Strong sales growth driven by temporarily increased deliveries to Bosch
PowerCell Sweden AB grew its sales during the first quarter 2020 with 190 percent, from MSEK 9.2 to 26.7. The growth was mainly driven by temporarily increased deliveries of fuel cell stacks to Bosch.
The Corona outbreak affected the activity level in China specifically but had no significant impact on the company’s overall sales and profitability during the quarter. There is however great uncertainty about how the pandemic will affect PowerCell going forward.
Currency effects attributable to a re-evaluation of bank assets in Euro at period-end affected the financial net during the quarter by a total of 25,781 thousand SEK and resulted in a positive income after tax of MSEK 7.8.
Total sales for the first quarter 2020 amounted to 26,727 Thousand SEK compared to 9,226 Thousand SEK the same quarter previous year, an increase by 190 percent. Operating income before items affecting comparability amounted to -17,609 Thousand SEK compared to -17,804 Thousand SEK the first quarter 2019.
“Temporarily increased deliveries of PowerCell S3 fuel cell stacks to Bosch is the reason behind the very strong sales development during the first quarter. The deliveries are made within the framework of our joint development and licensing agreement and is part of the work Bosch carry out to eventually take over and start their own production of S3 fuel cell stacks and fuel cell systems”, Per Wassén, CEO of PowerCell said.
The global Corona virus outbreak has had a clear impact on the activity level in China during the quarter as local employees have not been able to travel and meet with customers as usual. The overall impact on sales and profitability has nevertheless been more limited. It is however hard to predict how the outbreak will affect the company going forward due to the high degree of uncertainty surrounding the virus and its development.
Strategic review completed
During the quarter the company completed the strategic review initiated last year following the agreement with Bosch. The basis for the review has been a comprehensive analysis of how well the company’s products and technology fit into different application and product segments.
“We will focus on the marine and the stationary segments as well as the off-road segment, i.e., construction equipment and various sorts of material handling equipment”, Per Wassén said.
Financial highlights
| All amounts in TSEK | 2020 Jan-Mar |
2019 Jan-Mar |
2019 Jan-Dec |
2018 Jan-Dec |
| Net sales | 26,727 | 9,226 | 66,850 | 60,513 |
| Operating income before items affecting comparability | -17,609 | -17,804 | -79,898 | -60,893 |
| Operating income | -17,609 | -19,912 | 448,408 | -60,893 |
| Profit/loss after tax | 7,793 | -20,238 | 438,011 | -61,862 |
| Operating cash flow | -32,700 | -9,773 | 369,146 | -99,981 |
For further information, please contact:
Per Wassén
CEO, PowerCell Sweden AB (publ)
Phone: +46 (0) 31 720 36 20
Email: per.wassen@powercell.se
This information is insider information that PowerCell Sweden AB (Publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on May 8, 2020.
About PowerCell Sweden AB (publ)
PowerCell Sweden AB (publ) develops and produces fuel cell stacks and systems for stationary and mobile applications with a world class energy density. The fuel cells are powered by hydrogen, pure or reformed, and produce electricity and heat with no emissions other than water. As the stacks and systems are compact, modular and scalable, they are easily adjusted to any customer need.
PowerCell was founded in 2008 as an industrial spinout from the Volvo Group. The share (PCELL) is since 2014 subject to trade at Nasdaq First North Growth Market, Stockholm. G&W Fondkommission is Certified Adviser, e-mail: ca@gwkapital.se, phone: +46 8 503 000 50.