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(22.1). StrongPoint’s Retail Technology business area continued a strong
performance in the quarter despite volume effects, primarily in Spain and the
Baltics, from the COVID-19-situation.
“This second quarter and most of this first half of 2020 has obviously been
turbulent. Whilst our primary objective has been safeguarding employees,
customers and business partners, we have in parallel done our upmost to deliver
our business critical products and services to our customers. Focusing on
serving the resilient grocery retail market, we have both mobilized our work
force and served our customers in ways I am proud of. We are stronger positioned
than ever to deliver true value to our customers and achieving our 2025
strategic ambitions”, says Jacob Tveraabak, Chief Executive Officer of
StrongPoint.
StrongPoint reported revenues of NOK 287.9 million (287.1) in the second quarter
of 2020 and an EBITDA of 25.6 million (22.1). Retail Technology delivered a
growth of two per cent compared to same quarter last year, Labels delivered a
growth of 21 per cent, and the volatile Cash Security business were highly
influenced by the COVID-19 measures and declined by 43 per cent. Reported
operating profit was NOK 13.4 million, up from NOK 8.3 million in the
corresponding quarter in 2019, while the cash flow from operating activities
ended at NOK -11.0 million (46.5). The company had disposable funds of NOK 97.5
million at the end of the quarter to cover short-term changes in working
capital.
“In this choppy quarter, we have had some parts of the business coming to an
almost complete stand-still at times, like our Retail Technology operations in
Spain and Cash Security. At the same time, we have experienced a very high
demand for our e-commerce logistics solutions, growing more than 70 % vs. same
quarter last year, and constituting 10 % of total revenue this quarter, up from
5 % in the full year 2019. Also, our adhesive labels business grew by more than
20 % growth vs. same quarter last year. The demand for our in-store solutions
and services has mostly been maintained. In total we have managed to uphold our
top line and improve our profitability this quarter. Our operating cash flow is
reduced compared to same quarter last year, however our balance sheet and
finances have remained solid throughout the entire period.,” Tveraabak
continues.
In a strategy update session in the first quarter of 2020, StrongPoint outlined
the strategy and ambitions for the company towards 2025. As a foundation for
creating shareholder value, the growth strategy is based on profitable and
organic growth, cost control and a solid balance sheet, targeting revenues of
NOK 2.5 billion and EBITDA margins of 13-15% in 2025. “The COVID-19 pandemic has
marked a shift in shopping behavior, with e-commerce and precautionary in-store
solutions booming, both now during the pandemic, but also likely creating
lasting customer behavior changes. StrongPoint is very well positioned with its
world-class solutions for the grocery retail sector in general. Combined with a
very strong customer base, relationships and partners in defined key countries,
we have the right starting point for further deepening our service with these
customers. With this backdrop I truly believe we have all the reasons to be
optimistic about the future as StrongPointers,” Tveraabak concludes.
StrongPoint ASA will present the financial results for the second quarter and
first half 2020 at 08:15 CET Tuesday 14 July 2020. The presentation will be
streamed live and can be followed at the company website.
EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements on page 22 in the attached quarterly
report.
For additional information please contact:
Jacob Tveraabak
CEO, StrongPoint ASA
Phone +47 90 82 13 70
Hilde Horn Gilen
CFO, StrongPoint ASA
Phone +47 920 60 158
About StrongPoint | www.strongpoint.com (http://www.strongpoint.com)
StrongPoint is driving productivity for European retailers by providing
innovative, integrated technology solutions for multi-channel retailing based on
long-standing relationships with customers and partners. StrongPoint is also a
leader in IBNS solutions for Cash-In-Transit (Cash Security), and Labels for
customers in Norway and Sweden. StrongPoint offers best-in-class service and
consultancy expertise through its team of 512 employees in Norway, Sweden, the
Baltics, France, Belgium, Spain and Russia. StrongPoint is headquartered in
Rælingen, Norway, and listed on the Oslo Stock Exchange (ticker: STRONG).
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.
Kilde
