Doro: External factors heald back Q1 - ABG

Sales -1% vs cons and EBIT -81% vs. cons
Supply chain - the main explanation of the low profitability
Expect cons to come down for 2022

Q1 results
Q1'22 report: Sales SEK 205m (-2.3% vs ABGSC 209m and -0.7% vs cons 206m), EBIT SEK 3m (-73.1% vs ABGSC 12m and -80.6% vs cons 16m), Adj. EBIT SEK 3m (-73% vs ABGSC 12m and -74% vs cons 12m), Net profit SEK 4m (-53% vs ABGSC 8m and -55% vs cons 8m), Order intake SEK 217m (3.4% vs ABGSC 210m). The organic growth was -1.9%, so the total growth of 3% is due to FX contribution.

Q1 thoughts
As we expected, the Q1 report was held back by external factors. Doro was affected by the external factors in terms of lower activity among customers, just like we expected. Despite these headwinds, the company managed to a strong order intake of SEK 217m (+3% vs ABGSC). GM was 32%, (vs ABGSC expected 36%) due to supply chain issues. On the conf. call the company explained that they now have secured the transportation for the year, but for a large price. However, there is still a risk for component shortages and price rise. The EBIT is weighted down by late costs related to Careium of SEK 1.2m, the adjusted EBIT margin is still low at 2.1%, mainly explained by the low GM.

Estimate revisions and valuation
At a first glance, we expect consensus to come down for 2022e. we expect especially the GM to come down for the year, due to the above-mentioned factors.
Läs mer på ABG Sundal Collier

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/doro/Equity-research/2022/4/doro---external-factors-heald-back-q1/