Kebni Q1 report 2024

Kebni reports its first profitable quarter with a positive result of 2 MSEK and an EBITDA of 3,2 MSEK, 10,1 %. The company is now focusing on production optimization and ramping up its sales activities to find its next major development project.

Financial development Q1 (KSEK)

• Net sales, 30 980 (10 883)
• EBITDA, 3 190 (-7 696)
• Operating profit, 2 105 (-10 081)
• Net profit for the period, 2 075 (-36 566)
• Net cash flow for the period, -9 294 (8 038)
• Operating cash flow for the period, -6 482 (-14 554)
   

Significant events Q1

• Kebni enters strategic partnership with Varisis for the Indian market.

Significant events after the period

• Johanna Toll Meyer starts as new CFO.
   
• The Nomination Committee of Kebni puts forward its proposal to elect Anders Persson as the new Chairman of the Board, along with the new election Anna-Karin Stenberg and Martin Elovsson and the re-election of Jan Wäreby and Magnus Edman as members of the Board.
  
  The Annual General Meeting will be held on 16 May 2024 at 15.00, Scandic Victoria Tower Hotel, Arne Beurlings Torg 3, Kista.

Comments from the CEO

Kebni reaches yet another big milestone as we proudly report our first ever profitable quarter. Building on the momentum from our all-time-high revenue in Q4 2023, we deliver a positive result of 2 MSEK in Q1. This is an important breakthrough on our journey towards profitable growth.

IMU deliveries for Saab continues
The tailored IMU for Saab’s NLAW remains an instrumental growth-driver for Kebni. After a period of heavy investments in product development and capacity, we have now entered the phase of serial deliveries. Our focus is shifting towards continuous product improvements and fine-tuning of the production process and delivery schedule, all in close collaboration with Saab. In parallel, we are preparing for potential future production ramp-ups, that can be achieved within our current capacity.
 

Optimizing the production flow in Karlskoga
With the Inertial Sensing production in Karlskoga up and running, we are now working on optimizing the production flow. This includes managing the stream of uncalibrated sensor units from our suppliers, moving them through our production process at the right pace and finally balancing the deliveries with our customers requested delivery rate and timing. To achieve an optimal production flow, we are keeping close and transparent dialouges with all partners and customers.

ScaffSense going into pilot testing
Our joint venture ScaffSense are making exciting progress as the product has now proven ready for pilot testing. The first big-scale pilot project in collaboration with a leading player on the Swedish scaffolding market, is now planned in May. We are looking forward to seeing the results and moving forward towards the commercial launch.

Driving growth: Sales and Partnerships
Building upon our success with the Saab-project, we are now ramping up our sales activities and actively seeking new customers within both product areas. Sweden’s recent NATO membership is giving us access to a broader market of defence and security customers in Europe, which we are currently exploring. In Asia, we are involved in several promising discussions with potential clients. This quarter, Kebni formed a partnership in India to explore business opportunities for the maritime antenna Kebni Gimbal. This is one of many examples of strategic partnerships that we are currently forming globally, to find the right customer for our next major development project. Additionally, as part of expanding our global reach, we are now transitioning our corporate communications to English, making us more accessible to international customers and stakeholders.

In the defense industry in particular, the requirements are more extensive, business cycles longer, and consequently order volumes and margins usually higher than in other industry segments. To compete and win as a supplier in this arena, it is crucial to build trust and credibility through long-term relationships, along with project timing, deep industry knowledge and lots of endurance. After having worked this market with perseverance for the last couple of years, we are now starting to see the result of this effort. On top of that, we continue our efforts to reduce operational costs. I am convinced that this is the key to our future success.

It is a privilege to be a part of Kebni at this exciting time. Thank you to our customers and shareholders for supporting our mission, and a special thank you to everyone in the Kebni team for their outstanding work. As we continue our growth journey together, our focus remains on achieving stable and sustainable growth and profitability.

Contact:
Maya Larsson, Head of Market Communications & IR
[email protected] / 070-971 00 05

This is insider information that Kebni AB is obliged to publish in accordance with the EU Market Abuse Regulation (MAR). The company's share (KEBNI B) is traded on the Nasdaq First North Growth Market. Certified Adviser is G&W Fondkommission. The information was submitted, through the care of the contact person above, for publication on April 29, 2024 at 07.30 CET.

About Kebni AB (publ)
Kebni has a long history and extensive experience in advanced inertial sensing solutions as well as satellite antenna solutions. The company, headquartered in Stockholm, is a leading supplier of reliable technology, products and solutions for stabilization, positioning, navigation, and safety. Kebni serves products and solutions to government, military, and commercial customers globally.

For more information, visit www.kebni.com.