Doro - Better EBIT than expected, again

Sales in line with ABGSCe, but a 34% EBIT beat Increased tender activity Doro Care is expected to be spun off in Q4 Q1 details Sales SEK 337m (-3% vs. ABGSCe 347m). Group EBIT SEK 17m (+34% vs. ABGSCe 13m).

Adjusted for FX, sales declined 16. 4% y-o-y. Organic growth in Doro Care was 0% y-o-y.

Adj. EBIT 18m (+23% vs ABGSCe 15m). Net profit SEK 19m (+114% vs ABGSCe 9m).

Care EBIT was 7. 7m (+16% vs ABGSCe 6. 6m).

Phones EBIT was SEK 12. 7m (+12% vs ABGSCe 11. 3m).

Increased tender activity and several new contracts Both business units continued to be impacted by COVID-19 in Q1. Even so, management sees increased tender activity, especially in the Swedish market, and stated that procurements are gaining momentum. Doro Care won several new agreements in Sweden and UK during Q1, and management expect to see sales contribution from new contracts in the coming quarters.

Phones continued to suffer from COVID-19-related restrictions, in terms of sales in the quarter. On group level, the company witnessed increased problems in the supply chain related to component constraints, increased lead times and elevated freight costs. But it still managed to produce 37.

7% gross margin and a solid operating profit. A testament to the success of the ongoing restructuring programme, in our view. Doro now has implemented SEK 96m of the SEK 110-130m communicated cost savings from the programme.

Listing of Doro Care is in full swing The preparations for the separate listing of Doro Care is moving forward. Management aims to complete the listing during Q4’21. We continue to view positive on the listing.

With relatively few synergies between the two areas, we believe it will result in improved efficiency and innovation for both businesses.