Quarterly Report • Oct 26, 2022
Quarterly Report
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Financial report and status
| Q3 | Q3 | YTD | YTD | Year | |
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Revenue | 345.9 | 196.4 | 967.4 | 697.2 | 981.3 |
| EBITDA | 20.7 | 8.0 | 42.0 | 33.6 | 53.6 |
| EBITDA margin | 6.0% | 4.1% | 4.3% | 4.8% | 5.5% |
| Operating profit (EBIT) | 10.2 | 1.4 | 16.4 | 14.7 | 27.5 |
| Ordinary profit before tax (EBT) | 9.9 | -0.5 | 20.7 | 15.0 | 25.9 |
| Cash flow from operational activities | 4.0 | 180.6 | -21.5 | 222.7 | 225.5 |
| Cash flow from operational activities ex discontinued operations | 4.0 | 14.7 | -21.5 | 52.6 | 55.7 |
| Disposable funds | 125.6 | 286.2 | 125.6 | 286.2 | 274.2 |
| Earnings per share from continued operations (NOK) | 0.18 | -0.01 | 0.37 | 0.29 | 0.51 |
| Earnings per share from continued operations, adjusted | 0.27 | 0.04 | 0.57 | 0.42 | 0.67 |
| Earnings per share included discontinued operations (NOK) | 0.18 | 3.74 | 0.37 | 4.10 | 4.32 |
We achieved our strongest quarter ever in terms of revenue. Delivering a turnover of 346 MNOK in Q3 is a great achievement, a very strong 76% growth vs. same quarter last year. The absence of component shortages would have generated an additional 15 MNOK revenue in the quarter and foreign exhange had a negative 9 MNOK impact on sales. The third quarter is obviously positively impacted the inclusion of recently acquired Air Link Group with 110 MNOK in revenue. However, organically StrongPoint grew its topline a very healthy 20% driven by in-store efficiency solutions. That includes continued rollouts of Electronic Shelf Labels (ESLs) from Pricer, higher sales and service of Self-Checkout solutions, Cash Management solutions and more.
Our EBITDA in the second quarter was 20.7 MNOK (6.0%), up from 8.0 MNOK (4.1%) the same quarter last year. The current EBITDA-level is to a large extent kept down in the quarter by our continued and planned investment in e-commerce. To put that into perspective, had StrongPoint only focused on its in-store solutions, our EBITDA margin in the quarter would have been approx. 10-11%.
The acquisition of Air Link Group is not only a significant financial contribution to StrongPoint. The acquisition, first and foremost provides a robust platform for growth in the UK and Irish markets. We strongly believe in bringing StrongPoint's own, proprietary products and solutions, as well as key partner solutions, to these new markets.
Furthermore, we are equally positive about bringing Air Link Group solutions and services, such as their swivel checkouts – combining manned and unmanned checkout tills – and environmentally friendly checkout-refurbishment services, which have gained significant traction in the UK and Ireland, to other StrongPoint markets.
As the total market for e-commerce has softened, we are being ever more stringent in terms of which e-commerce solutions we are investing in. As an example, we have great confidence in the potential from our partnership with AutoStore, offering automation solutions, and how this fits very well into our overall e-grocery fulfillment solutions portfolio. Overall though, we will be reducing our e-commerce investment levels to match the slow-down in e-commerce demand.
The turnaround in our Spanish business continues and the unit achieved a 7% growth in the quarter, held back by continued shortages of components for our Cash Management solutions. The ongoing turnaround is significantly improving EBITDA, and is set to continue for the rest of the year, achieving the earlier communicated run rate break-even coming out of 2022.
In today's market, characterized by general uncertainty and turmoil, I am pleased that StrongPoint focuses on serving the stable and resilient grocery retail market. We are demonstrating very solid growth and we have very healthy margins in the mature in-store solutions market. In the longer term we believe in a very positive trajectory for e-commerce, and we continue to believe in creating real world impact for retailers and end-consumers with our solutions every single day. In particular in today's world, it is worthwhile mentioning that StrongPoint still, to a large extent, is a project-driven company. Whereas we seek an increased share of revenue to be recurring over the quarters we have to acknowledge that top and bottom line still will be fluctuating over the quarters. Going forward, however, I continue to be optimistic about achieving our 2025 strategic ambitions.
Stay safe, strong and passionate!
CEO's perspective
In uncertain times, one should seek what is certain. In difficult economic times, people will always shop for groceries which is why serving the resilient and non-cyclical grocery market is as close to certainty as possible. This is evident for StrongPoint, and it is evident in the third quarter financial results: a very strong 76% topline growth, of which 20% was organic. Almost 2.5 times EBITDA improvement and EBIT increased 7-fold. We are particularly
proud of the financial results given the context of negative currency impact, inflation and continued component shortages. Beyond this, the acquisition of Air Link Group comes across as a strong buy, not just in this quarter but as a platform for future growth in the UK and Irish markets going forward. We continue to believe in StrongPoint's 'double opportunity' – capitalizing on the opportunity from the increased demand for e-groceries and in-store efficiency. With the economic and geopolitical turmoil, grocers are today increasingly focusing on 'familiar' projects and investments in-store. However, we continue to believe in the positive long-term development for e-groceries, and will as such continue to invest in e-commerce growth – although at a more moderate level than in recent years.
Jacob Tveraabak CEO of StrongPoint
The total revenue increased by 76.1% compared with same quarter last year. The Nordics grew by 10.9%, mainly from increased revenue in In-store Productivity, while Rest of Europe achieved a total of 234.3% growth in revenue compared to same quarter last year. The figures include 110.4 MNOK revenue from Air Link Group (ALS), reflecting Q3 as the high season quarter for the business in the UK and Ireland. Excluding ALS, the growth in Rest of Europe ended at 41.7%, especially due to strong growth in the Baltics. The shortage of components affected the cash management sale by negative 15 MNOK in the quarter. The supply situation for electronic combo-cards seems to be somewhat improved at the end of the quarter and for Q4 outlook.
The EBITDA increased with 12.7 MNOK, and the EBITDA margin increased to 6.0% (4.1%). The EBITDA margin is held back by a significant growth in e-commerce resources compared to same quarter last year, while sales have not increased. Despite an increased EBITDA margin, StrongPoint experienced a gross margin decline from 45% to 37% in a quarter-by-quarter comparison. The decline in gross margin was a result of the impact of ALS (generally lower gross margin), higher third party product sales, competitive price changes and approx. one percentage point decline stems from currency effects. Cost increases from suppliers has to a large degree been absorbed by price increases to customers and internal cost reductions. The Instore-related business continued with a positive EBITDA in the quarter, somewhat negatively affected by unfavorable foreign exchange, inflation and product mix. The inflation affected mostly OPEX (1.5-2 MNOK higher cost on electricity and fuel only). The investments in e-commerce continued also in Q3, especially within R&D and Sales resources. The macro trend within e-commerce continued to decline in Q3, forcing a more stringent cost focus in the short term while working actively to strengthen our long-term market position. The number of employees increased by 115 compared to Q3 last year, of which 92 came from ALS.
StrongPoint is a grocery-focused company that serves retailers with products and solutions for in-store and online shopping.
2019 2020 2021 2022
Operating revenue per quarter (MNOK)
2017 2018 2019
| Revenue | Q3 | YTD | Year | ||
|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 |
| Nordics | 154.3 | 139.1 | 561.3 | 491.0 | 695.5 |
| Rest of Europe incl. R&D | 191.6 | 57.3 | 406.1 | 212.4 | 293.1 |
| ASA/Elim | - | - | - | -6.2 | -7.2 |
| Total | 345.9 | 196.4 | 967.4 | 697.2 | 981.3 |
| EBITDA | Q3 YTD Year |
|||||
|---|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Nordics | 11.6 | 15.8 | 49.2 | 56.0 | 77.0 | |
| Rest of Europe incl. R&D | 18.4 | -2.5 | 25.7 | 2.3 | 14.6 | |
| ASA/Elim | -9.3 | -5.4 | -32.9 | -24.8 | -38.0 | |
| Total | 20.7 | 8.0 | 42.0 | 33.6 | 53.6 | |
| Number of employees | 517 | 402 | 517 | 402 | 400 | Continued customer success in |
80 100 120 200 250 300 Driven by frequent price changes in grocery stores due to rapidly increased cost of goods sold the Electronic Shelf Label installations has increased substantially during Q3 in Sweden. The volume almost tripled compared to same quarter last year.
350 StrongPoint Baltics received an order for more than 1 MEUR for installation of software and hardware for point-of-sale and ERP solutions for a Do-It-Yourself chain. The project is expected to start in Q1 2023.
ALS announced two major contracts in the quarter. One contract was with a leading grocery retailer in the UK, for a checkout conversion solution. The 'swivel' allows a staffed checkout to also be used as a selfservice checkout. The order of 1.7 MGBP will be installed during Q4 2022 and Q1 2023. The second contract was with another leading UK-based grocery retailer for a self-service checkout upgrade project. The contract was an extension of an ongoing project and will be completed in Q1 2023.
50 100 150 200 250 300 Although some markets have seen a dip in demand for grocery e-commerce the post-Covid penetration is higher than pre-pandemic. Counter-intuitively the recent economic trends of increased inflation, wage costs and food-prices increase StrongPoint's value proposition and 'double opportunity'. StrongPoint's solutions are designed to increase efficiency savings in in-store and online operations which is what grocery retailers around the world are focused on.
The growth in the quarter supports the overall 2025 ambitions. Despite a dip in e-commerce revenue, the instore operations grew 20% organically, and the acquired ALS grew by 70% compared to their own figures for Q3 2021.
ALS has long-term relationships with UK and Irish top-tier grocery retailers and an experienced team of field service technicians and project management resources. Some of the solutions ALS provides in the home market – like the 'swivel' product that enables a manned check-out to become a self-service solution, and also the environment friendly refurbishment of physical checkouts seems very relevant for other StrongPoint markets.
StrongPoint has a strategic ambition to achieve NOK 2.5 billion in revenues and EBITDA margins of 13-15% by 2025.
StrongPoint's world class retail technology solutions for increasing in-store efficiency and e-commerce technology for online order picking and last mile solutions have a double opportunity to meet two key global trends affecting grocery retailers. Firstly, the pressure on brick and mortar retailers' margins means that grocery retailers need to find ways to increase in-store productivity to boost profitability. Secondly, the pressure to develop an online presence, grow their market share and reduce costs means they need highly efficient order fulfilment solutions and provide multiple last-mile delivery and pick-up options. These two key industry trends are increasingly relevant for grocery retailers in today's turmoiled macro environment.
Across StrongPoint's solutions, we are expecting healthy growth towards 2025. The more mature In-Store Solutions today yield's EBITDA-returns in the order of magnitude 10-11% today, and the overall margin improvement to reach 13-15% is mainly based on achieving operational leverage in the countries StrongPoint is present in addition to sound margins in the E-commerce Logistics area which has a favorable long-term outlook.
BNOK 2.5 in 2025 EBITDA 13-15%
The industry is now on the edge of the next transformation in to five years. "
Source: McKinsey & Company, The next horizon for grocery e-commerce: Beyond the pandemic bump, April 2022 www.mckinsey.com/industries/retail/our-insights/the-next-horizon-for-grocery-ecommerce-beyond-the-pandemic-bump
Overall the long-term trajectory for e-grocery growth continues to be positive. Grocery retailers at whatever stage of e-commerce maturity need to ensure the highest possible levels of efficiency to minimize costs to boost profitability. StrongPoint has some of the most efficient e-commerce solutions in the world, including the world's most efficient manual picking solution, and has been a trailblazer in terms of profitable click and collection solutions at scale.
faced
Recent Trends: Increases in inflation, food prices and labour costs.
Grocery e-commerce
Enhances retailers need for increased efficiency savings in-store and online.
Opportunites for StrongPoint
StrongPoint finances can be divided into three categories. What is driving our business today, what we are investing to serve future demand and how we are ensuring we future-proof our customers with next generation technology solutions.
Order Picking solution * AutoStore Micro-Fulfillment centers
Click & Collect Lockers * Drive-Thru * In-Store Pickup * Home Delivery with route optimization
Pricer Electronic Shelf Labels ShopFlow Logistics * Digi Scales and Wrapping Systems
Payment Solutions CashGuard Cash Management *
Self-Checkout * Self-Scanning Vensafe Sales Automation *
Retail Management POS Systems Commerce Management System
* Proprietary technologies
These are our in-store solutions that make up 93% of our current business year to date 2022. These have strong EBITDA margins and are seeing strong, continued demand from our core grocery retailer customers in our core markets.
addition to our partnership with AutoStore, the world's leading automation provider for grocery retailers. These do not yet have the commercial maturity compared to our in-store solutions but we have a solid base of clients mainly in Sweden, and now in Norway with our first AutoStore installation. The market dynamics show that there is strong demand in the near and medium future as grocery e-commerce continues to grow and automation becomes more and more in-demand to counter-act growing labour costs and shortages.
These are the solutions of tomorrow that we are already investing in today. As labor costs are set to only increase the demand for next generation technology solutions continues to grow, especially in robotics and friction-free shopping. By investing in these solutions today we future-proof our customers.
Sauce Tomorrow's solutions
Toppings E-commerce solutions
The revenue in Norway declined by 16.3% compared to the same quarter last year, mainly due to a lower rate of installations of ESLs. Approximately 90% of the announced ESL contracts for NorgesGruppen and COOP have now been installed. Despite the majority of the large orders being delivered to grocery chains in Norway, ESL installation continues to other segments in the retail industry. As the first store at Oslo Airport a gift and interior chain has installed ESLs. The global constraints on components affected the sale of Cash Management solutions also in Q3 by approx. 12 MNOK.
The revenue in Sweden increased by 38.3% compared to the same period last year. Price adjustments for Pricer ESL have been necessary to ensure competitive prices in Sweden, resulting in an almost triple revenue level compared to last year. Year to date the ESL sale has increased by 65%. The e-commerce sale declined by 12% in the quarter compared to last year, due to lower software revenue on Order Picking Software as a result of the lower number of online orders. The number of orders in the quarter was above prepandemic levels (Q3 2019).
The business segment Nordics currently consist of the operating business units in Norway and Sweden. The revenue includes deliveries to other parts of the Nordics like Denmark and Iceland.
| Q3 | YTD | |||||
|---|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Product Sales | 31.4 | 43.3 202.8 163.3 247.5 | ||||
| Service | 26.9 | 26.4 | 86.9 | 81.0 114.1 | ||
| Revenue | 58.3 | 69.7 289.6 244.3 361.6 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 |
| Product Sales | 64.7 | 34.1 173.0 140.2 195.1 | |||
| Service | 31.3 | 35.3 | 98.6 106.5 138.9 | ||
| Revenue | 96.0 | 69.4 271.7 246.7 333.9 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 |
| - Norway | 58.3 | 69.7 | 289.6 | 244.3 | 361.6 |
| - Sweden | 96.0 | 69.4 | 271.7 | 246.7 | 333.9 |
| Total Revenue | 154.3 | 139.1 | 561.3 | 491.0 | 695.5 |
| EBITDA | 11.6 | 15.8 | 49.2 | 56.0 | 77.0 |
| - In % | 7.5% | 11.4% | 8.8% | 11.4% | 11.1% |
| EBT | 10.1 | 13.4 | 44.1 | 48.8 | 66.0 |
| - In % | 6.5% | 9.6% | 7.9% | 9.9% | 9.5% |
The revenue in the Nordics increased by 10.9% compared to the same quarter last year. The main contributors to the high sales activities are Pricer Electronic Shelf Labels (ESL) and Cash Management. The EBITDA declined by 4.2 MNOK to 11.6 MNOK in the quarter. Most of the decline stems from lower gross margin affected by product mix and negative currency effect, in addition to inflation effects on costs.
The business segment Rest of Europe consists of the operating business units in the Baltics and Spain, in addition to partner sales in the rest of Europe and rest of world. The ongoing R&D activities for own products have been allocated to this area.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 |
| - Baltic | 49.9 | 33.8 | 142.1 | 123.8 | 190.1 |
| - Spain | 15.0 | 13.9 | 55.7 | 44.8 | 67.5 |
| - UK & Ireland | 110.4 | - | 140.7 | - | - |
| - Rest of Europe | 16.3 | 9.6 | 67.7 | 43.8 | 35.4 |
| Total Revenue | 191.6 | 57.3 | 406.1 | 212.4 | 293.1 |
| EBITDA | 18.4 | -2.5 | 25.7 | 2.3 | 14.6 |
| - In % | 9.6% | -4.3% | 6.3% | 1.1% | 5.0% |
| EBT | 9.1 | -6.6 | 5.9 | -9.7 | -1.9 |
| - In % | 4.7% | -11.5% | 1.4% | -4.6% | -0.7% |
The business segment Rest of Europe increased the revenue by 234.3% compared to same quarter last year. The growth was 41.7% excluding the new UK operation from ALS UK and Ireland.
The EBITDA ended on 18.4 MNOK, adjusted for ALS the EBITDA was on the same level as last year. Product mix and more hardware sales in addition to inflation affected the gross margin, and increased investments in e-commerce contributed also to the low EBITDA level in the quarter.
Our business in the Baltics increased by a total of 47.7% in the quarter compared to the same quarter last year. The product revenue grew by 67.5% reflecting high installation rates of self-checkout systems to IKI, COOP Estonia and Rimi. Part of the installation was with third party hardware. Hardware for an Auto ID project in Lithuania and Fiscal Boards in Latvia was also delivered in the quarter. The service revenue grew by 27.7% as there have been several software development projects this quarter especially within POS and ERP software, amongst this an ERP project to a new Do-It-Yourself customer.
The Spanish revenue grew by 7.4% compared with the same quarter last year. The continued shortage of electronic components (combo cards) reduced the possible sales of cash management solutions in the quarter, in addition to Q3 being the low season for StrongPoint as the customers are either experiencing high season (tourism for the HORECA segment) or low season (vacation).
The revenue comes from the newly acquired company Air Link Group (ALS). The revenue increased by 70% compared to the same quarter last year (not part of StrongPoint at that time), reflecting a post pandemic backlog of projects to be delivered in a relatively short time. Q3 and partly Q2 are the top season quarters for ALS, while Q4 and Q1 are less intensive as the retailers plan for significantly less projects during the Christmas and New Year sale. The 2022 year to date revenue is unprecedented in the company's history.
Bullion IT ordered 250 CashGuard units in September last year to be delivered during first half of 2022, but due to the ongoing shortage of components there is still a backlog to Bullion IT to be delivered in Q4. Despite this, the growth in Q3 was 70%. The StrongPoint Supply chain organization pre-produces as many machines as possible and searches the market for components to reduce the delay to an absolute minimum.
| UK & Ireland | ||||||
|---|---|---|---|---|---|---|
| Q3 | YTD | |||||
| MNOK | 2022 | 2022 | ||||
Other partners contributed to the growth with sale of cash management and self-checkout solutions.
| Q3 | YTD | |||||
|---|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Product Sales | 28.5 | 17.0 | 74.5 | 76.5 109.5 | ||
| Service | 21.4 | 16.8 | 67.6 | 47.4 | 80.7 | |
| Revenue | 49.9 | 33.8 142.1 123.8 190.1 |
| Q3 | YTD | |||||
|---|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Product Sales | 10.9 | 10.6 | 43.8 | 34.5 | 53.7 | |
| Service | 4.1 | 3.3 | 11.9 | 10.3 | 13.8 | |
| Revenue | 15.0 | 13.9 | 55.7 | 44.8 | 67.5 |
| Q3 YTD |
Year | |||||
|---|---|---|---|---|---|---|
| MNOK | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Product Sales | 12.3 | 5.7 | 62.7 | 43.4 | 32.5 | |
| Service | 4.0 | 3.9 | 4.9 | 0.4 | 3.0 | |
| Revenue | 16.3 | 9.6 | 67.7 | 43.8 | 35.4 |
| MNOK | 2022 | 2022 |
|---|---|---|
| Product Sales | - | - |
| Service | 110.4 140.7 | |
| Revenue | 110.4 140.7 |
In-Store Productivity segment had an increased revenue of 24.7% compared to last year. The growth in Q3 2022 came from installation of Pricer ELSs in Sweden. In the quarter, Swedish ESLs almost tripled the ESL revenue compared to same quarter in 2021. The announced large orders in Norway have reached an installation rate of approx. 90%, and by that almost all have been completed.
Despite the ongoing challenges in the global supply of combo cards, the Payment Solutions segment grew by 10.8% in the period. StrongPoint used the financial capacity to pre-produce the cash management systems as much as possible to reduce time to delivery when the suppliers manage to purchase the components with limited availability. The Norwegian installations more than doubled compared to the same period last year while the partner revenue increased by approx. 60%. The Spanish operations came in on the same level as last year on cash management. The component situation affected the revenue by around 15 MNOK on orders not yet delivered. The quarter-to-quarter delay will maintain as long as the component situation exists in the market.
Check Out Efficiency increased by 44.4% compared to the same quarter last year, with installation of Self-Checkouts for IKI as the main contributors for the growth. The installations were done with both our own and third party hardware. The increased service revenue reflects that the number of active units have increased.
The Shop Fitting product segment reflects the newly acquired company Air Link Group. Within the 'Shop within shop' concession, StrongPoint ALS works with the top tier retailers to maximise the sales floor space. Upgrade projects for self-service checkout and outdoor installations also contributed to the revenue in the quarter. The third quarter is traditionally, and also in 2022, the top season for projects for the retailers.
Other retail technology, mainly software projects in the Baltics, increased by 16.4% in the period. The revenue consists of both software, services, and hardware deliveries, both from recurring operation and development projects, for large grocery retailers in the Baltics.
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2022 2021 2022 2021 2021 | ||||
| Product Sales | 73.7 | 55.7 262.8 197.5 283.9 | |||
| Service | 20.6 | 19.9 | 64.9 | 58.5 | 82.0 |
| Revenue | 94.3 | 75.7 327.7 255.9 365.9 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2022 2021 2022 2021 2021 | ||||
| Product Sales | 24.7 | 17.5 115.2 | 64.0 102.3 | ||
| Service | 28.2 | 30.3 | 89.0 | 89.4 122.2 | |
| Revenue | 52.9 | 47.8 204.2 153.4 224.5 |
| Q3 | YTD | Year | |||
|---|---|---|---|---|---|
| MNOK | 2022 2021 2022 2021 2021 | ||||
| Product Sales | 24.4 | 17.1 | 84.3 | 94.1 116.1 | |
| Service | 9.9 | 6.7 | 28.0 | 22.3 | 34.2 |
| Revenue | 34.3 | 23.8 112.4 116.3 150.3 |
| Q3 | YTD | Year | ||||
|---|---|---|---|---|---|---|
| MNOK | 2022 2021 2022 2021 2021 | |||||
| Product Sales | 19.0 | 17.6 | 58.9 | 47.2 | 63.7 | |
| Service | 19.6 | 15.5 | 56.6 | 43.9 | 68.9 | |
| Revenue | 38.6 | 33.2 115.5 | 91.1 132.6 |
| Q3 | YTD | |
|---|---|---|
| MNOK | 2022 2022 | |
| Product Sales | - | - |
| Service | 110.4 140.7 | |
| Revenue | 110.4 140.7 |
The e-commerce logistics segment declined by 4.3% compared to the same quarter last year. The lack of growth reflects the general market's cooling following last year's e-commerce boost. Sweden is the largest e-commerce market for StrongPoint, and the e-commerce share is still above the pre pandemic levels (2019). Rolling 12 months recuring revenue was slightly up vs. same quarter last year.
In countries where e-commerce is more mature, click & collect is proving to be a far more efficient and costeffective model for last mile delivery. And within the click & collect options, grocery lockers offer efficiency savings and thus long-term profitable option.
Relative share of revenue per segment (%)
| Q3 | YTD | ||||||
|---|---|---|---|---|---|---|---|
| MNOK | 2022 2021 2022 2021 2021 | ||||||
| Product Sales | 5.9 | 6.3 | 35.7 | 49.0 | 64.9 | ||
| Service | 9.4 | 9.7 | 31.2 | 31.4 | 43.2 | ||
| Revenue | 15.3 | 15.9 | 66.9 | 80.4 108.1 |
Rolling 12 months recuring revenue (MNOK)
Product development within our Order Picking software focuses especially on new features in the Gen. 3 version, improving the integration to other systems and migrate customers on Gen. 1 and Gen. 2 versions to the Gen. 3. The migration is expected to be finalised within the end of 2023. The architecture and solution in the system has proven to be agile and allowing StrongPoint to quickly accommodate different customer needs.
The media coverage of the future of e-commerce is dominated by non-grocery news. Unlike other retail segments, the outlook for grocery e-commerce continues to be positive. In the long-term the signs continue to point to a substantial increase overall level, greater than the pre-Covid estimates.
As retailers look beyond capturing customers and labour costs surge, efficiency-boosting solutions are the next priority.
Fueled by evolving customer expectations, increased competition, and technological advancements, online could account for up to 18 to 30 percent of the food-at-home market in some leading European countries. "
McKinsey, The next S-curve of growth: Online grocery to 2030he pandemic bump, April 2022 Source: www.mckinsey.com/industries/retail/our-insights/the-next-s-curve-of-growth-online-grocery-to-2030
Technology is the key to making grocery e-commerce faster, easier and, most important, profitable. Technology can be used to increase efficiencies of current manual processes, from picking to last mile, or be used to completely replace manual processes, such as with automation with AutoStore.
Efficiency-savings can be used to cut costs for end-consumers, creating a competitive advantage and attracting more cost-conscious consumers who are today increasingly looking at discounters to soften the cost-of-living crisis affecting many countries.
" With technological advancements, business models and operations that are unprofitable today could become more sustainable in the future. McKinsey, The next S-curve of growth: Online grocery to 2030c & Company, The next horiz-Source: www.mckinsey.com/industries/retail/our-insights/the-next-s-curve-of-growth-online-grocery-to-2030
StrongPoint | Q3 and YTD 2022
E-groceries have gone beyond the early adopters and urban areas. Grocery e-commerce expanded geographically, and demand is no-longer concentrated in big cities.
Despite e-groceries experiencing a temporary dip in some markets, the long-term outlook is positive. It is the weekly shoppers where the long-term and sustainable profitable opportunities lie for brick-and-mortar grocery retailers but the biggest challenges in terms of profitability at scale remain. Many processes are legacy solutions developed in the very early days of e-commerce where maximizing efficiency wasn't a priority as the market was so small. In terms of last mile, home delivery costs entail staff and fuel so costs which are both sharply increasing, making click & collect pickup more attractive. However, in most markets outside Sweden, click & collect remains highly manual with inefficient practices and high labour costs creating obstacles to maximising profitability.
The industry is now on the edge of the next transformation in e-commerce: grocery executives expect e-commerce penetration to more than double for their own organizations in the next three to five years.
Source: McKinsey & Company, The next horizon for grocery e-commerce: Beyond the pandemic bump, April 2022 www.mckinsey.com/industries/retail/our-insights/the-nexthorizon-for-grocery-ecommerce-beyond-the-pandemic-bump
"
| KNOK | Q3 2022 Q3 2021 | Chg. % YTD 2022 YTD 2021 | Chg. % Year 2021 | ||||
|---|---|---|---|---|---|---|---|
| Revenue | 345 884 | 196 363 | 76.1% | 967 412 | 697 157 | 38.8% | 981 339 |
| Cost of goods sold | 217 677 | 107 060 | 103.3% | 598 595 | 401 427 | 49.1% | 560 104 |
| Payroll | 73 468 | 55 699 | 31.9% | 216 852 | 186 455 | 16.3% | 255 147 |
| Share based compensation | 2 102 | 1 697 | 23.9% | 4 208 | 4 779 | -11.9% | 6 178 |
| Other operating expenses | 31 968 | 23 954 | 33.5% | 105 771 | 70 934 | 49.1% | 106 285 |
| Total operating expenses | 325 215 | 188 410 | 72.6% | 925 426 | 663 595 | 39.5% | 927 714 |
| EBITDA | 20 669 | 7 953 | 159.9% | 41 986 | 33 563 | 25.1% | 53 625 |
| Depreciation tangible assets | 6 223 | 4 638 | 34.2% | 17 041 | 13 155 | 29.5% | 18 718 |
| Depreciation intangible assets | 4 218 | 1 907 | 121.2% | 8 576 | 5 685 | 50.9% | 7 403 |
| EBIT | 10 228 | 1 409 | 626.0% | 16 369 | 14 723 | 11.2% | 27 504 |
| Interest expenses | 1 477 | 342 | 331.4% | 1 823 | 1 259 | 44.8% | 1 596 |
| Other financial expenses/currency differences | -897 | 1 491 | -160.2% | -5 785 | -1 450 | -298.9% | 184 |
| Profit from AC. Service companies | 263 | -27 1058.3% | 399 | 96 | 315.2% | 175 | |
| EBT | 9 911 | -452 2293.8% | 20 729 | 15 010 | 38.1% | 25 899 | |
| Taxes | 1 878 | -107 1861.1% | 4 251 | 2 166 | 96.3% | 3 542 | |
| Profit from continued operations | 8 033 | -345 2427.4% | 16 478 | 12 844 | 28.3% | 22 357 | |
| Profit after tax from discontinued operations | - | 165 455 | - | 168 760 | 168 418 | ||
| Profit/loss after tax | 8 033 | 165 110 | -95.1% | 16 478 | 181 604 | -90.9% | 190 775 |
| Earnings per share | |||||||
| Number of shares outstanding | 44 888 352 44 376 040 | 44 888 352 44 376 040 | 44 376 040 | ||||
| Av. number of shares - own shares | 44 740 494 44 172 852 | 44 185 129 44 249 732 | 44 190 919 | ||||
| Av. number of shares diluted- own shares | 47 740 494 46 247 852 | 47 185 129 46 324 732 | 46 265 919 | ||||
| EPS from continued operations | 0.18 | -0.01 | 0.37 | 0.29 | 0.51 | ||
| EPS included discontinued operations | 0.18 | 3.74 | 0.37 | 4.10 | 4.32 | ||
| Diluted EPS from continued operations | 0.17 | -0.01 | 0.35 | 0.28 | 0.48 | ||
| Diluted EPS incl. discontinued operations | 0.17 | 3.57 | 0.35 | 3.92 | 4.12 | ||
| EBITDA per share from continued operations | 0.46 | 0.18 | 0.95 | 0.76 | 1.21 | ||
| EBITDA per share incl. discontinued operations | 0.46 | 0.24 | 0.95 | 1.11 | 1.56 | ||
| Diluted EBITDA per share from continued operations |
0.43 | 0.17 | 0.89 | 0.72 | 1.16 | ||
| Diluted EBITDA per share incl. discontinued operations |
0.46 | 0.24 | 0.89 | 1.06 | 1.49 | ||
| Total earnings | |||||||
| Profit/loss after tax | 8 033 | 165 110 | -95.1% | 16 478 | 181 604 | -90.9% | 190 775 |
| Exchange differences on foreign operations | 4 514 | 514 | 777.4% | 4 959 | -12 745 | 138.9% | -19 400 |
| Total earnings | 12 546 | 165 625 | -92.4% | 21 436 | 168 860 | -87.3% | 171 375 |
The Board and group CEO have today considered and approved StrongPoint's financial statements for the third quarter and year to date 2022, including comparative consolidated figures for the third quarter and year to date 2021. This report has been prepared in accordance with IAS 34 on interim financial reporting as determined by the European Union, and with supplementary requirements pursuant to the Norwegian Securities Trading Act. The Board and CEO hereby declare, to the best of their knowledge, that the financial statements for the third quarter and year to date 2022 have been prepared in accordance with prevailing accounting principles and that the information in the financial statements gives a true and fair view of the assets, liabilities, financial position and profit of the group taken as a whole per 30 September 2022 and per 30 September 2021. To the best of their knowledge, the report gives a true and fair overview of important events during the accounting period and the impact of these events on the financial statements.
Morthen Johannessen Chairman
Ingeborg Molden Hegstad Director
Cathrine Laksfoss Director
Rælingen, 25 October 2022
Klaus de Vibe Director
Peter Wirén Director
Jacob Tveraabak CEO
| Accounting year |
General meeting |
Dividend per share |
|
|---|---|---|---|
| 2021 | 28.04.2022 | 0.80 | |
| 2020 | 28.04.2021 | 0.70 | |
| 2019 | 22.10.2020 | 0.60 | |
| 2018 | 26.04.2019 | 0.55 | |
| 2017 | 24.04.2018 | 0.50 | |
| 2016 | 20.04.2017 | 0.50 | |
| 2016 | 05.01.2017 Extraordinary | 1.00 | |
| 2015 | 28.04.2016 | 0.45 | |
| 2014 | 30.04.2015 | 0.35 | |
| 2013 | 25.04.2014 | 0.30 | |
| 2012 | 26.04.2013 | 0.25 | |
| 2011 | 08.05.2012 | 0.25 |
Cash flow from operational activities in the third quarter was 4.0 MNOK (14.7). The main contribution to the increased working capital was higher receivables reflecting sales to large retail chains, and increased inventory to limit time to market for Click & Collect lockers and Cash Management.
Disposable funds were 125.6 MNOK (286.2) per September 30, 2022, of which 100 MNOK was available credit facility. The net interest-bearing debt increased by 42.4 MNOK compared to last quarter and ended at 67.0 MNOK, as an effect of the renewal of rent agreements according to IFRS 16.
The Group's holding of own shares at the end of the second quarter amounted to 253,703, which represents 0.6 per cent of the outstanding shares.
The Group has shareholder programs for the Board of Directors, the Group executive management and the employees. 88,038 shares have been assigned so far in 2022 (166,157 in the year 2021).
StrongPoint has a long-term incentive program for management and key employees. More information on the program can be found in note 8.
| KNOK | Share capital |
Treasury shares |
Other paid in equity |
Translation variances |
Share Option Program |
Other equity |
Total equity |
|---|---|---|---|---|---|---|---|
| Equity 31.12.2020 | 27 513 | -52 | 351 262 | 66 252 | 440 | -79 355 366 059 | |
| Purchase/sale of own shares | -313 | -13 322 -13 635 | |||||
| Dividend 2020 | -31 050 -31 050 | ||||||
| Share Option Program | 5 441 | 5 441 | |||||
| Profit this year after tax | 190 775 190 775 | ||||||
| Other comprehensive income and expenses |
-19 400 | -19 400 | |||||
| Reclassification discontinued operations |
-11 028 | 11 028 | - | ||||
| Equity 31.12.2021 | 27 513 | -364 | 351 262 | 35 824 | 5 881 | 78 076 498 190 | |
| Purchase/sale of own shares | -3 312 | -3 312 | |||||
| Dividend 2021 | -34 991 -34 991 | ||||||
| Share Option Program | 4 919 | 4 919 | |||||
| Acquisition of ALS paid in shares |
318 | 310 | 22 202 | 22 830 | |||
| Profit this year after tax | 16 478 | 16 478 | |||||
| Other comprehensive income and expenses |
4 958 | 4 958 | |||||
| Equity 30.09.2022 | 27 831 | -54 | 351 262 | 40 781 | 10 801 | 78 452 509 071 |
| KNOK | 30.09.2022 | 30.09.2021 | 30.06.2022 31.12.2021 |
||||
|---|---|---|---|---|---|---|---|
| ASSETS | |||||||
| Intangible assets | 88 093 | 33 434 | 92 602 | 30 371 | |||
| Goodwill | 162 135 | 127 707 | 159 565 | 124 641 | |||
| Tangible assets | 24 370 | 20 860 | 25 403 | 19 031 | |||
| Right-of-use assets | 77 353 | 32 952 | 40 030 | 43 241 | |||
| Long term investments | 5 565 | 4 767 | 5 304 | 4 775 | |||
| Other long term receivables | 1 303 | 15 705 | 1 274 | 15 622 | |||
| Deferred tax | 18 086 | 4 602 | 17 752 | 17 240 | |||
| Non-current assets | 376 906 | 240 026 | 341 930 | 254 921 | |||
| Inventories | 252 652 | 201 002 | 214 253 | 211 256 | |||
| Accounts receivables | 283 185 | 151 531 | 271 730 | 175 627 | |||
| Prepaid expenses | 27 734 | 21 156 | 25 026 | 16 646 | |||
| Other receivables | 6 059 | 23 725 | 9 895 | 13 885 | |||
| Bank deposits | 53 858 | 186 156 | 50 470 | 174 198 | |||
| Current assets | 623 488 | 583 570 | 571 373 | 591 612 | |||
| TOTAL ASSETS | 1 000 395 | 823 596 | 913 304 | 846 533 | |||
| EQUITY AND LIABILITIES | |||||||
| Share capital | 27 831 | 27 513 | 27 831 | 27 513 | |||
| Holding of own shares | -157 | -124 | -77 | -364 | |||
| Other equity | 481 398 | 476 383 | 469 141 | 471 041 | |||
| Total equity | 509 071 | 503 772 | 496 895 | 498 190 | |||
| Long term interest bearing liabilities | 11 905 | 13 624 | 11 640 | 11 236 | |||
| Long term lease liabilities | 57 707 | 21 305 | 25 483 | 25 972 | |||
| Deferred tax liabilities | 28 419 | 7 874 | 26 600 | 8 720 | |||
| Total long term liabilities | 98 031 | 42 804 | 63 723 | 45 928 | |||
| Short term interest bearing liabilities | 31 539 | 3 435 | 23 354 | 4 768 | |||
| Short term lease liabilities | 19 646 | 11 647 | 14 547 | 16 086 | |||
| Accounts payable | 164 690 | 91 342 | 130 522 | 101 969 | |||
| Taxes payable | 1 219 | 14 557 | 5 933 | 11 717 | |||
| Other short term liabilities | 176 198 | 156 039 | 178 329 | 167 874 | |||
| Total short term liabilities | 393 292 | 277 020 | 352 686 | 302 415 | |||
| TOTAL EQUITY AND LIABILITIES | 1 000 395 | 823 596 | 913 304 | 846 533 |
| KNOK | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 YTD 2022 YTD 2021 | ||
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Operating revenue continued operations | 345 884 | 320 849 | 300 679 | 284 181 | 196 363 | 967 412 | 697 157 |
| EBITDA continued operations | 20 669 | 9 813 | 11 505 | 20 062 | 7 953 | 41 986 | 33 563 |
| EBITA continued operations | 14 446 | 3 995 | 6 505 | 14 499 | 3 316 | 24 945 | 20 408 |
| Operating profit EBIT continued operations | 10 228 | 1 387 | 4 754 | 12 782 | 1 409 | 16 369 | 14 723 |
| Ordinary profit before tax (EBT) continued operations |
9 911 | 7 305 | 3 514 | 10 889 | -452 | 20 729 | 15 010 |
| Profit/loss after tax continued operations | 8 033 | 5 274 | 3 171 | 9 513 | -345 | 16 478 | 12 844 |
| EBITDA-margin | 6.0% | 3.1% | 3.8% | 7.1% | 4.1% | 4.3% | 4.8% |
| EBT-margin | 2.9% | 2.3% | 1.2% | 3.8% | -0.2% | 2.1% | 2.2% |
| Balance sheet | |||||||
| Non-current assets | 376 906 | 341 930 | 228 508 | 254 921 | 240 026 | 376 906 | 240 026 |
| Current assets | 623 488 | 571 373 | 616 449 | 591 612 | 583 570 | 623 488 | 583 570 |
| Total assets | 1 000 395 | 913 304 | 844 957 | 846 533 | 823 596 1 000 395 | 823 596 | |
| Total equity | 509 071 | 496 895 | 492 200 | 498 190 | 503 772 | 509 071 | 503 772 |
| Total long term liabilities | 98 031 | 63 723 | 49 445 | 45 928 | 42 804 | 98 031 | 42 804 |
| Total short term liabilities | 393 292 | 352 686 | 303 312 | 302 415 | 277 020 | 393 292 | 277 020 |
| Working capital | 371 147 | 355 461 | 287 620 | 284 913 | 261 191 | 371 147 | 261 191 |
| Equity ratio | 50.9% | 54.4% | 58.3% | 58.9% | 61.2% | 50.9% | 61.2% |
| Liquidity ratio | 158.5% | 162.0% | 203.2% | 195.6% | 210.7% | 158.5% | 210.7% |
| Net interest bearing debt | 66 939 | 24 555 -141 462 -116 136 -136 145 | 66 939 | -136 145 | |||
| Net leverage multiples | 1.08 | 0.50 | -2.75 | -2.17 | -2.55 | 1.08 | -2.55 |
| Cash Flow | |||||||
| Cash flow from operational activities | 4 008 | -37 317 | 11 851 | 6 975 | 180 605 | -21 458 | 222 707 |
| Net change in liquid assets | 2 775 -146 502 | 21 840 | -11 695 | 162 580 | -121 887 | 111 612 | |
| Share information | |||||||
| Number of shares | 44 888 352 44 888 352 44 376 040 44 376 040 44 376 040 44 888 352 44 376 040 | ||||||
| Weighted average shares outstanding | 44 740 494 44 080 320 43 723 395 44 016 397 44 172 852 44 185 129 44 249 732 | ||||||
| EBT per shares continued operations | 0.22 | 0.17 | 0.08 | 0.25 | -0.01 | 0.47 | 0.34 |
| Earnings per share continued operations | 0.18 | 0.12 | 0.07 | 0.22 | -0.01 | 0.37 | 0.29 |
| Earnings per share. adjusted * | 0.27 | 0.18 | 0.11 | 0.26 | 0.04 | 0.57 | 0.42 |
| Equity per share | 11.38 | 11.27 | 11.26 | 11.32 | 11.40 | 11.52 | 11.38 |
| Dividend per share | 0.80 | 0.80 | 0.70 | ||||
| Employees | |||||||
| Number of employees (end of period) | 517 | 513 | 418 | 400 | 402 | 517 | 402 |
| Average number of employees | 515 | 451 | 409 | 401 | 401 | 458 | 437 |
| IFRS 16 effects continued operations | |||||||
| Reduced OPEX | 5 179 | 4 685 | 4 107 | 4 003 | 3 658 | 13 971 | 10 256 |
| Increased depreciation | 4 310 | 4 489 | 3 915 | 3 679 | 3 518 | 12 714 | 9 796 |
| Increased interest expenses | 869 | 197 | 192 | 325 | 140 | 1 257 | 460 |
| EBT | - | - | - | - | - | - | - |
| Cash flow from operational activities | 5 179 | 4 685 | 4 107 | 4 003 | 3 658 | 13 971 | 10 256 |
| Cash flow from financing activities | -5 179 | -4 685 | -4 107 | -4 003 | -3 658 | -13 971 | -10 256 |
| KNOK | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | Year 2021 |
|---|---|---|---|---|---|
| Ordinary profit before tax continued operations | 9 911 | -452 | 20 729 | 15 010 | 25 899 |
| Ordinary profit before tax discontinued operations | - | 165 945 | - | 170 097 | 169 755 |
| Net interest | 1 477 | 363 | 1 823 | 1 598 | 1 935 |
| Tax paid | -3 283 | -282 | -12 398 | -1 990 | -17 856 |
| Share of profit, associated companies | -263 | 27 | -399 | -96 | -175 |
| Ordinary depreciation | 10 441 | 7 026 | 25 618 | 26 151 | 33 431 |
| Profit / loss on sale of fixed assets | -37 | -2 | -47 | -795 | -793 |
| Change in inventories | -36 355 | -28 600 | -19 081 | -60 955 | -74 046 |
| Change in receivables | -10 205 | 59 062 | -56 336 | 61 249 | 34 601 |
| Change in accounts payable | 33 324 | -15 535 | 25 521 | 10 653 | 22 673 |
| Change in other accrued items | -1 001 | -6 947 | -6 888 | 1 785 | 30 057 |
| Cash flow from operational activities | 4 008 | 180 605 | -21 458 | 222 707 | 225 483 |
| Payments for fixed assets | -1 158 | -1 655 | -7 849 | -9 324 | -8 794 |
| Investments in other companies | - | 1 000 | - | -3 071 | -3 001 |
| Payment from sale of fixed assets | - | -5 | - | 757 | 738 |
| Net effect acquisitions | -25 | - | -85 309 | -4 200 | -4 200 |
| Net effect divestment | - | 196 913 | 19 641 | 196 913 | 199 888 |
| Dividends received from associated companies | - | - | - | 100 | 100 |
| Interest income | 48 | 96 | 589 | 145 | 300 |
| Cash flow from investment activities | -1 135 | 196 349 | -72 928 | 181 319 | 185 033 |
| Purchase/sale of own shares | -2 411 | 311 | -3 312 | -3 860 | -13 635 |
| Change in long-term debt | -5 708 | -16 636 | -15 411 | -53 650 | -55 598 |
| Change in overdraft | 9 546 | -197 590 | 28 626 | -202 112 | -208 080 |
| Interest expenses | -1 525 | -459 | -2 412 | -1 743 | -2 235 |
| Dividend paid | - | - | -34 991 | -31 050 | -31 050 |
| Cash flow from financing activities | -98 | -214 374 | -27 500 | -292 415 | -310 598 |
| Net change in liquid assets | 2 775 | 162 580 | -121 887 | 111 612 | 99 917 |
| Cash and cash equivalents at the start of the period | 50 470 | 23 589 | 174 198 | 75 007 | 75 007 |
| Effect of foreign exchange rate fluctuations on foreign currency deposits |
612 | -12 | 1 546 | -463 | -727 |
| Cash and cash equivalents at the end of the period | 53 858 | 186 156 | 53 858 | 186 156 | 174 198 |
| Cash and cash equivalents at the end of the period discontinued operations |
- | - | - | - | - |
| Cash and cash equivalents at the end of the period continued operations |
53 858 | 186 156 | 53 858 | 186 156 | 174 198 |
June 1, 2022, StrongPoint ASA acquired 100% of the shares in Air Link Group Ltd with subsidiaries. UK has been identified as a very interesting market for StrongPoint solutions. The online grocery penetration is ALS has 25 years of experience handling installation, service, construction and refurbishment for large grocery
higher than in the rest of Europe, putting constantly pressure on the profit margins in the brick-and-mortar stores retailers in UK and Ireland. In the 2025 strategy, sale of StrongPoint solutions to the area was included, but it was estimated that the installation and service were to be handled by a sub-supplier. The ALS acquisition enables StrongPoint to include this revenue as part of the 2025 ordinary business. The acquisition will enable StrongPoint to have access to the largest grocery retail customers, making it easier to access and sell the solutions with comfort that the business critical systems will be supported by on-the-ground resources.
The acquisition analysis is based on preliminary figures per 31 May 2022.
Allocation of excess values related to acquisition in 2022 distributed as follows:
The acquired companies contributed with the following revenue and profit before tax for the period between the acquisition and 30.09.2022:
Proforma: If the acquisitions had been completed as at 01.01.2022, the Group's total revenue and ordinary profit before tax had been:
There are identified intangible assets related to customers of KNOK 56,000 and branding of KNOK 10,000. The intangible assets for customers will be written off over 7 years and 5 years for branding.
Included in the value of goodwill is employees with special skills and expected synergies with StrongPoint's existing business. These intangible assets do not meet the recognition criteria in IAS 38 and are therefore not recorded separately. Recorded goodwill is allocated to the cash-generating unit ALS. Goodwill is not amortized but subject to impairment tests annually.
| KNOK | |
|---|---|
| Revenue | 140 673 |
| Profit before tax | 19 686 |
| KNOK | |
|---|---|
| Revenue | 1 085 710 |
| Profit before tax | 24 223 |
The condensed and consolidated quarterly financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The quarterly financial statements do not contain all the information required in an annual financial statement and should be read in connection with the Group financial statements for 2021.
The accounting principles for the report are described in note 2 in the annual financial statements for 2021. The Group financial statements for 2021 were prepared in accordance with the IFRS principles and interpretations thereof, as defined by the EU, as well as other disclosure requirements pursuant to the Norwegian Accounting Act and the Oslo Stock Exchange regulations and rules applicable as at 31.12.2021. The quarterly report and the interim financial statements have not been revised by auditor.
*) Service and licenses
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | Year 2021 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | Re venue |
EBIT DA |
EBT | Re venue |
EBIT DA |
EBT | Re venue |
EBIT DA |
EBT | Re venue |
EBIT DA |
EBT | Re venue |
EBIT DA |
EBT |
| Nordics | 154.3 11.6 10.1 139.1 15.8 13.4 561.3 49.2 | 44.1 491.0 56.0 48.8 | 695.5 77.0 66.0 | ||||||||||||
| Rest of Europe incl. R&D |
191.6 18.4 | 9.1 | 57.3 | -2.5 | -6.6 406.1 25.7 | 5.9 212.4 | 2.3 | -9.7 | 293.1 14.6 | -1.9 | |||||
| ASA/Elim | - | -9.3 | -9.3 | - | -5.4 | -7.3 | - -32.9 -29.2 | -6.2 -24.8 -24.1 | -7.2 -38.0 -38.2 | ||||||
| Total | 345.9 20.7 | 9.9 196.4 | 8.0 | -0.5 967.4 42.0 | 20.7 697.2 33.6 15.0 | 981.3 53.6 25.9 |
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | Year 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MNOK | New sales |
Service * | New sales |
Service * | New sales |
Service * | New sales |
Service * | New sales |
Service * | ||
| Nordics | 96.1 | 58.2 | 77.3 | 61.7 | 375.8 | 185.5 | 303.5 | 187.5 | 442.7 | 252.9 | ||
| Rest of Europe incl. R&D |
51.8 | 139.9 | 33.4 | 23.9 | 181.1 | 225.0 | 154.4 | 58.0 | 195.6 | 97.5 | ||
| Elim / ASA | - | - | - | - | - | - | -6.2 | - | -7.2 | - | ||
| Total | 147.8 | 198.0 | 110.7 | 85.7 | 556.9 | 410.5 | 451.7 | 245.5 | 631.1 | 350.3 |
No significant transactions between the Group and related parties had taken place per 30 September 2022.
| No. | Name | No. of shares | % |
|---|---|---|---|
| 1 | STRØMSTANGEN AS | 3 933 092 | 8.76 |
| 2 | SOLE ACTIVE AS | 2 221 717 | 4.95 |
| 3 | HSBC BANK PLC | 1 976 000 | 4.40 |
| 4 | V. EIENDOM HOLDING AS | 1 865 000 | 4.15 |
| 5 | PICTET & CIE (EUROPE) S.A. | 1 641 821 | 3.66 |
| 6 | NORDNET BANK AB | 1 516 001 | 3.38 |
| 7 | ZETTERBERG, GEORG (incl. fully owned companies) | 1 360 000 | 3.03 |
| 8 | AVANZA BANK AB | 1 268 096 | 2.83 |
| 9 | RING, JAN | 1 176 648 | 2.62 |
| 10 | VERDADERO AS | 929 415 | 2.07 |
| 11 | VERDIPAPIRFONDET DNB SMB | 887 033 | 1.98 |
| 12 | EVENSEN, TOR COLKA | 840 900 | 1.87 |
| 13 | WAALER AS | 780 300 | 1.74 |
| 14 | HAUSTA INVESTOR AS | 700 000 | 1.56 |
| 15 | JOHANSEN, STEIN | 570 000 | 1.27 |
| 16 | MP PENSJON PK | 561 402 | 1.25 |
| 17 | BNP PARIBAS SECURITIES SERVICES | 535 540 | 1.19 |
| 18 | ALS KINGFISHER LIMITED ² | 506 156 | 1.13 |
| 19 | EUROPEAN RETAIL ENGINEERING LIMITED ² | 506 156 | 1.13 |
| 20 | MORGAN STANLEY & CO. INTERNATIONAL | 439 909 | 0.98 |
| Sum 20 largest shareholders | 24 215 186 | 53.95 | |
| Sum 2 512 other shareholders | 20 673 166 | 46.05 | |
| Sum all 2 532 shareholders | 44 888 352 | 100.00 |
| Total costs and Social Security Provisions | 2020 | 2021 Q1 2022 Q2 2022 Q3 2022 | Total | |||
|---|---|---|---|---|---|---|
| Total IFRS cost | 440 | 5 441 | 1 143 | 1 735 | 2 041 | 10 801 |
| Total Social security provisions | 36 | 737 | - 296 | - 477 | 61 | 61 |
| Granted instruments Activity |
Number of instruments |
Weighted Average Strike Price |
||||
| Outstanding OB (01.01.2022) | 2 075 000 | 24.14 | ||||
| Granted | 1 100 000 | 22.71 | ||||
| Exercised | - 50 000 | 17.31 | ||||
| Terminated | - 125 000 | 17.31 | ||||
| Outstanding CB (30.09.2022) | 3 000 000 | 24.01 | ||||
| Vested CB | - 212 500 | 17.31 |
¹ The shares to ALS Kingfisher Limited and European Retail Engineering Limited have not yet been issued to their VPS accounts. ² The issuance of 512,312 new shares were registered with the Norwegian Register of Business Enterprises 04 June 2022. These shares have not been registered in VPS yet, but are included here.
| KNOK | Q3 2021 | YTD 2021 | Year 2021 |
|---|---|---|---|
| Operating revenue | 10 324 | 110 144 | 110 144 |
| Cost of goods sold | 4 635 | 53 177 | 53 177 |
| Payroll | 2 043 | 31 766 | 31 766 |
| Other operating expenses | 930 | 9 690 | 9 690 |
| Total operating expenses | 7 607 | 94 633 | 94 633 |
| EBITDA | 2 717 | 15 512 | 15 512 |
| Depreciation tangible assets | 481 | 7 090 | 7 090 |
| Depreciation intangible assets | - | 221 | 221 |
| EBIT | 2 235 | 8 201 | 8 201 |
| Interest expenses | 21 | 339 | 339 |
| Other financial expenses/currency differences | - | 1 495 | 1 495 |
| Profit on sale of discontinued operations | 163 731 | 163 731 | 163 389 |
| EBT | 165 945 | 170 097 | 169 755 |
| Taxes | 490 | 1 337 | 1 337 |
| Profit from discontinued operations | 165 455 | 168 760 | 168 418 |
StrongPoint Labels reporting segment was announced divested in June 2021. The Swedish part of the transaction was closed July 1, and the Norwegian part was closed September 1. Following IFRS, the financial figures for the reporting segments are reported as "Profit from discontinued operations" below tax in the financial statement and removed from the comparison figures in other tables.
StrongPoint ASA | Slynga 10, 2005 Rælingen | strongpoint.com
| Working capital | Inventories + accounts receivables – accounts payable |
|---|---|
| Equity per share | Book value equity / number of shares |
| Operating revenue | Sales revenue and profit from AC, Service companies |
| EBITDA | Operating profit + depreciation fixed assets and intangible assets |
| EBITA | Operating profit + amortization of intangible assets |
| EBIT | Operating profit |
| EBITDA-margin | EBITDA / operating revenue |
| EBT | Profit before tax |
| EBT-margin | EBT / operating revenue |
| Equity ratio | Book value equity / total assets |
| Liquidity ratio | Current assets / short term debt |
| Earnings per share | Profit after tax / number of shares |
| Diluted | Number of shares minus own shares plus shares granted in share option program |
| Earnings per share adjusted | Profit after tax + amortization of intangible assets / number of shares |
| Net leverage multiple | Net Debt / 12 months rolling operating revenue |
| Net change in liquid assets | The total changes in cash flow from operational activities, investment activities and financing activities |
| Discontinued operations | Divested Cash Security reporting segment December 2020. Divested Labels reporting segment Q3 2021. |
The fair value of share options granted is estimated at the date of grant using the Black-Scholes-Merton Option Pricing Model. The model uses the following parameters; the exercise price, the life of the option, the current price of the underlying shares, the expected volatility of the share price, the dividends expected on the shares, and the risk-free interest rate for the life of the option.
The vesting of the options is dependent on the participant still being employed at Strongpoint at the time of the vesting.
All StrongPoint ASA options are intended to be settled in equity, but in the event that the Company is not capable of delivering Shares following an exercise of Options, the Company shall fulfil its obligations under this Agreement through a cash-out.
The options will vest over three years, with 1/4 vesting after one year, 1/4 after two years, and the remaining 2/4 after three years. The split in vesting underpins the retention ambition of the program. Any non-exercised options expire five years after grant.
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