Interim Report no. 3 for Financial Year 2021

STOCKHOLM, SWEDEN / ACCESSWIRE / November 25, 2021 /

STRAX sales holding up, at the same time margin has come under pressure as a consequence of Covid-19 impact on the industry

• The Group’s sales for the period January 1 – September 30, 2021, amounted to MEUR 81.8 (76.7) with a gross margin of 16.2 (25.5) percent.
• The Group’s result for the period January 1 – September 30, 2021, amounted to MEUR -1.3
  (-0.9) corresponding to EUR -0.01 (-0.01) per share.
• EBITDA for the period January 1 – September 30, 2021, amounted to MEUR 2.7 (4.9).
• Equity as of September 30, 2021, amounted to MEUR 17.2 (17.5) corresponding to EUR 0.14 (0.14) per share.
• STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced Urbanista Los Angeles, the world’s first self-charging, wireless active noise cancelling headphones, powered by Powerfoyle™ solar cell material. Using advanced green technology, Los Angeles converts all forms of light, outdoor and indoor, into energy to deliver virtually infinite playtime.
• STRAX launched online only brand Dóttir, with new line of sports-focused true wireless headphones. The brand was developed with CrossFit champions Annie Thorisdottir and Katrin Davidsdottir.
• The first product, Dóttir Freedom On-Grid in-ear headphones has already been awarded the Red
  Dot Award for product design.

Significant events after the end of the period

• STRAX launched online only brand, grell, with the first product being true wireless headphones. The brand was developed with world-renowned sound engineer and headphone designer Axel Grell, who has crafted headphones to produce world-class sound for over three decades, most notably at Sennheiser.
• As a result of the compress margin during Q3, 2021, the group did not meet one of the financial covenants in the loan agreement with PCP as of September 30, 2021. After the end of the period a waiver for the breach was granted. The fact the waiver was granted after the end of the period has the effect under IFRS that the related interest-bearing debt is reported as current in the balance sheet as of September 30, 2021.

“Our sales have held up well and grown by 6.7% year-over-year (YoY). However, we continue to be affected by the Covid-19 pandemic and consequential industry dynamics on both the supply and demand sides, negatively impacting our contribution profit margin. On a more positive note, we have not experienced margin erosion on product level, and we expect that these challenging macro factors will start to normalize in 2022.”

Gudmundur Palmason, CEO

For further information please contact:

Gudmundur Palmason
CEO, STRAX AB, +46 8 545 017 50

About STRAX

STRAX is a global leader in accessories that empower mobile lifestyles. Our portfolio of branded accessories covers all major mobile accessory categories: Protection, Power, Connectivity, as well as Personal Audio. Our new Health & Wellness category offers branded Personal Protection products. Our distribution business reaches a broad customer base, through 70 000 brick and mortar stores around the globe, as well as through online marketplaces and direct-to-consumers.

Wholly owned brands include Urbanista, Clckr, Richmond & Finch, Planet Buddies, xqisit, AVO+, Dóttir and grell, and licensed brands include adidas, Bugatti, Diesel, Superdry and WeSC. Our distribution business also services over 40 other major mobile accessory brands.

Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand and distribution business. Today we have over 200 employees in 13 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.

This information is information that STRAX is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-11-25 08:55 CET.

Attachments

Interim report no. 3 for financial year 2021

SOURCE: STRAX

View source version on accesswire.com:
https://www.accesswire.com/674696/Interim-Report-no-3-for-Financial-Year-2021