Okay, so good morning, everybody, and welcome to Doro's Presentation of its Q3 Interim Report. We have an agenda this morning that looks a bit. Well, I'll show you that in a second, actually. So obviously, the normal disclaimer around our forward-looking statements. Give you a second to quickly read that before we move on. Okay, nothing unusual there. So the agenda for today, we'll talk you through, as usual, our key highlights. We'll then dig a little bit deeper into the third quarter, specifically, and then we'll end with some an open mic session with questions and answers. If everybody could be on mute for now, and then, when we get to the Q&A session, you'll have to obviously come off mute so that we can actually have the questions. Okay, so let's talk first around the key highlights for the quarter. So firstly, Q3 was a challenging quarter in terms of top-line sales. That's not coming entirely as a surprise to us, because we're always going to be in the position where we'd be selling through stock in trade ahead of launching a new range of feature phone products in Q4. We also had an effect, as you may remember, back when we presented Q2, that some of our customers in France had pulled forward the orders from the first half of July into June in anticipation of increased fees associated with the WEEE criteria, which is fees paid for recycling of electrical components. So we always knew that we were having some headwind going into this quarter. And on top of that, there were some exceptional sales one-offs in Q3 of last year, which made Q3 last year extraordinarily strong. So we knew we were heading into a tough quarter on quarter. Now, when you actually look or dig behind the numbers and you look a bit deeper, what we actually see is that a much better picture. We've actually increased market share in Q3 versus where we ended Q2, according to the sell-out data that we used to track sell-out via GfK. We continue, therefore, to outperform the market when it comes to feature phones. As I say, we're growing share in our markets. Now, we've also started now shipping the new Leva range of products, and we're in the final stages of planning for a media campaign to support this launch. Beyond top-line sales, as you will see, we actually have the business is in. And I think I mentioned this last time on my first call. Beyond the top-line sales, the business is really quite robust. We continue to perform well when it comes to margins, and as you'll see, we have over 50% margin for the quarter. Now, while that is boosted by some one-off events, there continues to be a structural improvement in the margins that, and I say a structural improvement, so this isn't something that's just going to disappear. This will continue to be something that the business is capable of delivering on. Now, where's that coming from? It's coming from, again, year on year, we see, you know, a continued strong performance of our 4G products versus 2G. That's not something that we feel is going to go away, especially as 2Gs will be turned off over the coming years, market by market. Obviously, the timing is slightly different. And we're also seeing a continued growth and strong growth in our D2C business. So we see some very strong performance that structurally is going to improve or maintain and improve our margins for the long term. As mentioned, there are a number of one-off margin improvements as well, which associated with the release of provisions for royalties. And again, in relation to overall operationally, how strongly the team are controlling operating expenses, inventory, which has been depreciated through, you know, through the sell-out of old stocks. So we're in a very healthy position when it comes to the operations of the business and the margins that we deliver. So my focus, the focus of the team, is now on driving a transformation, a sort of a commercial transformation of the business. That started with a process over the my first three months, where I've engaged with everyone across the business. We've sat down and we've talked an awful lot around where, you know, our strategy, and what things we may wish to change with that. We've had those discussions and an alignment on a revised strategic direction with the board. Not talking about a major, complete change in strategic direction, but a refinement of our strategic direction with the board. And we've then engaged with a number of strategic partners, helping us on consumer insight, brand communications, media planning, and we've kicked off a brand restage project so that we can- we're preparing ourselves to be able to invest heavily behind building the brand, building the business, as we go forward. We've also begun recruitment during Q3 of key commercial roles to strengthen the team. So if we look a little bit more depth into the third quarter and the performance by the market, you can see that, you know, all the markets have had, as I mentioned at the start of the call here, some headwind going into, and where we see the sort of like the biggest headwind really is in the Nordics, where sales are SEK 49 million. They were actually up versus where we ended Q3, so sorry, Q2. So Q3 was stronger than Q2, but it was a drop of 30% versus last year. Now, the main driver of this is there was an exceptional quarter, this in Q3 2023 for our B2B business, where we supplied DECT phones to replace landlines as operators were closing some fixed line services. This was a one-off event that we took advantage of last year. And in the Nordics, what we see, as I mentioned, about the increase in market share in the Nordics, you know, despite having significant market share in the Nordics on our feature phones, we managed to still increase our market share by volume by 0.5 points versus the position at the end of June. In UK and Ireland, we see a stronger performance. Here we see very strong performance of our D2C business, for example, where it's growing fastest. Our net sales are SEK 47 million. That's up nearly SEK 6 million versus the previous quarter, but it's still a decrease year on year of almost 7%. So here we see that the market share on volume has actually increased almost 1 point versus where we were at the end of June. So again, we're managing to grow the business relative to where the market is. So it's not that there's a... There's definitely sort of a retained relevance of the Doro brand and Doro's products in the market. If we turn our eyes towards, you know, the Western and Southern Europe, mainly as sort of a, our business in France is the biggest part of this. The net sales were SEK 86 million, which is almost the same as what we delivered in Q2. You know, remember, in Q2, we had orders pulled forward from the first half of July, which obviously strengthened Q2 a little and softened Q3, and then here we probably see the biggest effect from the launch of our Leva range being in Q4 versus the launch of the new feature phones last year happening during Q3. So again, here, the market, our market share in France is flat versus where we were at the end of June. But if you compare to where we were at the end of Q3 last year, which, as we say, it was a very strong year in this region, we're actually up nearly 4 points versus where we were this time last year. So once again, we're performing well in terms of where the market is. Looking at Central and Eastern Europe, here, really, our German business is our, you know, key strategic priority in building and driving that, obviously. The opportunity in Germany is significant. So here is a major focus for us to strengthen. You know, we've retained IVS as part of the Doro Group with our restructuring of operations, so that we can focus more and more on Doro-branded products. Now, here what we see is an increase of almost 5 or over SEK 5 million versus Q2, delivering SEK 35 million. Here we're starting to build more momentum back into our German business, although this does remain still a decrease on last year. Last year, there were far more non-Doro products being sold. What we're seeing is that there's a base here of growth on the core business. Again, the market share in Germany versus the end of Q2 is actually up 0.7 points. So again, we're seeing momentum when it comes to our market share position in the DACH region as well, or in, sorry, in Germany. I won't say across the whole region. That's not true, so it's 0.7 points up in Germany. So, that's sort of the in-depth dive into the different markets, and I'll hand over to Isabelle. Yes, thank you. So some more numbers. Net sales, as Julian mentioned, SEK 117.7 million, so that's quite a big decrease versus quarter three last year. We could also add perhaps that the transition to the new category this year has been a bit more difficult than last year, when we shift from 2G to 4G, because we have this hard stop of the deadline, end of December, with the new directive for the USB-C. So we were really careful in not having a high inventory of product that would not be compliant. Therefore, the transition was a bit more complex to handle. If we look at the gross margin, however, this has improved a lot, from 43.4% to 50.3%. Like the previous quarters, the portfolio mix continued to be favorable, but we had some one-offs that Julian mentioned. However, I also want to point out that this good margin has been a steady trend for the last quarters, and it's the result of continuous effort to optimize the supply chain, to keep the inventory low, to minimize the return of products, and therefore, the warranty costs by working on the quality of the product and challenging the license agreements. Our fixed costs, they were more or less comparable to last year, even though we have started investing in the brand. We had quite a significant saving from the IFA telecom fair in Berlin, where we had some presence this year, too, but we managed it in a different way, much more cost-effective. The EBITDA landed at SEK 40.5 million, compared to SEK 48.4 million last year. The EBIT was SEK 30.3 million, compared to SEK 38.9 million, and our EBIT in percentage of sales was at 13.9%. Last year was 14.3%. The profit after tax ended up at SEK 24.2 million, compared to SEK 22 million last year, giving earnings per share of SEK 4.99, compared to SEK 4.90. Next slide to the cash flow. The cash flow from operating activities for SEK 46.8 million, compared to SEK 73.8 million last year. I think it still is a very good cash flow. It comes from a good EBITDA and an improvement of the working capital, even though this improvement was less dramatic than the same quarter last year. We had a bit more investments this quarter, SEK 9.3 million versus SEK 7.3 million, and the free cash flow for the quarter was SEK 37.5 million, compared to SEK 65.8 million last year. Looking at the cash position, cash and cash equivalent at the end of the quarter were SEK 215 million, compared to SEK 167.4 million last year, and the equity ratio was 58.5% versus 55.99% last year. We finished the quarter in a net cash position of SEK 200.2 million. It's an increase compared to previous quarter, where the net cash position was SEK 163.7 million, and also it's an increase compared to same quarter last year, when we had a net cash position of SEK 135.3 million. Back to you, Julian. Okay. So, that concludes the presentation element. Back, and so, if anybody has any questions, we can come off mute and answer any questions that are out there. Good morning. Do you hear me? Yes. Yes. Who do we have talking? This is Fredrik Reuterhäll from Redeye. Yes. Hey, Fredrik. Hi. I have a couple of questions. You talk about the delay of the Leva feature phones, but I mean, you- Mm-hmm. ... said you were going to make the product available in October, but I just want to make sure that it's gonna be with all your partners ahead of Black Week and the Christmas holidays, right, in all regions. So the product should be out with all customers by then. Some of these things are not always in our control. So when, for instance, it comes to operators, operators themselves need to certify our products. So the product's ready. It's being shipped. It's ready to go. We are somewhat reliant on external parties doing their part of the job as well. So all being well and good, yes, it should be out and ready for Black Friday. Okay, and can you say something about if this is not happening? I mean, how much will it affect your sales? It's how long is a piece of string, Fredrik? I mean, if it's one customer, if it's a small customer, a big customer, many customers, that's a very difficult question to give you a specific answer on. But I mean, at the moment, our confidence remains high that that's not going to be an issue. So, you know, our major customers have already certified, so it shouldn't be a big issue. Okay, good. And regarding the gross margin. Mm-hmm ... you talked about it was boosted by the royalty payment and inventory depreciation. Can you specify how many percentage points the effect was? So I can calculate more or less the correct- Uh. ... margin. Is it there? Is that something that we- In percentage. ... prepared to comment on? Yeah. It was probably a couple of million, so what does it make in percentage? Okay. I will need to give you- And then- ... to come back to you with a real percentage number if you want it. Okay, thank you. And then on marketing spending, you spent pretty low in this quarter, and I guess you will increase the marketing spend quite a bit in Q4, right? Yes. So as I mentioned, we have kicked off a brand restage project. We've engaged with some other good agencies that are able to give us the appropriate type of support. And we're making very good progress on that particular project. So we have a brand restage project that will probably run through to the end of Q1, and in the meantime, we're using the initial insights and work that we're doing off that to build marketing assets for a new type of advertising that we've not done for a long time, should we say, at least for a very long time, for the launch of the Leva range. You might well imagine that it's difficult to buy media at this stage of the year for the Q4, like should we say, traditional big media like TV or out-of-home or print or any of those things, largely because it's fully booked, so what we've been planning for is a strong digital campaign, and that will come live, different markets at different time, but probably from the middle of November onwards, and then we'll start spending obviously behind that. That will build momentum, not just for Q4, but that'll help us to build that momentum and take that momentum into Q1, where we'll continue to support the brand. Okay, thank you. And then my last question is the UK and Ireland, how it's holding up okay, I think, in the quarter. Can you talk more about- Yeah. ... what you're seeing in the market there going forward? Yeah. The U.K.'s got some really good momentum at the moment. We have particular tailwind, should we say, with a number of accounts where some competitors are struggling for supply, and that's enabling us to have, should we say, extra access to the market with than we've had in the past, so we'll take full advantage of that type of situation but in general, I think we're building a head of steam in the U.K., and again, when we start to advertise behind the brand more strongly, then we'll only be able to build and keep that momentum further. Okay, that was all for me. Thank you very much. Tore? I'm not sure if you're still on mute, Tore. I think it's better. Now that works. I was just wondering if you could provide some color on your outlook for the fourth quarter? It's difficult for us to.... You know, we don't tend to give sort of like forward-looking statements, as you're probably aware from previous calls, but you know, we... our focus remains on ensuring that we're filling all the pipelines with our Leva products, where we're... and then beginning our advertising campaigns behind those in order to drive sales, and then obviously, I mean, that's the sales outlook. The other piece is that we're continuing to do this piece on the transformation, where we, you know, will be engaging hopefully some new commercial staff that will help strengthen the team so that we're building also more ahead for 2025. Nothing- there's nothing major to flag either up or down at this point in time on, on Q4, though, when it comes to, sales performance. Thank you. Any other questions? Okay. Well, then, I will consider that we have completed the call for today. Yes, thank you. Yes. Okay. Bye. Thank you very much for your attendance. Thank you. Yeah, thank you. Good luck. Bye-bye. Thank you.
Loading workspace