Doro, the Swedish consumer electronics and assistive technology company, has recorded earnings results for the second quarter.
The news comes as it forges ahead with plans to separate the company into two businesses – Doro Phones and Doro Care – and to become a European leader in tech-enabled care.
The company’s net sales amounted to SEK 406.9m (£34m), an increase of 22.4%.
Operating profit, excluding restricting costs and costs for the listing of Doro Care, stood at SEK 30.8 million, an improvement of 295% compared to the same quarter last year, while profit after tax for the period was SEK 12.9 million, down 3.3%.
Doro CEO Carl-Johan Zetterberg said: “The second quarter continued to be defined by an increased activity in our markets as restrictions eased. We have delivered good organic growth in both business areas, where Doro Care has gained new market shares in Sweden and Doro Phones had a strong quarter in several of its markets.
“At the end of the last quarter, we initiated the last part of our restructuring program and during the quarter we continued to work with the restructuring of Germany. We have, since the restructuring was announced, successfully reduced our operating costs in order to ensure long-term profitability. In the coming quarters, we will complete the last activities in the program, and we will achieve the communicated savings of 110–130 million SEK compared with 2019 levels. In addition to an improved cost base, the restructuring has created opportunities for us to work with greater focus and increased competitiveness.”
Preparations to separate the business into two listed companies are in full progress with the goal of being able to carry out the listing during the fourth quarter of 2021.
Zetterberg explained: “The work is proceeding according to plan, and we have confidence in being able to complete the listings this year. The separation aims to increase long-term shareholder value, by enabling the businesses to realise their strategies more favourably, with better conditions and greater focus on the individual business area.”
The ambition to become European market leader in technology enabled care will continue to be the goal for Doro Care, according to Zetterberg.
He said: “New preventive solutions are necessary to handle a growing elderly population and we want to drive the digitalisation of the market forward. By developing our own welfare technology platform, we can offer more proactive solutions that makes this possible. Our main focus will still be to grow organically, streamline the operation and develop new technical solutions. In combination with this, we are continuously working on new acquisition opportunities as part of our strategy, on the way to become a market leader in Europe.”