Doro (DORO) Q1 2025 earnings summary

Executive summary

• Net sales increased by 13.2% year-over-year to SEK 220.3 million, driven by strong performance of the new Leva feature phones and growth in most regions.

• Gross margin improved to 53.3% from 42.0%, aided by one-off royalty reserve reversals and favorable currency effects.

• EBITDA rose 37.0% to SEK 16.3 million, while EBIT increased 41.9% to SEK 4.4 million, with an EBIT margin of 2.0%.

• Profit after tax was SEK -3.2 million, impacted by negative net financial items mainly from currency revaluation.

• Free cash flow was SEK -15.0 million, reflecting higher investments and working capital outflows.

Outlook and guidance

• Management expects continued momentum with the launch of Aurora smartphones and increased marketing investments.

• No major direct impact from global trade instability is anticipated in the short term, but the situation is being closely monitored.

Segment performance

• Nordics sales grew 8.9% to SEK 51.2 million, outperforming a declining feature phone market.

• Western and Southern Europe sales rose 11.0% to SEK 89.0 million, with strong channel growth.

• Central and Eastern Europe sales declined 14.1% to SEK 24.9 million due to slow 4G adoption and customer inventory reductions.

• UK and Ireland sales surged 43.8% to SEK 55.2 million, supported by large retail orders for feature phones.