OXE Marine AB (publ) Interim report 1 July to 30 September 2021
OXE Marine AB reported a strong third quarter for 2021, achieving a net turnover of SEK 26.2m, significantly up from SEK 3.4m last year. Gross profit also saw a rise to SEK 7.3m, enhancing the gross margin to 28%. The operating loss narrowed from SEK -25.1m to SEK -12.8m. Year-to-date performances indicated SEK 58.0m in turnover. The order book remained robust with EUR 11.1m at quarter-end. Notably, CEO Magnus Grönborg joined in July and a directed share issue raised SEK 22.8m to support production ramp-up.
- Net turnover increased to SEK 26.2m from SEK 3.4m year-over-year.
- Gross profit rose to SEK 7.3m, improving gross margin to 28%.
- Operating loss decreased to SEK -12.8m, an improvement from SEK -25.1m last year.
- Year-to-date net turnover reached SEK 58.0m, up from SEK 34.9m.
- Order book remains strong at EUR 11.1m or SEK 113m.
- Operating loss for the year remains substantial at SEK -47.0m.
- Net result for the period stands at SEK -54.1m, indicating ongoing financial challenges.
STOCKHOLM, Oct. 29, 2021 /PRNewswire/ -- Interim report
Third quarter (July - September 2021)
- Net turnover of SEK 26.2m (SEK 3.4m)
- Gross Profit of SEK 7.3m (SEK 0.8m) or gross margin of
28% (24% ) - Operating Loss/EBIT of SEK -12.8m (SEK -25.1m)
- Result for the period of SEK -15.2m (SEK -27.3m)
- Order book amounted to EUR 11.1m or SEK 113m at the end of the quarter
January – September 2021
- Year to date net turnover of SEK 58.0m (SEK 34.9m)
- Gross Profit of SEK 15.9m (SEK 4.4m) or gross margin of
27% (13% ) - Operating Loss/EBIT of SEK -47.0m (SEK -54.9m)
- Result for the period of SEK -54.1m (SEK -61.2m)
- Order book amounted to EUR 11.1m or SEK 113m at the end of the nine months
Significant events during the Third quarter
- Magnus Grönborg started as CEO of OXE Marine AB (publ) on 1 July 2021
- OXE Marine AB (publ) announced outcome of incentive program 2021/2025 and additional transfer of warrants of series 2019:2
- OXE Marine AB (publ) carried out a directed share issue of SEK 22.8m
Significant events after the reporting period
- No significant events after the reporting period.
Focus on execution
The third quarter was characterised by an intense focus on delivering results according to plan, with excellent operational execution. OXE managed to increase sales and improve gross profit compared to second quarter 2021, plus generate highest sales in a quarter for Parts & Accessories.
During the quarter net sales increased
Order intake amounted to SEK 11m during the quarter and the Order Book amounted to SEK 113m at the end of the quarter. We saw a healthy increase in end-user demand to distributors, in particular, a significant project in the Philippines where the Bureau of Customs will be supplied with 62 pcs of OXE150 in a series of three batches.
A directed share issue of SEK 22.8m was carried out during the quarter in order to support an escalated ramp up of capacity at suppliers. The share issue was subscribed for by a smaller group of the largest existing shareholders without discount to the prevailing market price, demonstrating the confidence and support we continue to receive from our main shareholder base.
The quarter was challenging from a component availability perspective, but through strong operational execution, we were able to accelerate output of the OXE300, despite fewer production days in the third quarter vs the second quarter of 2021.
To safeguard quality, each engine produced has been brought to OXE in Sweden for additional validation at sea before shipment to customer. While this has been an important step in ensuring quality, from an operational point of view, this has also been a bottleneck towards ramping up production.
During the fourth quarter we are pleased to announce that we have commenced direct shipments to customers. This step will enable further ramp up of production in the fourth quarter as well as indicating that we have reached a stable production setup with quality control, assembly, testing and packing fully transferred to our Polish partner. The relation with our Polish assembly partner was further deepened by assigning them to also take over selected procurement and holding of component inventory for the OXE300.
At our assembly partner in the US, we have seen good progress and strengthened collaboration. We have maintained a limited but quality-focused output to meet short term demand while we plan for further ramp up.
We have invested significantly in our supply chain footprint over the past 6 months, both in modular assembly as well as in hard tooling. In addition, we have signed up two key roles during the quarter. As of October 1st, Paul Kroksmark will join as Supply Network Director as well as a new quality manager joining OXE during the fourth quarter.
Magnus Grönborg
Chief Executive Officer
This disclosure contains information that OXE Marine AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 29-10-2021 11:00 CET.
Contact:
Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ). Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail info@fnca.se.
For further information, please contact:
Magnus Grönborg, CEO, magnus.gronborg@oxemarine.com, +46 76 724 73 00
Anders Berg, Chairman, anders.berg@oxemarine.com, +46 70 358 91 55
OXE Marine AB (publ) (NASDAQ STO: OXE), (OTCQX: CMMCF) has, after several years of development, constructed the OXE Diesel, the world ́s first diesel outboard engine in the high-power segment. OXE Diesel has a unique belt driven propulsion system that allows a hydraulic multi-friction gearbox to be mounted. This means that the engine can handle significantly higher loads than a traditional outboard engine. OXE ́s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.
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The following files are available for download:
Q3 2021 INTERIM REPORT | |
https://news.cision.com/oxe-marine-ab/i/q3-2021-interim-report,c2973604 | Q3 2021 INTERIM REPORT |
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SOURCE OXE Marine AB
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