Hövding year-end report 2021

HÖVDING YEAR-END REPORT 2021
October - December 2021

A year of transformation

Financial results for the quarter

• Number of Hövding helmets sold 29,353 (33,854) (-13%)
• Net sales TSEK 50,284 (52,759) (-5%)
• Gross margin 32% (24%)
• EBITDA TSEK –9,098 (-5,708)
• Profit before tax TSEK –9,934 (-7,387)
• Profit per share SEK -0.36 (-0.27)
• Cash flow before changes in working capital TSEK -9,418 (-4,237)
• Cash flow after changes in working capital TSEK 19,173 (-8,364)
• EBITDA includes items of a non-recurring nature amounting to 5,679 TSEK. These are related to the CEO change and the exit deal with the former German distributor.

Financial results full year

• Number of Hövding helmets sold 96,239 (96,561) (-0%)
• Net sales TSEK 161,686 (152,517) (+6%)
• Gross margin 30% (23%)
• EBITDA TSEK -23,527 (-38,558)
• Profit before tax TSEK -27,680 (-44,247)
• Profit per share SEK -1.00 (-1.82)
• Cash flow before changes in working capital TSEK -22,650 (-39,485)
• Cash flow after changes in working capital TSEK -25,395 (-43,160)
• EBITDA includes items of a non-recurring nature amounting to 6,929 TSEK. These are related to the CEO change and the exit deal with the former German distributor.

CEO Sofia Svensson commented:

"In 2021, Hövding has undergone major changes operationally as well as financially. The changes have resulted in an improved gross margin and lower fixed costs in relation to sales. 

The number of Hövdings sold in the fourth quarter decreased 13% compared to last year, explained by weaker Christmas sales than expected. We therefore enter 2022 with higher reseller stock levels than usual.

During the fourth quarter, two non-recurring items are reported in the form of a final agreement with the former German distributor and costs for the CEO change, which totals SEK 5.7 MSEK. EBITDA in the fourth quarter amounts to -9.1 MSEK, and adjusted for these non-recurring items, EBITDA would have been -3.4 MSEK.

It is with great confidence and humility that I have taken on the role as CEO of Hövding. The goal for 2022 is geographical expansion, to ensure Hövding's long-term growth ambitions. The focus is on Western Europe, where France and the Benelux are deemed to have similar conditions as Hövding's home markets Sweden and Denmark."

INFORMATION
Please direct any queries regarding the content of this interim report to:

CEO Sofia Svensson                       CFO Per Holmqvist
Ph: +46 40 236868                        Ph: +46 40 236868
sofia.svensson@hovding.com         per.holmqvist@hovding.com     

Hövding Sverige AB (publ)
Bergsgatan 33
214 22 Malmö
+46 40 236868

Hövding Sverige AB (publ) is listed on the Nasdaq First North Growth Market since 2015.
Västra Hamnen Corporate Finance AB is Hövding’s Certified Advisor.

E-mail: ca@vhcorp.se, tel: +46 40 200250

The information herein is provided by Hövding Sverige AB (publ) in accordance with its duties of public disclosure as stipulated by the EU Market Abuse Regulation and the Securities Markets Act. The information was made public by Sofia Svensson, CEO of Hövding Sverige AB (publ), on 18 February 2022 at 08.30am CET.

Attachment

• Hövding Sverige AB (publ) - Year End Report 2021