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."