StrongPoint ASA: Third quarter 2023 financial results

“Uncertainty, inflation, and interest rates continue to dominate the news headlines across markets. As a consequence, we are observing households holding back spending. Although StrongPoint is fortunate to predominantly serve the stable and resilient grocery retail sector, our direct customers – the grocery retailers, continue to postpone investment decisions. Whereas the medium to long-term outlook for retail technology is very positive, the general investment pause currently negatively affects StrongPoint,” says Jacob Tveraabak, Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 293 million (346) in the third quarter of 2023 and an EBITDA of NOK 3.8 million (20.7). The third quarter EBIT was NOK - 5.1 million and EBT was NOK - 13.5 million. Cash flow from operating activities was NOK – 24.5 million (- 4.0).

“Although reaching our 2025 financial ambitions might seem difficult from the outside with the abovementioned general outlook and subsequent cost measures, we continue to stand behind these ambitions. The main reason for this, in addition to a capable underlying organization and well managed business, includes major projects that we still believe will materialize this autumn. Our ground-breaking cash management project in Iberia is such an example. Furthermore, I am very positive about a breakthrough in the UK with our solutions, as earlier communicated. My faith here is, in fact greater than ever before.” Tveraabak continues.

“We are convinced that technology will continue to play an important role going forward. This is both a megatrend that StrongPoint is ready for and very well positioned to ride. In sum, the outcome of these very exciting opportunities, in what for StrongPoint are relatively new and large markets, will define our further belief in achieving our 2025 financials ambitions,” Tveraabak concludes.

A link to a video presentation of the third quarter results is available, together with the report. There will be a live Q&A session via webcast at 10:30 CET.

In addition, the company's Extraordinary General Meeting will be held at 09:15 am CET.

The webcasts and video presentations will be available at https://www.strongpoint.com/investor/webcasts/

*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the third quarter 2023 financial report on page 25.