Strategy Update Session, First Quarter Financial Results 2024

“The start of 2024 continued much like the end of 2023: economic uncertainty and relatively high interest rates, pushing many of our grocery customers’ investment decisions out in time. Despite having completed the announced cost reduction effort in Q4, the revenue decline has put significant pressure on our short- term profitability – and more so than expected. Therefore, we are again taking further actions to cushion the hit on profitability by initiating an organizational restructuring and cost reduction program aimed at saving an additional 20 MNOK p.a. with full effect as of end Q2 this year,“ says Jacob Tveraabak, Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 359 million (381) in the first quarter of 2024 and an EBITDA of –6.2 million (13.5). The first quarter EBIT was NOK –16.8 million and EBT was NOK –14.8 million. The net profit after tax ended at NOK –11.4 million in the quarter. Cash flow from operating activities was NOK 15.3 million. 

“Whereas our financial results certainly are taking a hit, we are progressing very well with our long-term ambitions. In the first quarter we signed and announced the very important Sainsbury’s Order Picking deal. I have labelled this as the most important customer win in StrongPoint’s history and stand by that. This win is only rivalled by our long-awaited innovative cash management solution announcement, which came at the start of Q2, with the by far largest grocery chain in Spain: Mercadona,” Tveraabak continues.

In a company strategy update session following the presentation of the first quarter 2024 financial results, StrongPoint will outline its 2025 estimates and long-term financial aspirations.

“Forecasting in an uncertain macro climate and business environment is hard, in particular in the short term.  Hence, we are cautious about promising or expecting any short-term improvements vs. today's observed business development. That said, we remain confident in the bright future demand and outlook for our solutions. Our recently announced innovative cash management system in Spain with Mercadona and our Order Picking solution win with Sainsbury's in the UK are testimonies of our relevance now and in the future,” Tveraabak concludes.

StrongPoint will host an in-person and streamed presentation of the first quarter results at 09:00 CET followed by the Strategy Update Session at 11:00 CET Thursday 25 April 2024. A Q&A session will follow the Strategy Update Session and questions can be submitted online during the presentation or via email at: investor@strongpoint.com.

The webcast is available at strongpoint.com and can also be accessed by the following links: 

 Q1 Presentation:  https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240425_17

Strategy Update Session: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240425_18

 *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 first quarter 2024 financial report on page 24.