Q2 2025 Strongpoint ASA Earnings Call Transcript
Key Points
- StrongPoint ASA (FRA:PGT) reported an 18% increase in revenue to NOK350 million, driven by strong growth in the UK, Sweden, and the Baltics.
- Recurring revenue grew significantly by 16%, fueled by the order picking solution and other proprietary and third-party solutions.
- The company achieved a NOK16 million improvement in EBITDA, reaching NOK7 million, indicating positive operational performance.
- StrongPoint ASA (FRA:PGT) secured major contracts, including Carrefour Belgium for its order picking solution and a Nordic grocery retailer for AI-based scales.
- The company is expanding its market presence, serving grocery retailers in over 20 countries, beyond its nine core markets.
- Despite improvements, the EBITDA margin remains slightly over 2%, which is below the company's long-term target of exceeding 10%.
- Revenue in Norway decreased by 16% due to large ESL rollouts in the previous year, impacting overall growth.
- The company anticipates a faster improvement in EBITDA and recurring revenue, indicating current performance may not meet internal expectations.
- Cash flow development was relatively flat, with only a slight increase from NOK82 million to NOK84 million.
- The rollout of the Sainsbury's order picking solution is ongoing, with completion expected by summer 2026, indicating a long timeline for full implementation.
Good morning everybody and welcome to this Q2 presentation by Strongpoint and its results. My name is Jacob Tveraabak and the CEO of Strongpoint. And as always I have Marius Dref verlin, our CFO, with me here today to take you through today's agenda.
I'll start off with this quarter's highlights. First of all, we have an 18% growth in our revenue to NOK350 million driven by strong growth in the UK, in Sweden, and the Baltics. Our recurring revenue is also growing very significantly with 16%. This is predominantly driven by our order picking growth and also a number of other solutions that we have both proprietary but also third party.
Our EBITDA in the quarter is NOK7 million, a NOK16 million improvement from last year, which gets us to a slightly more than 2% EBITDA margin and we have cash flow from operations of NOK20 million-plus. I'll dive more into the customer success stories for this quarter, but I must say we're very proud to have landed Carrefour Belgium with our order picking solution.
We're also very proud
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
