Profoto (PRFO) investor relations material

Executive summary

• Net sales declined 13% year-over-year to SEK 171m, with organic decline and currency effects both contributing.

• EBIT dropped to SEK 18m, with margin falling to 10.5–11% from 18.5–19%, mainly due to lower sales, product mix, and increased launch costs.

• Five new products were launched, including three in the LED segment, marking a strong entry and expanding the addressable market.

• Cost-saving measures, including a 15% staff reduction, are underway and expected to show full impact in H2/Q4 2025.

• The market remains challenging, with cautious customer behavior and ongoing uncertainty from tariffs and global conditions.

Financial highlights

• Net sales for Q2 2025 were SEK 171m, down 13% year-over-year; organic growth was -6.7%.

• EBIT for Q2 2025 was SEK 18m, a 47–50% decrease from the prior year.

• EBIT margin for Q2 2025 was 10.5–11%, compared to 18.5–19% in the prior year.

• Cost base reduced by 15% year-over-year, with a target of 20% reduction by Q4.

• LTM net sales were SEK 700m, down 6% year-over-year; adjusted EBIT margin LTM was 16.8–17%.

Outlook and guidance

• Full effect of cost reduction program expected in Q4/H2 2025, with annualized cash flow improvement of SEK 60–80m.

• New LED product shipments expected to begin in Q4, with limited financial impact in 2025.

• R&D spend is being reduced, targeting 10% of sales by year-end.

• No major improvement in market sentiment anticipated; demand remains flat.

• Management remains committed to margin targets and expects cost actions to support recovery.