GARO's sales in the GARO E-mobility business area were weaker than expected in the fourth quarter of 2022 due to shortage of components, and earnings were also negatively impacted by a non-recurring cost due to the replacement of a technical platform in the GARO E-mobility business area.
In its interim report for the third quarter, GARO assessed that net sales for the fourth quarter would be in line with or just below the year-earlier quarter. Delivery capacity in GARO E-mobility remained problematic in the fourth quarter. At the same time, the performance of GARO Electrification is favorable and in line with GARO's expectations and previously announced information. All in all, this results in net sales for the fourth quarter amounting to approximately MSEK 340 (370).
"The shortage of electronic components for connectable charger products has substantially impacted our production and delivery capacity during the quarter. However, our order intake remains healthy, resulting in a high order book," says Patrik Andersson.
In addition, the Group's EBIT for the fourth quarter was charged with a non-recurring cost of about MSEK 15 as the result of the replacement of a technical platform for GARO E-mobility. GARO's EBIT for the fourth quarter is therefore expected to amount to approximately MSEK 9 (58).
"GARO's launch of the new product range in destination charging, GARO Entity, has been well received by the market and deliveries will begin in the latter part of the first quarter. The new product range ensures functionality and requirements in the European market, which consolidates our leading position in destination charging. The launch will also gradually provide us with a significantly better component supply situation, and we expect to have reached full production of GARO Entity by the summer," concludes Patrik Andersson.
GARO's 2022 year-end report will be published on February 23, 2023 at 8.30 a.m.
For more information, please contact:
Patrik Andersson, CEO: +46 (0)76 148 44 44
Helena Claesson, CFO: +46 (0)70 676 07 50
This information is such information that GARO aktiebolag is obligated to publish in accordance with the EU Market Abuse Regulation. The information was published by the abovementioned contact persons on January 27[th] at CET 08.10.
GARO AB (publ) Corp. Reg. No. 556071-7772 is a company that develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. GARO's customer offering is to provide complete solutions in the product areas of Electrical distribution products, E-mobility, Project business & Temporary Power with a focus on electrical safety, user-friendliness and sustainability. GARO was founded in 1939, has its head office in Gnosjö and is today an international company with operations in six countries with over 500 employees. The company's production units in Sweden are located in Gnosjö and Värnamo, as well as in Szczecin, Poland. GARO is listed on Nasdaq Stockholm under the ticker name GARO. For more information, see www.garo.se
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