Axis AB: Interim report January-June 2018
- Net sales increased during the second quarter by 23 percent to SEK 2,601 M (2,119). Net sales increased by 25 percent in local currencies.
- Operating profit amounted to SEK 429 M (209), which corresponds to an operating margin of 16.5 percent (9.9).
- Net profit for the period amounted to SEK 331 M (149).
- Earnings per share amounted to SEK 4.77 (2.14).
The first half of 2018
- Net sales increased during the period by 12 percent to SEK 4,659 M (4,146). Net sales increased by 17 percent in local currencies.
- Operating profit amounted to SEK 607 M (443), which corresponds to an operating margin of 13.0 percent (10.7).
- Net profit for the period amounted to SEK 458 M (326).
- Earnings per share amounted to SEK 6.59 (4.69).
We can be pleased about the strong growth during the second quarter, where sales were the highest ever for a single quarter. This performance feels particularly positive when you consider the prevailing component shortage that is affecting our sector as well as other industries. Our growth is largely linked to strong demand and to the fact that several of our distributors are building up larger inventories from relatively low levels, in order to meet the fluctuations in demand.
According to recent statistics from the market research company IHS, Axis is continuing to capture market shares in a market, which is still under consolidation. Meanwhile, we are noticing slightly increasing uncertainty in the market in relation to the effects of global trade barriers and political turbulence. In the present situation, we do not expect any significant impact on our operations but we are monitoring the development closely.
The innovation rate was high during the quarter and we were able to unveil several new products and solutions. AXIS Audio Manager is one such example. This demonstrates the exciting developments within network audio – an area where we see great opportunities. In addition, we can also mention new models of thermal cameras and advanced cameras for harsh environments and challenging lighting conditions.
The strong growth means that we need to expand our research and development operations further. In May, we announced that we opened an office in Linköping, Sweden, where software development will be in focus. We expect to have about 100 employees working there in a few years’ time.
Finally, it is worth mentioning that we passed the level of 3,000 employees during the second quarter, which gives us the basis for a strong development going forward.
Ray Mauritsson, President
This information is such that Axis AB is required to make public pursuant to the EU’s Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08.00 CET on July 12, 2018.