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Robotics maker AutoStore doubles income, warns of margin impact

  • October IPO was Norway’s largest in 20 years
  • July-Sept income $84.7 mln vs year-ago $43.4 mln
  • Cost of parts to impact short-term margins
  • Maintains income progress outlook
  • CEO ‘very snug’ of robust progress, earnings

OSLO, Nov 24 (Reuters) – AutoStore (AUTO.OL) faces tight provide of sure parts that can impact earnings margins within the quick time period, the Norwegian robotics firm mentioned on Wednesday after posting a 95% surge in third-quarter income to $84.7 million.

The maker of automated warehouse expertise, of which SoftBank (9984.T)is the most important proprietor with a stake of near 40%, final month turned Norway’s Most worthy new inventory market itemizing in twenty years. learn extra

The firm maintained its income outlook of round $300 million this yr, growing to greater than $500 million for 2022 with a medium-term outlook for annual progress of round 40%.

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AutoStore is going through tight provide of sure elements and supplies, nonetheless, and though this won’t impact progress it’s more likely to impact its earnings.

“There is generally a very tight situation when it comes to certain parts, due to the ongoing global supply chain issues affecting everyone, including for instance components and for aluminium,” Chief Executive Karl Johan Lier advised Reuters.

“We believe we’re on top of this with regards to delivering the revenue growth we’ve guided for, despite this situation, though it can have some impact on earnings margins in the short term,” he mentioned.

AutoStore posted adjusted earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) of $42.3 million for the July-September quarter, an increase of 88% year-on-year, whereas the EBITDA margin eased to 50% from 52% a yr in the past.

The CEO declined to touch upon how a lot margin erosion the element state of affairs may result in.

“But we’re very comfortable with our ability to deliver strong growth and strong earnings in both 2021 and 2022,” he mentioned.

Building on the momentum of its Oct. 20 preliminary public providing, AutoStore’s shares have since risen 29% to develop into Norway’s fifth-most beneficial listed agency and the second-biggest with no strategic authorities stake.

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Reporting by Terje Solsvik; Editing by Tom Hogue, Sherry Jacob-Phillips and Kim Coghill

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