Cision News: Challenging Start to Fiscal Year with Inventory Write-downs Impacting Results
Cision News reported a weak first quarter with sales flat year-over-year, impacted by supply disruptions and complex product launches. Significant inventory write-downs led to sharply lower margins.
Cision News experienced a weak start to its new fiscal year, with first-quarter sales amounting to SEK 106.9 million, largely in line with the previous year's SEK 107.2 million. Operating expenses increased to SEK 31.5 million from SEK 25.7 million.
The company's gross margin fell to 17% and EBITDA margin to -6% due to SEK 20 million in inventory write-downs. Excluding these write-downs, the gross margin would have been 35% and the EBITDA margin 12%.
Cision News is navigating a challenging period characterized by supply chain disruptions and the launch phase of technically complex products, which has caused delays.
During the first quarter, the company launched two new products and added three products to its existing portfolio.