Quarter 1 2025 in summary

• Doro‘s net sales amounted to SEK 220.3 million (194.6), an increase of 13.2 percent.
• Gross margin was 53.3 percent (42.0).
• EBITDA amounted to SEK 16.3 (11.9), an increase of 37.0 percent.
• Operating profit (EBIT) amounted to SEK 4.4 million (3.1), corresponding to an operating margin of 2.0 percent (1.6).
• Profit after tax for the period was SEK ‑3.2 million (6.1) and earnings per share was SEK ‑0.13 (0.25).
• Free cashflow was SEK ‑15.0 million (‑0.2).

Message from the CEO
A return to growth
My priority since joining Doro has been to drive a commercial transformation based upon a strong brand platform and products developed to uniquely meet the needs to our users. Our Q1 result builds upon the momentum we picked up towards the end of last year and sets us up for a good year ahead. To be able to invest more aggressively in marketing, it is vital that we drive not only strong margins but also get back to top line sales growth. I am therefore delighted that our new range of Feature Phones, sold under brand name Leva, are performing well and have helped us to deliver an increase in sales of 13.2% compared to the same quarter last year. With gross margin also increasing year on year, we are well set up for the imminent launch of our new range of Aurora Smart Phones which we will back strongly with a new marketing campaign.

Our strategy to focus on more premium Feature Phones continues to pay off. End users enjoy high quality phones adapted to their needs, whilst our customers can maximise the value of their portfolio. Robust and reliable products are key in our endeavour to minimise the impact on the environment as our users can use their phone for a long time. Our commitment to quality also translates into low return rates which in turn strengthens brand reputation and relationships with customers.
Beyond driving commercial success of Leva Feature Phones, our top priority for the past six months has been to prepare for the launch of our new range of Smart Phones sold under the brand name Aurora. The digitalisation of society simplifies life for the majority. However, many people find the use of technology difficult and can lead to them feeling isolated, excluded and lonely. Our mission is to enable those with additional needs to feel safe, connected and included through easy-to-use technology to combat this trend. The Aurora Smart Phone range has been designed with this in mind and to support the user into a more digital society.

The reintroduction of physical buttons together with the unique Doro Easy Interface^TM  make Aurora phones intuitive to use. Doro ClearSound^TM is a unique acoustic profile that Doro has developed to enhance the sound frequencies commonly lost as we age to provide crisp clear conversation. Aurora Smart Phones all carry the Doro Secure Button^TM which can be pressed to call for urgent assistance from relatives to give peace of mind and a feeling of security. The launch of Aurora will be backed by our biggest ever media campaign as we aim to awareness of Doro and that our products are more suitable for our target user than mainstream products.

As Xplora Technologies AS work to acquire the 90% shareholding required to squeeze out the final 10% of shareholders and own Doro 100%, we have initiated a commercial cooperation between the two companies. The cooperation is regulated by an at arm’s length commercial agreement under which we are planning for the launch of Doro branded mobile phone connectivity that will provide a unique Doro service experience for our subscribers.

While global trade has become very unstable and difficult to predict, we do not foresee any major direct impact in short term, not being present on the American market. We are however following the situation closely as all markets and business will be impacted at some point.
In the meantime, we remain focused on what we are dedicated to do, empowering all people to live a better life through accessible technology.
 
Julian Read, President and CEO