Higher sales but lower profitability due to currency effects and increased costs
PowerCell Sweden AB increased its sales during the second quarter 2020 with 42 percent, from MSEK 15.5 to 22 due to continued large sales to Bosch and the order for a megawatt system we received from a leading European shipbuilder during the quarter. Operating income before items affecting comparability weakened to MSEK -28.3 (-16.7) due to, among other things, negative currency effects, lower gross margin, increased costs for selling and administration as well as for research and development. The Corona outbreak affected the activity level in China specifically but had no significant impact on the company’s overall sales and profitability during the quarter.
Total sales for the second quarter 2020 amounted to 22,064 TSEK compared to 15,522 TSEK the same quarter previous year, an increase by 42 percent. Operating income before items affecting comparability amounted to -28,270 TSEK compared to -16,713 TSEK during the second quarter 2019.
The reason for the decline in operating income before items affecting comparability is lower gross margin linked to specific customer projects, currency effects and deliberately higher costs for selling and administration. Increased costs for research and development, linked to a technically more advanced customer project, have also negatively affected the operating income.
Operating income after items affecting comparability amounted to -28,270 (513,828) TSEK for the period April to June 2020. The difference in operating income after items affecting comparability is explained by the positive impact of TSEK 532,535 following the licensing agreement with Bosch during the second quarter of last year.
“Our sales developed well during the quarter due to continued large sales to Bosch and to the order from a leading European shipbuilder. Deliveries for both these orders will take place continuously over a longer period but have both already impacted the second quarter positively”, Karin Nilsson, CEO of PowerCell said.
The global Corona virus outbreak has continued to have an impact on the activity level in China specifically during the quarter, but the overall impact on sales and profitability has been more limited.
Financial highlights
| All amounts in TSEK | 2020 Apri-June |
2019 Apri-June |
2020 Jan-June |
2019 Jan-June |
| Net sales | 22,064 | 15,552 | 48,790 | 24,778 |
| Operating income before items affecting comparability | -28,270 | -16,713 | -45,880 | 34,517 |
| Operating income | -28,270 | 513,828 | -45,880 | 493,916 |
| Profit/loss after tax | -50,269 | 508,942 | -42,476 | 448,704 |
| Operating cash flow | -10,996 | 424,867 | -43,696 | 414,909 |
About PowerCell Sweden AB (publ)
PowerCell Sweden AB (publ) develops and produces fuel cell stacks and systems for stationary and mobile applications with a world class energy density. The fuel cells are powered by hydrogen, pure or reformed, and produce electricity and heat with no emissions other than water. As the stacks and systems are compact, modular and scalable, they are easily adjusted to any customer need.
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