Following the joint development and licensing agreement with Robert Bosch GmbH, signed in April 2019, PowerCell Sweden AB posts a record high operating income of 513,828 Thousand SEK (-19,287) for the second quarter.
Adjusted for the Bosch agreement and other items affecting comparability, operating income improved to -16,713 Thousand SEK (-19,837).“The agreement with Bosch is obviously decisive for our second quarter but the underlying result is also developing positively due to increased sales and a favourable product mix”, Per Wassén, President and CEO of PowerCell said.
Total sales for the second quarter 2019 amounted to 15,552 Thousand SEK compared to 13,506 Thousand SEK the same quarter previous year, up 15 percent.Operating income before items affecting comparability of 1,994 Thousand SEK, related to the project to change the listing of the company, and for payment and one-time currency effects associated with the Bosch agreement totaling 532,535 Thousand SEK, amounted to -16,713 Thousand SEK (-19,837 TSEK). The underlying improvement is an effect of higher gross margin driven by increased sales and a favorable product mix.
In April PowerCell Sweden AB signed a joint development and licensing agreement with Robert Bosch GmbH regarding the PowerCell S3 fuel cell stack for the automotive segment. The agreement includes a joint development of the S3 and a license whereby Bosch gets the exclusive right to produce and sell the new and improved version of PowerCell S3 for automotive applications such as cars, trucks and buses. Bosch paid an initial 50 MEUR for the license and will pay a royalty fee for every product sold once Bosch starts production of the S3. In May PowerCell was paid 85 percent of the initial payment while the remaining 15 percent was withheld in accordance with the German tax legislation and will be paid out during the second half of 2019.
The project to the change listing from First North to the main market at Nasdaq Stockholm is ongoing and some of the activities needed have been executed, such as the implementation of the accounting standard IFRS. The preparations to make the company ready for a change of listing will continue but following the agreement with Bosch, and the on-going review of our strategic priorities, the company has decided not to make the change of listing this year.
Financial highlights
| All amounts in TSEK | 2019 Apr-Jun |
2018 Apr-Jun |
2019 Jan-Jun |
2018 Jan-Jun |
| Net sales | 15,552 | 13,506 | 24,778 | 21,320 |
| Operating income before items affecting comparability | -16,713 | -19,837 | -34,517 | -38,924 |
| Operating income | 513,828 | -19,837 | 493,916 | -38,924 |
| Income after tax | 508,942 | -20,030 | 488,704 | -39,304 |
| Operating cash flow | 424,867 | -25,260 | 414,909 | -35,183 |
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