OXE Marine AB (publ) Interim Report 1 January to 31 March 2024

OXE Marine AB (publ)

First Quarter 2024
· Consolidated Net turnover amounted to SEK 39.2 m (SEK 32.8 m).
· Consolidated Gross Profit amounted to SEK 10.7 m (SEK 8.2 m) with a gross margin of 27% (25%).
· Consolidated EBITDA amounted to SEK -18.9 m (SEK -17.3 m).
· The consolidated result for the quarter amounted to SEK -33.3 m (SEK -27.5 m).
· Consolidated EPS and Diluted EPS amounted to SEK -0.10 (SEK -0.09).
Significant events during the first quarter
· OXE Marine receives a purchase order worth USD 0.9M from the U. S. department of state.
· OXE Marine signs distributor agreement with SARJ in Sweden and Finland.
· OXE Marine signs distributor agreement with Bota Technik in Poland.

Significant events after the reporting period
· OXE Marine continues expansion of dealer and OEM network in the US.

A word from the CEO
A steady start to the year
“We continue to increase the focus on the aftersales and technical support functions in our business. We believe our focus on this area will ultimately pay off in creating a trusted marine brand.”
The total sales for the quarter amounted to SEK 39.2 m (SEK 32.8 m), an increase of 19% compared to the same quarter of the previous year. As Q1 historically is our lowest selling quarter, we are pleased to see an improvement in sales in Q1 compared to last year. The main driver in the quarter was growth in propulsion sales which amounted to SEK 25.1 m (SEK 18.9 m), representing 32% growth in this segment.
It is pleasing to see that we start to receive repeat orders from key customers, who either repowered the same vessel or continue to power or repower their growing fleet. The OXE300 has been on the market for approximately 3 years, and we saw the first OXE300 reach over 2000 hours of operation and several others breach the 1000-hour mark. We have featured several customer cases on social media and will continue to do so as the number of installations increases. During the quarter we received a purchase order of USD 0.9 m to deliver to the US Department of State. We see continued interest in governmental segments across the globe.
The OXE200 family continues to be in high demand and there is an unfulfilled order backlog on this product range. We are and have been in the process of investing in the supply chain of this product line to enable us to increase production output. In addition, we are in progress of increasing the commonality of parts by introducing OXE300 leg components to the OXE200, simplifying, supply chain and production and supporting our customers in streamlining aftersales support.
We continue to see good growth in the P&A segment. Sales amounted to SEK 14.2 m (SEK 13.9 m). Included in the Q1 2023 sales was SEK 3.8 m relating to industrial sales. Excluding this, the growth quarter on quarter amounted to 41%. In addition to this, the lead times on order backlogs significantly reduced during the quarter, meaning that OXE customers can experience reduced lead times in receiving spare parts. During the quarter we also increased our accessory offering when it comes to steering options, hydraulic jack plates and other boat accessories that are complimentary to the supply of our engines.
Gross Profit for the quarter amounted to SEK 10.7 m (SEK 8.2 m) on a consolidated basis, an increase of 31% relative to the same quarter of the previous year. Gross margin amounted to 27% during the quarter (25%). During the quarter we announced price increases effective from 1 April 2024, as part of our annual price increase. This is in effect to compensate for the price increases OXE has received from our suppliers.
EBITDA for the quarter amounted to SEK -18.9 m (SEK -17.3 m). EBITDA excluding forex movements remained relatively flat relative to the prior year and amounted to SEK -17.3 m (SEK -17.8 m) for the quarter. Operating expenses were SEK -27.9 m for the quarter (SEK -25.9 m). There were 52 people in the organisation at the end of the quarter. The organisation is lean with a high focus on productivity and Management have several initiatives in place to reduce operating expenses. This, in combination with focusing on increasing gross margin through more direct sales channels and organic sales growth is the approach to improving EBITDA.
In the beginning of April we went live with the new ERP system across the whole organization, bringing additional efficiency and transparency to the business and providing a digital platform on which the business can grow.
 Paul Frick, CEO

For further information, please contact:
Paul Frick, CEO, OXE Marine AB, paul.frick@oxemarine.com, +46 70 325 06 20
Jonas Wikström, Chair of the Board, jonas.wikstrom@oxemarine.com, +46 70 753 65 66

Certified Adviser FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ).

OXE Marine AB (publ) (NASDAQ STO: OXE) is the company behind the world’s first high-performance diesel outboard. The company’s unique and patented solutions for high torque transmission between powerhead and lower leg has led to a global high demand for the company’s outboards. OXE Marine is on a journey to make life at sea prosperous for people and planet.