STOCKHOLM, April 29, 2021 /PRNewswire/ --
OXE Marine AB (publ) (NASDAQ STO: OXE) (OTCQX:
CMMCF)
Interim report
First quarter
2021
- Net Turnover of SEK 10.1 m
(SEK 10.3
m)
- Gross Profit of SEK 2.7 m
(SEK 2.4 m) or gross margin of 27%
(23%)
- Operating Loss/EBIT of SEK -21.5
m (SEK -17.6
m)
- Net loss for the period of SEK -23.8
m (SEK -19.6
m)
- Order Book amounted to SEK 140.9
m (SEK 139.3 m as at end of Q4
2020)
Significant events during the First
quarter
- OXE125-200 model year 2021 granted approval by
EPA.
- Start of assembly of OXE125-200 initiated by ONM in
Albany (GA,
USA).
- The board of directors resolved to appoint Magnus Grönborg as
CEO and to reorganize its management team by appointing the current
CEO Myron Mahendra as EVP Business
Development, Sales and Marketing. In addition, the Chairman of the
board Anders Berg will increase his
operational focus on the company by assuming a supportive
operational role with the management team. Magnus Grönborg will
replace Myron Mahendra as CEO in a
few months, with the closer date yet to be
agreed.
- First units of OXE300 assembled and shipped from PanLink's
Polish site in Tczew.
Significant events after the reporting
period
- No significant events after the reporting period.
Comments by the CEO
We have continued to strengthen the Management team during Q1
2021. We appointed a new Director of Aftersales and Service, Mikael
Bornandersson to strengthen our focus on supporting the end-user of
our product as well as intensifying the focus on this part of our
business. Additionally, it was decided by the Board that our
Chairman of the Board, Anders Berg,
will increase his operational focus on the company by assuming a
supportive operational role with the Management team. Anders'
extensive commercial experience will no doubt strengthen the
business processes we have in place.
Additionally, we focused on upgrading our Product Centre in
Ängelholm, to create a flexible facility, to conduct tests on the
first OXE300, handle aftermarket product upgrades as well as the
ability to build prototypes for the innovation pipeline.
During Q1, we commenced production of the OXE300 with our
assembly partner PanLink at their facility in Poland. We have had a cautious start with some
short-term disruption due to COVID related issues affecting the
facility, suppliers and training. Despite the disruptions, we still
produced engines during the quarter, gaining momentum in March. All
early units from Poland, are then
sent to Ängelholm for further testing on the sea to ensure thorough
quality checks are in place. Once a steady state is achieved, this
testing will be conducted in Poland and shipped directly to customer from
there.
Post quarter end, we continue to build capacity to deliver more
units against our Order backlog. Ensuring quality is our overriding
principle which increasing our production run-rate.
As a result of the slower ramp-up our turnover for Q1, amounted
to SEK 10.1m (SEK 10.3m). We achieved a gross profit of
SEK 2.7m (SEK
2.4m) with a gross margin of 27% (23%). This was the highest
gross profit margin for a quarter in the company's history as a
result of the higher margin OXE300 as well as favourable revenue
mix as a result of large spare parts and accessory orders during
the quarter.
We continue to see strong demand for the OXE products, with an
increase in Order Intake of SEK 5.8m
during the quarter. At the end of the quarter the Order Book
amounted to SEK 141m - all of which
are targeted to be delivered during 2021 - see bar chart below in
respect to order book development in the last 15 months.
We initiated the start of assembly of OXE200 series in
January 2021 at the chosen facility
based in Albany, Georgia in the
South East of the US with Outboard Network Manufacturing (ONM) as
our assembly partner. Our start-up activities were impacted,
however, by COVID restrictions on travel to the US. We have one OXE
employee currently on-site and we make use of virtual training
facilities to continue training and validation from a distance with
a focus on assembly quality as well as product knowledge
transfer.
The Company has continued to monitor its Distribution network
and are working to develop closer cooperation and better successful
outcomes in both sales as well as a reduction in the accounts
receivable balance.
We increased our marketing activities during the quarter, as can
be seen on our new website with increased content of our product
range, customer cases and 3D rendering of our products. We see that
many investors continue to be interested in our company and
products and we continue to engage with the public via social media
and other media channels.
We continue with our preliminary assessment of BMW's 4-cylinder
two litre turbo diesel engine for marine application. We continue
to develop the prototype version for sea trials - this is expected
to be delivered during the year.
Other development work continues in accordance to plan
especially with electric outboard solutions where we have delivered
our lower leg for testing with a number of electric outboard
manufacturers. The lower leg has the potential to be a key solution
for power transmission to this new segment.
The Board and Management remain confident of the future and look
forward to growing the business in a sustainable and profitable
manner.
This will likely be my last report as CEO and I look forward to
working with our new CEO, Magnus
Grönborg, in my new role as EVP Business Development, Sales
and Marketing, in the near future.
We are driven by the ambition to transform the outboard motor;
impacting the journey towards a more sustainable and ecologically
positive marine environment.
We are engineering the future. Our future.
Myron Mahendra, Chief Executive
Officer
This disclosure contains information that OXE Marine AB is
obliged to make public pursuant to the EU Market Abuse Regulation
(EU nr 596/2014). The information was submitted for publication,
through the agency of the contact person, on 29-04-2021 11:00
CET.
CONTACT:
Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ).
Contact details to FNCA Sweden AB: tel. +46 8 528 00 399,
e-mail info@fnca.se
For further information, please contact:
Myron Mahendra, CEO,
myron.mahendra@oxemarine.com , +46 76 347 59 82
Anders Berg, Chairman,
anders.berg@oxemarine.com , +46 70 358 91 55
OXE Marine AB (publ) (NASDAQ STO: OXE, OTCQX: CMMCF) has,
after several years of development, constructed the OXE Diesel, the
world ́s first diesel outboard engine in the high-power segment.
OXE Diesel has a unique belt driven propulsion system that allows a
hydraulic multi-friction gearbox to be mounted. This means that the
engine can handle significantly higher loads than a traditional
outboard engine. OXE ́s OXE diesel has a horizontally mounted
engine as opposed to a traditional outboard with a vertically
mounted engine.
This information was brought to you by Cision
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https://news.cision.com/oxe-marine-ab/r/oxe-marine-ab--publ--interim-report-1-january-to-31-mars-2021,c3333348
The following files are available for download:
https://mb.cision.com/Main/16067/3333348/1409584.pdf
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Q1 2021 INTERIM
REPORT
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https://news.cision.com/oxe-marine-ab/i/q1-2021-interim-report,c2905164
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Q1 2021 INTERIM
REPORT
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SOURCE OXE Marine AB