US economy

Robotics maker AutoStore doubles revenue, warns of margin impact



© Reuters.

By Terje Solsvik

OSLO (Reuters) -AutoStore faces tight supply of certain components that will impact earnings margins in the short term, the Norwegian robotics company said on Wednesday after posting a 95% surge in third-quarter revenue to $84.7 million.

The maker of automated warehouse technology, of which SoftBank is the largest owner with a stake of close to 40%, last month became Norway’s most valuable new stock market listing in two decades.

The company maintained its revenue outlook of around $300 million this year, increasing to more than $500 million for 2022 with a medium-term outlook for annual growth of around 40%.

AutoStore is facing tight supply of certain parts and materials, however, and although this will not impact growth it is likely to have an effect on its earnings.

“There is generally a very tight situation when it comes to certain parts, due to the ongoing global supply chain issues affecting everyone, including for instance components and for aluminium,” Chief Executive Karl Johan Lier told Reuters.

“We believe we’re on top of this with regards to delivering the revenue growth we’ve guided for, despite this situation, though it can have some impact on earnings margins in the short term,” he said.

AutoStore posted adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $42.3 million for the July-September quarter, a rise of 88% year-on-year, while the EBITDA margin eased to 50% from 52% a year ago.

The CEO declined to comment on how much margin erosion the component situation could lead to.

“But we’re very comfortable with our ability to deliver strong growth and strong earnings in both 2021 and 2022,” he said.

Building on the momentum of its Oct. 20 initial public offering, AutoStore’s shares have since risen 29% to become Norway’s fifth-most valuable listed firm and the second-biggest without a strategic government stake.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.