After reporting a 95% increase in third-quarter revenue to $84.7 million, AutoStore (AUTO.OL) stated on Wednesday that it is experiencing a shortage of specific components, which will have an immediate impact on earnings margins as reported by Reuters.
Tight supply
Last month, the provider of automated warehouse technology became Norway’s most valuable new stock market listing in two decades, with SoftBank (9984.T) owning nearly 40% of the company.
The company’s revenue forecast for this year is over $300 million, rising to more than $500 million in 2022, with a medium-term annual growth rate of around 40%.
However, AutoStore is experiencing a shortage of some parts and materials, which, although not affecting growth, is likely to have an impact on earnings.
“There is generally a really tight situation when it comes to specific products,” Chief Executive Karl Johan Lier told Reuters, citing persistent global supply chain challenges affecting everyone, including components and aluminium.
“Despite this issue, we believe we’re on top of it in terms of delivering the sales growth we’ve guided for,” he said, “but it may have some impact on earnings margins in the short term.”
Margin erosion
For the July-September quarter, AutoStore reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $42.3 million, up 88% year over year, with an EBITDA margin of 50%, down from 52% a year ago.
The CEO will not say how much profit erosion the component situation might cause.
“However, we are quite confident in our capacity to produce excellent growth and earnings in both 2021 and 2022,” he added.
AutoStore’s stock has grown 29% since its initial public offering on Oct. 20, making it Norway’s fifth-most valuable listed company and the second-largest without significant government investment.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: Reuters
