Glamox revenue up on renovations and offshore, but it records a loss

Feb. 19, 2024
Fluorescent bans and energy reduction drives are boosting sales. Costs and currency remain a challenge.

Another day, another Scandinavian lighting company reporting a strong fourth quarter of orders boosted by the European renovation market. This time it was Norway’s Glamox AS, which also saw lively activity in marine operations. But sales growth did not prevent a financial loss.

For the quarter ending Dec. 31, sales and other revenue hit NOK (Norwegian kroner) 1.12 billion ($106.8 million) up 6.7% from NOK 1.05 billion in the same quarter a year ago. Like its Swedish rival Fagerhult Group, Glamox also reported vibrant order activity, boding well for continued revenue growth. Quarterly order intake grew 9.3%, to NOK 1.17 billion ($111.5 million) from NOK 1.07 billion in 2022. 

But the climb in sales and orders could once again not stave off a loss of NOK 33.2 million ($3.2 million) compared to an NOK 25 million profit in the 2022 fourth quarter. The loss was caused by factors including currency effects of the Norwegian krone. 

“Estimated currency effects continued to have a gross effect on the Glamox Group’s financial statements,” the company explained. “Against the main currencies, there was a weakening compared to the same period last year. Given that the Glamox Group has significant operations abroad, all main revenue and cost lines in the consolidated interim statement of profit and loss were affected by the currency effects. Revenue growth was 2.4% when adjusted for currency translation effects.”

The company also attributed the loss to a rise in costs including operating expenses, materials, consumables, salaries, and interest expenses. On top of that, it cited certain one-off financial items related to “cost improvement projects” and tax provisions in some jurisdictions. The sales growth versus financial loss scenario is a familiar one at Glamox.

CEO Astrid Simonsen Joos was upbeat as she focused on the sales and order stream coming from both the Professional Building Solutions (PBS) business in commercial office sales, and the Marine, Offshore & Wind (MOW).

“Our team's efforts resulted in continued revenue and order intake growth and increased adjusted EBITDA in Q4,” she said. “Adjusted EBITDA increased by 1.3%, reaching NOK 146 million, despite inflation and currency effects impacting the cost of materials. These factors were mitigated by pricing measures and efficiency improvements.

Simonsen Joos continued, “Our largest division, Professional Building Solutions, experienced a continued demand for energy-efficient lighting solutions driven by building renovation and high retrofit activity. Our Marine, Offshore & Wind division also witnessed a continued demand and growth both in the new build and renovation market.”

As at Fagerhult, Europe’s Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) is one factor pushing renovations to LED lighting, as it bans the sale of new fluorescent systems. A general push toward energy efficiency and low-carbon operations has also been a boon.

Sales at the larger PBS division grew to NOK 830 million ($79. million), up 11% from NOK 748 million a year ago.

“Revenue growth was generally strong with the Restriction of Hazardous Substances (RoHS) directive, which phases out fluorescent lighting across Europe, being an important driver,” the company sated.

The growth rate slightly outpaced growth in the smaller MOW group, marking the second consecutive quarter in which sales on land have grown faster. Revenue at MOW was NOK 288 million ($27.5 million), up 9.5% from NOK 263 million a year ago.

Still, Glamox is known for its prowess on the high seas, outfitting commercial vessels, offshore wind farms, and the like.

The EBITDA profit margin was higher at MOW at 14.9% versus 10.2% at PBS. Both were down slightly from last year.

For the year, revenue was NOK 4.27 billion ($407 million), up 13% from NOK 3.77 billion in 2022. But Glamox lost NOK 61.77 million ($5.9 million) in 2023, compared to a 2022 profit of NOK 9.4 million.

MARK HALPER is a contributing editor for LEDs Magazine, and an energy, technology, and business journalist ([email protected]).

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About the Author

Mark Halper | Contributing Editor, LEDs Magazine, and Business/Energy/Technology Journalist

Mark Halper is a freelance business, technology, and science journalist who covers everything from media moguls to subatomic particles. Halper has written from locations around the world for TIME Magazine, Fortune, Forbes, the New York Times, the Financial Times, the Guardian, CBS, Wired, and many others. A US citizen living in Britain, he cut his journalism teeth cutting and pasting copy for an English-language daily newspaper in Mexico City. Halper has a BA in history from Cornell University.