Norway-based grocery retail technology firm StrongPoint reported a modest contraction in quarterly revenue, attributing the decline primarily to the cessation of contributions from an Electronic Shelf Label (ESL) partner.
Revenue for the second quarter totaled NOK 342 million, a 2% decrease from the comparable period a year earlier. The company recorded EBITDA of NOK 5 million for the quarter, a figure that included NOK 4 million in one-time charges. Operating income was negative NOK 6 million and net income came in at negative NOK 8 million. Adjusted free cash flow for the period was NOK 49 million.
Regional performance diverged. Sales in the Nordic region fell 22% as the former ESL partner no longer contributed to revenue streams. International markets provided a partial offset, with revenue up 15% year on year.
Chief Executive Jacob Tveraabak noted that the drop in EBITDA was mitigated by an improved cost base. The company also reported that recurring revenue declined as a direct result of the end of contributions from the former Electronic Shelf Label partner.
Looking ahead, StrongPoint indicated an expectation of profitable growth in the U.S. market following what it described as a recent breakthrough. The company emphasized, however, that establishing a recurring revenue stream with its new partner Vusion will take time.
To address the financial impact of the partner exit and to support future growth, StrongPoint plans to continue implementing internal efficiency measures and to right-size its cost base.
Summary
StrongPoint posted a slight revenue decline to NOK 342 million in the quarter, registering NOK 5 million in EBITDA after NOK 4 million of one-off costs, and recording operating and net losses. Nordic revenue was down sharply following the end of contributions from a former ESL partner, while international revenue grew. The company expects U.S. market growth and cautions that building recurring revenue with Vusion will require time. Efficiency measures and cost right-sizing remain priorities.
Contextual notes
- Revenue: NOK 342 million, down 2% year on year.
- EBITDA: NOK 5 million, inclusive of NOK 4 million one-time costs.
- Operating income: negative NOK 6 million; Net income: negative NOK 8 million.
- Adjusted free cash flow: NOK 49 million.
- Nordic revenue: down 22%; International revenue: up 15%.
These figures reflect the company statements and do not include additional commentary beyond the items provided by management.