INSIDE INFORMATION: Duell Corporation profit warning: Duell specifies and lowers outlook and guidance for financial year 2023, and provides preliminary financial information

New outlook and guidance for financial year 2023

The market and business cycle continues to be weak and uncertain. The continuing inflation and the overall economic environment have decreased consumer confidence. These factors will reduce predictability. Duell is adjusting its operating costs to meet lower than expected demand. Duell will continue to execute its growth strategy despite uncertain market conditions.

Duell expects net sales to be approximately EUR 118 million (EUR 124 million in financial year 2022) and adjusted EBITA to be approximately EUR 4.5 million (EUR 8.7 million in financial year 2022) in the current financial year ending 31 August 2023.

Previous outlook and guidance for financial year 2023 issued on May 17, 2023

The market and business cycle continues to be weak and uncertain. The continuing inflation and the overall economic environment have decreased consumer confidence. These factors will reduce predictability. Duell is adjusting its operating costs to meet lower than expected demand. Duell will continue to execute its growth strategy despite uncertain market conditions.

Duell expects net sales to be close to previous year’s level and adjusted EBITA to decrease from the previous year’s level in the current financial year ending 31 August 2023.

Background for specifying the outlook and guidance

During the fourth quarter of the financial year 2023, demand has been lower than expected, which has reduced both net sales and profitability. In addition, exchange rate fluctuations have had a significant negative impact on the company's net sales and profitability.

Preliminary unaudited financial information

The company has reduced inventory levels as planned during the financial year 2023, which has significantly lowered the debt level. This inventory reduction programme has had a positive impact on the company's cash flow.

Next financial report

Duell will publish the Financial Statements Bulletin for the financial year 9/2022-8/2023 (Q4 2023) on Monday, October 9, 2023.

Further information:

Jarkko Ämmälä, CEO
Duell Corporation
+358 50 056 5149
jarkko.ammala@duell.eu

Pellervo Hämäläinen, Communications and IR Manager
Duell Corporation
+358 40 674 5257
pellervo.hamalainen@duell.eu

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+358 9 612 9670

Duell Corporation (Duell) is an import and wholesale company based in Mustasaari, Finland, established in 1983. Duell imports, manufactures, and sells products through an extensive distribution network in Europe covering 8,500 dealers. The range of products includes 150,000 items under 500 brands. The assortment covers spare parts and accessories for motorcycling, bicycling, ATVs/UTVs, mopeds and scooters, snowmobiling and boating. Logistics centres are in Finland, Sweden, Netherlands, France, and the UK.