Crayon Group (CRAYN) Q4 2023 earnings summary

Executive summary

• Q4 gross profit rose 27% YoY to NOK 1,611m; adjusted EBITDA was NOK 241m as weaker service profitability offset growth.

• FY gross profit increased 26% to NOK 5,662m, adjusted EBITDA rose 10% to NOK 919m, and operating cash flow reached NOK 1,390m.

• Record Q4 operating cash flow of NOK 2,117m was supported by working-capital changes; an Oman and Qatar provision reduced reported EBITDA by NOK 80m.

Financial highlights

• Q4 revenue rose 20% YoY to NOK 1,805m; gross profit was NOK 1,611m, up 27% reported and 21% in constant currency.

• Q4 adjusted EBITDA was NOK 241m vs. NOK 258m; reported EBITDA was NOK 130m and EBIT was NOK 54m.

• Q4 net loss was NOK 123m vs. net income of NOK 24m; EPS was -NOK 0.87 vs. NOK 0.38.

• FY revenue was NOK 6,397m; net loss was NOK 159m vs. net income of NOK 23m.

Outlook and guidance

• 2024 gross profit growth guidance is 18–20%, with adjusted EBITDA margin guidance of 18–20%; organic growth is expected to align with the medium-term outlook.

• 2024 average net working capital guidance is -2.5% to -10% of trailing gross profit; the medium-term outlook indicates normalization toward ~-15%.

• Priorities include growth and improved cost efficiency; Consulting measures include a hiring slowdown and further resource optimization.