Harboes Bryggeri (HARB) Q4 23/24 earnings summary

Executive summary

• Net revenue increased by 12% to mDKK 1,817, with EBITDA up to mDKK 158, reflecting improved product mix, efficiency gains, and successful price increases across all markets.

• Strategic focus on own brands, innovation, and sustainability drove growth, especially in Denmark and export markets, while Germany remained strong in private label.

• Investments in production efficiency, new technology, and sustainability initiatives supported cost savings and future growth capacity.

• The company celebrated its 140th anniversary and continued to strengthen its market position in the value-brand segment.

Financial highlights

• Net revenue rose 12% year-over-year to mDKK 1,817; EBITDA increased to mDKK 158 (margin 8.7%) from mDKK 85 (margin 5.3%) last year.

• EBIT improved to mDKK 77 from mDKK -3; profit before tax was mDKK 68, up from a loss of mDKK -9.

• Free cash flow turned positive at mDKK 55, compared to negative mDKK -116 last year; cash flow from operations was mDKK 182.

• Investments in tangible assets reached mDKK 129, mainly for production upgrades and efficiency.

• Proposed dividend of DKK 2.00 per share for 2023/24.

Outlook and guidance

• EBITDA for 2024/25 expected in the range of mDKK 150-190; profit before tax forecasted at mDKK 60-100.

• Continued intense competition and price pressure anticipated, with growth expected in export and ingredients, but a volume decline in Germany.

• Ongoing investments in technology, efficiency, and sustainability planned.