Hove (HOVE) H2 2024 earnings summary

Executive summary

• Revenue declined 9% year-over-year to DKK 169.3 million, mainly due to strong US sales and a one-off project in 2023 not recurring in 2024.

• EBITDA decreased to DKK 13.5 million from DKK 20.4 million, but net profit rose 58% to DKK 5.7 million, aided by lower financial costs and absence of prior year write-downs.

• Gross margin improved to 36.3% from 33.5% due to better pump sales and a lower share of private label products.

• Cost savings of DKK 3 million in staff costs were fully implemented, with further investments in sales personnel.

• Board proposes an extraordinary dividend of DKK 0.14 per share (DKK 3.45 million total) for 2024.

Financial highlights

• Revenue: DKK 169.3 million (down from DKK 187.0 million year-over-year).

• EBITDA: DKK 13.5 million (down from DKK 20.4 million year-over-year).

• Net profit: DKK 5.7 million (up from DKK 3.6 million year-over-year).

• Gross margin: 36.3% (up from 33.5% year-over-year).

• Cash flow from operations: DKK -4.1 million (down from DKK 3.4 million year-over-year).

• Cash at year-end: DKK 6.3 million (down from DKK 13.6 million year-over-year).

• Market capitalization at year-end: DKK 74.7 million (down 52% year-over-year).

Outlook and guidance

• 2025 revenue guidance: DKK 160–190 million; EBITDA: DKK 11–18 million.

• Expects moderate growth due to margin pressure in wind energy and higher sales/marketing costs.

• Anticipates increased pump and grease sales, with new pump launches and continued crane market penetration.

• Assumes stable OEM segment growth, unchanged client business conditions, and stable USD exchange rate.