Industrie De Nora (DNR) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was €856.4m, up 0.4% reported and 4.0% at constant FX; Adjusted EBITDA was €171.1m at a 20.0% margin.

• Net profit was €231.1m, including €133m of non-recurring income from the thyssenkrupp nucera listing; excluding this gain, net profit was €98.1m.

• Energy Transition revenue grew 139.6% to €102.2m; the 2023–2026 plan targets high-single-digit consolidated revenue CAGR.

Financial highlights

• Revenue was €856.4m vs €852.8m in 2022; currency movements, mainly Asian, reduced 2023 revenue by ~€30m.

• Adjusted EBITDA was €171.1m vs €190.8m; EBIT rose 8.8% to €136.9m from €125.8m.

• Net profit was €231.1m vs €89.7m; financial activities included the €133m listing-related gain.

• Operating cash flow was €140.3m vs €113.0m; cash and cash equivalents closed at €198.5m.

Outlook and guidance

• 2023–2026 consolidated revenue CAGR is forecast at high single digits, with growth expected to accelerate over the plan period.

• Revenue CAGR targets: Energy Transition 40%, Electrode Technologies low single digits, and Water Technologies mid-single digits.

• 2024 growth is expected to be gradual, with a more visible Electronics and Pools recovery in H2; operating margins are expected in line with the plan.

• Adjusted EBITDA margin target is 18%–19%, excluding Italian Gigafactory one-off costs, which are expected to reduce consolidated margins by 1–2 percentage points.

• 2024–2026 investment plan totals ~€290m, with 60% for Green Hydrogen; annual dividend guidance is up to 25% of consolidated net profit.