Schouw & Co (SCHO) Q3 2024 earnings summary

Executive summary

• Revenue declined 9% year-over-year to DKK 9.5 billion in Q3 2024, with EBITDA down 8% to DKK 834 million, reflecting softer demand and raw material effects across industrial businesses, but profitability and cash flow remained solid.

• Portfolio companies adapted to volatile markets and price pressures, achieving efficiency gains and maintaining margins through cost reductions and selective contract strategies.

• The portfolio consists of six businesses with strong platforms and well-invested positions.

• A potential independent listing of BioMar is under investigation, with intention to retain majority ownership.

Financial highlights

• Q3 2024 revenue: DKK 9,543 million (down 9% YoY); EBITDA: DKK 834 million (down 8% YoY); EBIT: DKK 566 million (down 11% YoY); profit before tax: DKK 487 million (down 12% YoY); net profit: DKK 357 million (down 15% YoY).

• Full-year 2024 revenue guidance narrowed to DKK 34.1–35.7 billion; EBITDA guidance narrowed to DKK 2,810–2,980 million.

• BioMar turnover down 12% to DKK 5.1 billion; EBITDA stable at DKK 463 million.

• GPV revenue down 13% to DKK 2.22 billion; EBITDA down 6% to DKK 186 million.

• HydraSpecma revenue flat at DKK 678 million; EBITDA flat at DKK 79 million.

• Borg Automotive revenue up 4% to DKK 492 million; EBITDA down 21% to DKK 36 million.

• Fibertex Personal Care revenue flat at DKK 474 million; EBITDA down 51% to DKK 40 million, impacted by one-off costs in Malaysia.

• Fibertex Nonwovens revenue up 8% to DKK 563 million; EBITDA down 14% to DKK 42 million.

Outlook and guidance

• 2024 described as a year of consolidation with lower investment levels and no significant market recovery expected.

• Group top line and EBITDA guidance narrowed due to volume and raw material price effects, with EBITDA expected between DKK 2,810–2,980 million.

• BioMar EBITDA guidance narrowed to DKK 1.41–1.46 billion; GPV EBITDA expected at DKK 610–640 million; HydraSpecma EBITDA slightly increased to DKK 320–340 million.

• Fibertex Personal Care EBITDA guidance lowered to DKK 160–180 million due to one-off costs; Fibertex Nonwovens EBITDA expected at DKK 200–220 million.

• EBIT expected at DKK 1,660–1,830 million; net financial expenses forecast at DKK 460 million; associates/JVs to contribute DKK 40 million after tax.