Solar (SOLAR) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was DKK 13,031m, slightly below expectations; EBITDA was DKK 871m, a 6.7% margin and among the strongest results in the business’s history.

• Q4 revenue and EBITDA declined YoY amid weaker demand; 2024 guidance calls for DKK 12.5bn revenue and DKK 600m EBITDA.

Financial highlights

• FY2023 revenue fell to DKK 13,031m from DKK 13,863m; adjusted organic growth was -2.6% vs 12.9% in FY2022.

• FY2023 EBITDA was DKK 871m vs DKK 1,175m; EBITDA margin was 6.7% vs 8.5%, and gross profit margin was 22.5% vs 23.4%.

• Adjusted for one-off price effects, FY2023 EBITDA was DKK 841m vs DKK 960m, with an underlying margin of 6.5% vs 6.9%.

• Q4 revenue was DKK 3,160m, down 14.2%; EBITDA was DKK 190m vs DKK 326m, and gross profit margin was 22.4% vs 23.6%.

• Adjusted for one-off price effects, Q4 underlying EBITDA margin was 6.2% vs 6.9%; costs declined YoY despite inflation, but savings did not offset lower revenue.

Outlook and guidance

• 2024 guidance: revenue of DKK 12.5bn and EBITDA of DKK 600m.

• Guidance includes DKK 35m of restructuring costs, mainly in Q1, DKK 20m of investment in strategic focus areas, and an expected DKK 30m gain from the Duiven warehouse sale.

• Strategic ambitions by 2026 include EBITDA margin above 6.0% and gearing of 1.0–3.0x; Climate & Energy revenue share above 15% and Solution Sales above 20%.