SP Group (SPG) Q1 2024 earnings summary

Executive summary

• Q1 revenue rose 2.2% YoY to DKK 722.9m; EBITDA increased 16.2% to DKK 148.4m, and EBT rose 23.8% to DKK 84.8m.

• Organic growth in local currencies was 2.8%; currency movements reduced revenue by DKK 4.4m, or 0.6%.

Financial highlights

• EBIT increased 26.2% YoY to DKK 98.6m; net income was DKK 66.4m versus DKK 53.7m, and diluted EPS rose 23.8% to DKK 5.47.

• Operating cash flow was DKK 121.3m versus DKK 130.4m a year earlier; investing cash flow was negative DKK 29.2m and financing cash flow negative DKK 84.1m.

• Equity including minorities was DKK 1,535.7m, up DKK 72.1m from year-end 2023; net interest-bearing debt was DKK 946.4m at March-end.

Outlook and guidance

• FY 2024 guidance was maintained: revenue growth of 5–15%, EBITDA margin of 16–19%, and EBT margin of 9–12%.

• Depreciation is expected to be slightly above 2023; financial expenses are expected at a similar level. A high investment level is planned for 2024.

• Improving order intake and new healthcare, cleantech, and food-related products are expected to support profitable growth in coming quarters.