SP Group (SPG) Q2 2023 earnings summary

Executive summary

• Q1 2023 revenue was DKK 707.3m, down 1.8% YoY; EBITDA was DKK 127.7m, down 1.6%. 2023 guidance was maintained.

• Lower volumes and weaker macroeconomic activity weighed on sales, partly offset by acquired activities; management expected higher activity in H2.

Financial highlights

• Net income was DKK 53.7m vs DKK 65.5m YoY; EBT fell 17.5% to DKK 68.4m.

• EBIT declined 9.9% to DKK 78.1m; depreciation and amortization rose to DKK 49.6m from DKK 43.0m.

• Diluted EPS was DKK 4.42 vs DKK 5.33 YoY.

• Acquired activities contributed DKK 21.9m to revenue and DKK 5.6m to EBITDA; FX added DKK 3.3m to revenue.

Outlook and guidance

• FY 2023 revenue growth guidance remained 5–15%, with EBITDA margin of 16–19% and EBT margin of 9–12%.

• New solutions for healthcare, cleantech and food-related industries were expected to support growth; high investment levels were planned, especially in healthcare.

• Higher depreciation and financial expenses were expected in 2023, reflecting prior investment and higher interest rates.