SP Group (SPG) Q2 2024 earnings summary

Executive summary

• H1 revenue rose 8.4% YoY to DKK 1,485.1m; EBITDA increased 31.2% to DKK 302.1m, and EBT rose 63.5% to DKK 176.4m. Higher own-brand sales supported stronger earnings.

• FY2024 revenue growth guidance rose to 8–18%, EBITDA margin to 19–21% and EBT margin to 11–13%.

Financial highlights

• Q2 revenue increased 15.0% to DKK 762.2m; EBITDA rose 49.9% to DKK 153.7m and EBIT rose 102.1% to DKK 103.9m.

• H1 EBIT increased 56.3% to DKK 202.5m; net income was DKK 137.9m versus DKK 84.3m.

• H1 operating cash flow was DKK 256.6m versus DKK 186.8m; cash increased DKK 24.8m versus a DKK 16.0m decline in H1 2023.

Outlook and guidance

• FY2024 guidance increased from revenue growth of 5–15% to 8–18%, EBITDA margin of 16–19% to 19–21%, and EBT margin of 9–12% to 11–13%.

• NIBD/EBITDA is expected to be ~1.5x at FY2024-end; depreciation is expected slightly above 2023 and financial expenses at a similar level.

• New products and solutions, customer wins, product launches and growth at existing customers are expected to support profitable growth; investment remains high, led by the Atlanta healthcare facility.