SP Group (SPG) Q2 2024 earnings summary

Executive summary

• Revenue grew 8.4% year-over-year in H1 2024 to DKK 1,485.1 million, driven by strong own brand sales and international growth, with EBITDA up 31.2% to DKK 302.1 million and profit before tax up 63.5% to DKK 176.4 million.

• Own brand revenue surged 38.4% to DKK 438.8 million, now nearly 30% of total sales, with notable growth in healthcare, cleantech, and food-related industries.

• International sales rose to nearly 75% of revenue, with operations in 98 countries and 2,351 employees across 31 plants worldwide.

• CEO Frank Gad will step down in September 2024 after 20 years, succeeded by Lars Bering, with Tilde Kejlhof joining as CFO.

• Upgraded 2024 guidance and strong management team position the company to fulfill its ambitions despite global economic uncertainty.

Financial highlights

• H1 2024 revenue: DKK 1,485.1 million (+8.4% YoY); Q2 sales up 15% YoY.

• EBITDA: DKK 302.1 million (+31.2% YoY), margin 20.3% (up 2.5–3.5 percentage points YoY).

• Profit before tax: DKK 176.4 million (+63.5% YoY); diluted EPS: DKK 11.33 (+63.7% YoY).

• Equity increased by DKK 112.5 million to DKK 1,576.0 million; equity ratio improved to 49.9% from 45.7% YoY.

• Net interest-bearing debt reduced by DKK 106.8 million to DKK 923.8 million; NIBD/EBITDA at 1.8, expected to reach 1.5 by year-end.

Outlook and guidance

• 2024 guidance upgraded: revenue growth expected at 8–18% (previously 5–15%), EBITDA margin 19–21% (from 16–19%), EBT margin 11–13% (from 9–12%).

• Growth to be driven by new products, especially in healthcare, cleantech, and food-related industries.

• High investment planned, including a new healthcare factory in Atlanta, USA.

• Activity and cash flows remain subject to macroeconomic and geopolitical uncertainties.