SP Group (SPG) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 21.7% YoY; EBITDA increased 55.0% to DKK 145.2m and EBT rose 150.1% to DKK 77.8m.

• 9M revenue grew 12.4% to DKK 2,194.9m; EBITDA rose 38.1% to DKK 447.3m, led by own-brand sales.

• Lars Bering took office as CEO; FY2024 revenue growth guidance narrowed to 10–16%.

Financial highlights

• Q3 2024 revenue was DKK 710m vs. DKK 583m; EBITDA was DKK 145m vs. DKK 94m.

• 9M EBIT was DKK 295.8m vs. DKK 171.9m; EBT was DKK 254.2m vs. DKK 139.0m.

• 9M net income was DKK 198.5m vs. DKK 108.5m; diluted EPS rose to DKK 16.25 from DKK 8.90.

• Financial items were a DKK 41.6m expense, up DKK 8.7m YoY, reflecting lower currency gains than in 2023.

Outlook and guidance

• FY2024 revenue growth guidance narrowed to 10–16% from 8–18%; EBITDA margin guidance is 19–21% and EBT margin guidance is 11–13%.

• New products and solutions, improving order intake, customer wins and growth among existing customers support further growth opportunities.

• High investment levels will continue in 2024, led by a new healthcare factory and Atlanta equipment; depreciation is expected to match 2023, with higher financial expenses.