SP Group (SPG) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 21.7% to DKK 710m; 9M revenue increased 12.4% to DKK 2,194.9m.

• Proprietary-product sales grew 67.3% in Q3 and 47.3% in 9M, reaching 30.6% of revenue.

• Higher-margin own products and improved factory utilization supported stronger earnings and margins.

• International sales rose 18.4% in 9M and accounted for 75.1% of revenue.

Financial highlights

• Q3 EBITDA rose 55% to DKK 145m; EBIT increased 120% to DKK 93m and EBT rose 150% to DKK 78m.

• 9M EBITDA increased 38.1% to DKK 447.3m; EBT rose 82.9% to DKK 254.2m.

• 9M diluted EPS was DKK 16.25, up from DKK 8.90; EBITDA margin was 20.4% and EBIT margin 13.5%.

• Operating cash flow reached DKK 401.5m, compared with DKK 288.6m in 9M 2023.

Outlook and guidance

• FY 2024 revenue-growth guidance narrowed to 10%-16% from 8%-18%; EBITDA margin guidance remains 19%-21% and EBT margin 11%-13%.

• Growth opportunities include new products and customer expansion, particularly in healthcare, cleantech, and food-related sectors.

• High investment levels are expected to continue, including major investment in the Atlanta healthcare factory; financial expenses are expected to exceed 2023 levels.

• Long-term financial ambitions are expected to be updated in H1 2025.