SP Group (SPG) Q3 2024 earnings summary

Executive summary

• Revenue grew 12.4% year-over-year to DKK 2,195m in the first nine months of 2024, with Q3 revenue up 21.7% year-over-year.

• EBITDA increased 38.1% to DKK 447.3m in 9M 2024; Q3 EBITDA up 55% year-over-year.

• Profit before tax rose 82.9% to DKK 254.2m in 9M 2024; Q3 EBT up 150%.

• Growth driven by strong proprietary/own-brand sales, especially in healthcare, cleantech, and food-related industries.

• New CEO Lars Bering appointed, with continued focus on global expansion, especially in the USA.

Financial highlights

• 9M 2024 revenue: DKK 2,195m (up from DKK 1,953.2m in 9M 2023).

• EBITDA margin: 20.4% in 9M 2024 (16.6% in 9M 2023); EBT margin: 11.6%.

• EPS rose 83% year-over-year to DKK 16.3 in Q3 2024; 9M 2024 EPS: DKK 16.25.

• Cash flow from operations improved to DKK 402m for the nine months.

• Cash flow from investments was DKK -126m; cash flow from financing DKK -245m for the nine months.

Outlook and guidance

• FY 2024 revenue growth guidance narrowed to 10–16% (previously 8–18%), EBITDA margin 19–21%, EBT margin 11–13%.

• Growth opportunities supported by new products, solutions, and customer expansion.

• High investment level to be maintained, with major investments in a new healthcare factory in Atlanta, USA.

• Financial expenses expected to be higher than in 2023.