SP Group (SPG) Q4 2023 earnings summary

Executive summary

• 2023 revenue declined 1.9% to DKK 2,606.3m as customer inventory reductions and weaker economic activity weighed on demand.

• EBITDA fell 7.8% to DKK 441.0m; operating cash flow rose to DKK 360.4m, equity increased, and net interest-bearing debt edged lower.

Financial highlights

• Revenue was DKK 2,606.3m in 2023, down 1.9% YoY; Q4 revenue was DKK 653.2m versus DKK 648.8m.

• EBITDA declined 7.8% to DKK 441.0m and EBITDA margin fell 1.1 percentage points to 16.9%; EBIT was DKK 241.2m, down 18.5%.

• EBT fell 25.1% to DKK 201.1m; diluted EPS decreased 25.4% to DKK 13.04 per share.

• Operating cash flow increased to DKK 360.4m from DKK 264.5m; investment cash flow was DKK -187.5m versus DKK -320.9m.

Outlook and guidance

• 2024 guidance: revenue growth of 5–15%, EBITDA margin of 16–19%, and EBT margin of 9–12%.

• New products, customer needs and growth at existing accounts offer opportunities, while the fragile global economy and no expected European growth weigh on visibility.

• Inflation, higher interest rates, volatile energy prices, and the wars in Ukraine and Gaza create significant near-term uncertainty for activity and cash flows.

• Accoat expects higher 2024 revenue than in 2023.