WindowMaster International (WMA) H2 2023 earnings summary

Executive summary

• 2023 revenue was DKK 238.0m, down 1.4% YoY; net loss widened to DKK 11.1m from DKK 2.0m, with demand and project execution pressured early in the year.

• Order intake held at DKK 254m, supported by a second-half recovery; positive momentum continued into early 2024.

• Strategy remains focused on integrated indoor-climate projects, recurring service contracts and refurbishments, while retaining skilled resources and the fixed-cost base.

Financial highlights

• Revenue DKK 238.0m vs DKK 241.4m in 2022, down 1.4% reported and 1.6% in local currency; within latest 2023 guidance of DKK 233–238m.

• Gross profit DKK 111.9m vs DKK 111.7m; gross margin rose to 47.0% from 46.3%, reflecting less key-account product sales and more direct project revenue.

• EBITDA DKK 19.3m vs DKK 22.8m, with EBITDA margin 8.1% vs 9.4%; adjusted for IFRS corrections, EBITDA was within latest guidance of DKK 12–14m.

• IFRS-reported operating loss was DKK 1.3m vs operating profit DKK 3.3m; net loss DKK 11.1m vs DKK 2.0m, including higher tax expense after tax-loss asset reassessment.

• Operating cash flow improved to DKK 21.3m from DKK 14.4m; investing cash outflow was DKK 6.1m vs DKK 9.5m.

Outlook and guidance

• 2024 organic revenue growth forecast at 5–10%, to DKK 240–265m, and EBITDA at DKK 23–29m; guidance includes IFRS adjustments.

• 2024 growth expected partly from price increases and higher project volumes in North America and the UK, including carry-over from 2023.

• 2026 targets remain average organic revenue growth of 10–15% from 2021–2026 and EBT margin of at least 10%.

• Fixed costs and investment base expected to remain unchanged; improved profitability and cash conversion are expected to bring NIBD/EBITDA below 2.0 by end-2024.