SP Group Q1 Report 2023

Interim report – First quarter of 2023

Summary: SP Group generated revenue of DKK 707.3 million in the Q1 2023 reporting period, a decline of 1.8% from DKK 720.1 million in Q1 2022. EBITDA was down by 1.6% to DKK 127.7 million from DKK 129.7 million last year, and profit before tax fell by 17.5% to DKK 68.4 million. FY 2023 guidance is maintained. SP Group expects FY 2023 revenue to grow by 5-15% with an EBITDA margin of 16-19% and an EBT margin of 9-12%.

The Board of Directors of SP Group A/S has today considered and approved the interim report for Q1 2023. Highlights of the interim report:

• The Q1 2023 revenue was down by DKK 12.8 million to DKK 707.3 million, or by 1.8% relative to the year- earlier period. Company acquisitions added DKK 21.9 million to consolidated revenue.
• EBITDA for Q1 2023 was DKK 127.7 million, as against DKK 129.7 million in Q1 2022. Company acquisitions added DKK 5.6 million to EBITDA.
• Depreciation, amortisation and impairment losses amounted to DKK 49.6 million, an increase of DKK 6.5 million relative to Q1 2022. Amortisation and depreciation in acquired companies accounted for DKK 2.1 million of the increase.
• Profit before net financials (EBIT) came to DKK 78.1 million in Q1 2023, for a 9.9% decline from DKK 86.7 million in Q1 2022.
• Net financials were an expense of DKK 9.7 million, a DKK 5.9 million increase relative to Q1 2022 that was due to negative value adjustments, higher interest rates and the servicing of a larger debt.
• Profit before tax was DKK 68.4 million in Q1 2023, a 17.5% decline from DKK 83.0 million in Q1 2022.
• Earnings per share (diluted) were DKK 4.42 in Q1 2023, a 17.1% drop from DKK 5.33 in Q1 2022.
• Sales of our own brands were down by 21.9% in Q1 2023 to DKK 164.0 million. SP Group’s own brands accounted for 23.2% of Q1 2023 revenue.
• Sales to the cleantech and automotive industries increased during the reporting period, whereas sales to the healthcare, food-related and other demanding industries fell slightly.
• There was a cash inflow from operating activities of DKK 130.4 million in Q1 2023, against a DKK 62.7 million inflow in Q1 2022.
• Net interest-bearing debt (NIBD) amounted to DKK 996.6 million at 31 March 2023, against DKK 894.6 million at 31 March 2022. At 31 December 2022, NIBD amounted to DKK 1,034.5 million. NIBD was 2.1 times LTM EBITDA. NIBD fell by DKK 37.9 million in Q1 2023.
• SP Group expects FY 2023 revenue to grow by 5-15% with an EBITDA margin of 16-19% and an EBT margin of 9-12%. However, due to the high rate of inflation, rising interest rates, the energy crisis, the war in Ukraine as well as the spread of COVID-19 and the actions taken by the authorities, our levels of activity and cash flows over the coming months remain subject to considerable uncertainty.