Interim report - Third quarter of 2022 - SP Group A/S

SP Group generated revenue of DKK 2,007.5 million in the 9M 2022 reporting period, a 9.2% improvement from DKK 1,838.8 million in 9M 2021. EBITDA was up by 11.9% to DKK 354.4 million from DKK 316.8 million last year, and profit before tax was up by 5.5% to DKK 202.9 million. FY 2022 guidance is maintained. SP Group expects FY 2022 revenue to grow by 5-15% for an EBITDA margin of 16-18% 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 9M 2022. Highlights of the interim report:

• 9M 2022 revenue was up by DKK 168.7 million to DKK 2,007.5 million, for a 9.2% year-on-year increase. Company acquisitions added DKK 48.1 million to consolidated revenue. Q3 revenue grew by 1.1%.
• Earnings before depreciation, amortisation and impairment losses (EBITDA) for the 9M 2022 period were DKK 354.4 million, against DKK 316.8 million in 9M 2021. Company acquisitions added DKK 15.6 million to EBITDA. External due diligence costs related to the acquisitions of DAVINCI 3D A/S and Bovil ApS reduced EBITDA by DKK 0.6 million. EBITDA declined by DKK 1.6 million in Q3 2022, for a 1.6% year-on-year decrease.
• Depreciation, amortisation and impairment losses amounted to DKK 133.7 million, an increase of DKK 20.1 million relative to 9M 2021. Amortisation and depreciation in company acquisitions accounted for DKK 4.8 million of the increase.
• Profit before net financials (EBIT) came to DKK 220.7 million in 9M 2022, for an 8.6% increase from DKK 203.2 million in 9M 2021. The Q3 EBIT was DKK 58.9 million against DKK 67.4 million in Q3 2021.
• Net financials were an expense of DKK 17.8 million, a DKK 6.9 million increase relative to 9M 2021 that was due to negative value adjustments, higher interest rates and servicing of a larger debt.
• Profit before tax was DKK 202.9 million in 9M 2022, a 5.5% improvement from DKK 192.4 million in 9M 2021. The Q3 EBT was DKK 49.4 million against DKK 62.9 million in Q3 2021.
• Earnings per share (diluted) were up by 7.2% to DKK 13.12 in 9M 2022 from DKK 12.24 for the 9M 2021 period.
• Sales of our own brands were up by 13.3% in 9M 2022 to DKK 541.8 million. At 27.0% of 9M 2022 revenue, SP Group’s own brands account for a growing proportion of revenue. Sales of our own brands were down by 6.5% in the third quarter to DKK 150.8 million.
• Sales to the healthcare, food-related, automotive and other demanding industries increased during the reporting period, whereas cleantech sales declined.
• There was a cash inflow from operating activities of DKK 210.2 million in 9M 2022, against a DKK 197.7 million inflow in 9M 2021. 
• Net interest-bearing debt (NIBD) amounted to DKK 901.5 million at 30 September 2022, against DKK 753.8 million at 30 September 2021 and DKK 822.0 at 31 December 2021. NIBD was 2.0 times LTM EBITDA. NIBD increased by DKK 79.5 million in the 9M 2022 period, mainly due to the acquisitions of DAVINCI 3D A/S and Bovil ApS.
• SP Group expects FY 2022 revenue to grow by 5-15% for an EBITDA margin of 16-18% and an EBT margin of 9-12%. However, due to rising energy prices, the war in Ukraine, the continuing spread of COVID-19 and the actions taken by the authorities combined with global bottleneck issues in a number of supply chains, our levels of activity and cash flows over the coming months are subject to considerable uncertainty. 

Statement by CEO Frank Gad: “We successfully delivered growth in revenue and EBITDA in the first nine months of 2022 despite rising energy prices, the war in Ukraine, global turbulence, many market challenges, volatile prices of raw materials and the COVID-19 pandemic. Nevertheless, we’re facing many challenges in a rapidly changing world. All of our 32 plants are operating and have access to the raw materials they need, and all our sales offices are open for business. We have benefited from our exposure to relatively resilient industries, and we have grown our sales to the healthcare, food-related and other demanding industries. We have continued to pursue our dedicated M&A strategy, thereby attracting more customers and getting access to new technology, and we’re committed to retaining our role as industry consolidators as and when value-adding opportunities arise.”

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• Meddelelse nr. 62 - Q3 - ENG - 15 11 22

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