Gabriel Holding (GABR) Q4 23/24 earnings summary

Executive summary

• Revenue for the year was DKK 912 million, with operating profit (EBIT) at DKK 10.9 million, impacted by irregularities in the Mexican FurnMaster subsidiary, leading to corrections of previous years' figures and a restatement of equity by DKK 39.2 million for 2022/23 and DKK 11.6 million for 2021/22.

• The FurnMaster business units are being divested and classified as discontinued operations, with the sale expected to complete in 2024/25.

• Continuing operations, mainly the global fabric business, delivered revenue growth and improved profitability.

Financial highlights

• Group revenue was DKK 912 million, down 2% year-over-year due to discontinued operations; continuing operations revenue grew 6.4% to DKK 483.5 million.

• Gross margin for continuing operations was 51.7% (up from 51.4%), EBITDA was DKK 56.8 million (up from DKK 46.9 million), and EBIT was DKK 19.7 million (up from DKK 13.1 million).

• Profit after tax from continuing operations was negative DKK 1.5 million; total loss after tax including discontinued operations was negative DKK 15.7 million.

• Discontinued operations (FurnMaster) saw revenue decline 9% to DKK 429.1 million and an EBIT loss of DKK 8.8 million.

• No dividend is proposed for 2023/24.

Outlook and guidance

• Management expects challenging market conditions to persist in 2024/25 due to geopolitical risks, inflation, and currency/interest rate uncertainty.

• For continuing operations, revenue is expected at DKK 485–530 million (0–10% growth) and EBIT at DKK 20–30 million.

• The divestment of FurnMaster is anticipated to complete in 2024/25.