Gyldendal (GYLD) H1 2024 earnings summary

Executive summary

• EBIT from continuing activities improved to -9m DKK in H1 2024 from -15m DKK in H1 2023, in line with expectations.

• Revenue reached 332m DKK, down from 339m DKK in H1 2023, mainly due to timing shifts in school book sales and lower higher education sales.

• Cost control and a May restructuring are expected to yield savings, with full effect in 2025.

• No discontinued activities in H1 2024; H1 2023 included a 2m DKK contribution from discontinued operations.

• Digital sales showed slight growth, while overall book sales were negatively impacted by distribution challenges.

Financial highlights

• Net income for H1 2024 was -5m DKK, an improvement from -13m DKK in H1 2023.

• EBITDA margin from continuing activities was 8.0% in H1 2024, up from 7.8% in H1 2023.

• Net interest-bearing debt reduced to 28m DKK at June 30, 2024, from 82m DKK a year earlier, aided by the sale of the bond portfolio.

• Equity stood at 353m DKK at June 30, 2024, with a solid equity ratio of 61.7%.

• Cash flow from operations was -40m DKK in H1 2024, similar to H1 2023.

Outlook and guidance

• 2024 revenue expected at 700–725m DKK (2023: 720m DKK).

• EBIT guidance for 2024 is 15–25m DKK, corresponding to an EBIT margin of 2.1–3.4%.

• Guidance unchanged from previous company announcement.