Schouw & Co (SCHO) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a 5% revenue decline to DKK 8.7 billion, but EBITDA rose 11% year-over-year, led by BioMar's strong performance and margin improvements across all businesses.

• The year is positioned as one of consolidation, with reduced investments, profit protection plans, and a focus on operational efficiency and cash flow.

• Results exceeded expectations despite market uncertainties and competitive pressures, maintaining strong market positions.

• Full-year EBITDA guidance was upgraded, while revenue guidance was lowered, reflecting a shift to profitability and long-term growth focus.

• Cautiously optimistic outlook for 2024, supported by well-invested businesses.

Financial highlights

• Q2 2024 revenue: DKK 8,693–8,694m (down 5%); EBITDA: DKK 737–909m (up 11%); EBIT: DKK 455m (up 12%).

• Net profit for Q2: DKK 257m; EPS: DKK 10.52 (up 14%).

• Group EBITDA guidance for 2024 raised to DKK 2,810–3,060m, despite a lower top line.

• Net working capital management and strong cash flow remain priorities.

• ROIC excluding goodwill: 13.8%; equity ratio: 40.2%.

Outlook and guidance

• 2024 revenue guidance lowered to DKK 34.2–36.4bn; EBITDA guidance raised to DKK 2,810–3,060m.

• BioMar upgraded EBITDA guidance to DKK 1.41–1.48bn, with lower volumes but higher margins.

• GPV guidance downgraded: revenue DKK 8.9–9.3bn, EBITDA DKK 610–660m.

• Fibertex Personal Care and Nonwovens raised EBITDA outlooks; HydraSpecma and Borg Automotive maintain or slightly adjust guidance.

• Long-term revenue ambition above DKK 40bn dropped; focus on annual guidance.