Schouw & Co (SCHO) Q3 2024 earnings summary

Executive summary

• Revenue declined 9% year-over-year to DKK 9.5 billion in Q3 2024, with EBITDA down 8%, but profitability and cash flow remained solid amid volatile markets and price pressures.

• Portfolio companies adapted to challenging environments, achieving efficiency gains and maintaining margins through cost reductions and capacity adjustments.

• The group consists of six well-invested businesses, with BioMar's potential independent listing under investigation.

Financial highlights

• Q3 2024 revenue was DKK 9,543 million (down 9% YoY); EBITDA was DKK 834 million (down 8% YoY); EBIT was DKK 566 million (down 11% YoY).

• BioMar turnover down 12% to DKK 5.1 billion, volumes down 8%, but EBITDA stable at DKK 463 million year-over-year.

• GPV revenue down 13% to DKK 2.22 billion, EBITDA down 6% to DKK 186 million, with positive impact from reversed inventory impairment.

• HydraSpecma revenue flat at DKK 678 million, EBITDA flat at DKK 79 million, with resilience in renewables.

• Borg Automotive revenue up 4% to DKK 492 million, EBITDA down 21% to DKK 36 million due to rising production costs.

• Fibertex Personal Care revenue flat at DKK 474 million, EBITDA down 51% to DKK 40 million, impacted by one-off costs and Asian competition.

• Fibertex Nonwovens revenue up 8% to DKK 563 million, EBITDA down 14% to DKK 42 million, affected by US startup issues and hurricane disruptions.

Outlook and guidance

• Full-year 2024 revenue guidance narrowed to DKK 34.1–35.7 billion, with EBITDA guidance at DKK 2,810–2,980 million, reflecting market softness and one-off costs.

• BioMar, GPV, Fibertex Nonwovens, and Fibertex Personal Care all lowered or narrowed guidance due to market conditions.

• Market recovery is not expected in 2024, but substantial margin improvement is anticipated compared to 2023.