NKT A/S Q1 2024 Interim Report: 27% organic growth and investments in Solutions and Applications
May 08 2024 - 1:31AM
NKT A/S Q1 2024 Interim Report: 27% organic growth and investments
in Solutions and Applications
Company Announcement
8 May 2024Announcement No. 13
NKT A/S Q1 2024 Interim Report: 27% organic growth and
investments in Solutions and Applications
NKT CEO Claes Westerlind says:
- We have had a successful start to 2024 with continued growth
in revenue and operational EBITDA, driven by satisfactory execution
and high utilization of existing and expanded capacity. After
another significant project award in Q1, NKT’s leading position in
the high-voltage market was once again confirmed and our order
backlog reached a new record level. To strengthen our position
further, we have initiated additional investments in Solutions and
Applications, which are expected to be value accretive to
shareholders.
Financial highlights
|
|
|
EURm |
Q1 2024 |
Q1 2023 |
Revenue* |
534 |
422 |
Organic
growth |
27% |
34% |
Operational EBITDA |
75 |
57 |
Operational EBITDA margin* |
14.1% |
13.5% |
* Std. metal prices
2024 financial outlookThe financial outlook is
unchanged from Company Announcement No. 3 of 21 February 2024.
Revenue (in std. metal prices) is expected to be approximately
EUR 2.21-2.36bn and operational EBITDA is expected to be
approximately EUR 285-335m.
The financial outlook is based on several assumptions
including:
- Satisfactory execution and development of high-voltage
investments and projects without major disruptions
- Stable market conditions in Applications
- Stable development of the global economy
- Stable supply chain with limited disruptions and access to the
required labour, materials and services
- Stable development in foreign currency and metal prices
Positive development in revenue and operational
EBITDA In Q1 2024, NKT’s revenue (in std. metal prices)
grew by EUR 112m compared to Q1 2023, corresponding to 27% organic
growth. Satisfactory execution in Solutions on existing and
expanded capacity was responsible for the majority of growth.
Driven by strong growth in revenue, operational EBITDA increased
to EUR 75m in Q1 2024, up by EUR 18m from Q1 2023. The higher
earnings level came primarily from Solutions, which made up an
incrementally higher share of total earnings compared to Q1 2023.
This was partially offset by a higher cost base, as NKT continued
to expand across business lines.
In Q1 2024, the high-voltage order backlog took another step up
to a new record-high level of EUR 11.5bn (EUR 10.1 in std. metal
prices). This was driven by the award of two onshore power cable
projects by German Transmission System Operator, Amprion. Supported
by these awards and a strong high-voltage market outlook, NKT will
invest approximately EUR 100m in additional capacity at its
existing factory in Cologne, Germany.
To support growing demand for medium-voltage power cables and
the ongoing electrification of society, NKT will also invest an
additional approximately EUR 100m to expand capacity and
capabilities at its medium-voltage factories in Czech Republic,
Denmark, and Sweden. The investments in Solutions and Applications
will support NKT’s medium-term financial ambitions, including
delivering RoCE above 20%.
TeleconferenceNKT A/S hosts a teleconference
for investors and financial analysts at 10:00am CEST on 8 May 2024.
The presentation to be used during the call will be available
before the start of the teleconference. To attend, please register
and access on investors.nkt.com
ContactsInvestor Relations: Michael Nass
Nielsen, Head of Investor Relations, Tel.: +45 2494 1654Media
Relations: Louise Westh Naldal, Head of Group Communications, Tel.:
+45 2982 0022
- NKT_Q124_Final version
- Cover letter_Q1_2024_UK
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