NKT A/S Annual Report 2023: 36% organic growth and record-high operational EBITDA
21 February 2024 - 5:30PM
NKT A/S Annual Report 2023: 36% organic growth and record-high
operational EBITDA
Company Announcement
21 February 2024Announcement No. 3
NKT A/S Annual Report 2023: 36% organic growth and
record-high operational EBITDA
NKT CEO Claes Westerlind, on 2023 performance:
- 2023 was a successful year for NKT with organic revenue growth
of 36% and the highest annual operational EBITDA in company
history. Demand for high-voltage power cable systems was
unprecedented during the year. This led to a record order intake
bringing our high-voltage order backlog to EUR 10.8bn and the
launch of an approximately EUR 1bn investment program. We enter
2024 with a robust financial position that forms the foundation for
further improvement of financial performance.
Financial highlights
|
|
|
|
EURm |
Q4 2023 |
Q4 2022 |
2023 |
2022 |
Revenue |
536* |
389* |
1,927* |
1,447* |
Organic
growth |
40% |
35% |
36% |
15% |
Operational EBITDA |
63.2 |
39.7 |
254.6 |
154.5 |
Operational EBITDA margin |
11.8%* |
10.2%* |
13.2%* |
10.7%* |
* Std. metal prices
2024 financial outlookRevenue (in std. metal
prices) is expected to be approx. EUR 2.21-2.36bn and the
operational EBITDA is expected to be approx. 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
- Normalized offshore power cable repair activity
- 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
High growth in revenues and operational EBITDA driven by
Solutions and ApplicationsIn 2023, NKT achieved revenues
(in std. metal prices) of EUR 1,927m, equalling organic revenue
growth of 36% compared to 2022, which was driven by further growth
in Solutions and Applications. Increased revenues and efficiency
initiatives led to the highest annual operational EBITDA in company
history. NKT’s net result from continuing operations for 2023
amounted to EUR 118.7m, an increase of EUR 63.6m from 2022.
Furthermore, free cash flow increased, driven by a larger positive
EBITDA contribution and improved working capital position. This
more than offset a higher investment level.
In Solutions, NKT posted organic growth of 59%. This was driven
by satisfactory execution of orders awarded in recent years
covering several power cable solutions; as well as a previous
capacity expansion investment program that contributed to financial
performance. Higher revenues and a continued focus on profitability
saw operational EBITDA increase to a new high of EUR 182m in 2023
from EUR 106m in 2022.
NKT achieved a record-high annual order intake of EUR 7bn in
2023 driven by project awards across Europe, primarily based on DC
technology. In May 2023, NKT launched the largest investment
program in company history, which will see investments of approx.
EUR 1bn to increase capacity and capabilities when assets gradually
become operational from 2027. Exiting 2023 with a high-voltage
order backlog of EUR 10.8bn, Solutions will continue to focus on
execution, and is well positioned to meet demand for high-voltage
power cable systems.
In 2023, Applications improved its financial performance,
posting 15% organic growth in revenues and an operational EBITDA
that more than doubled compared to 2022. Profitability continued to
strengthen, driven by demand for power grid and renewable energy
technology, as well as previously launched efficiency initiatives.
Applications concluded 2023 with an operational EBITDA margin of
9.2%, compared to 5.2% in 2022.
In Service & Accessories, the organic growth was -2% in
2023. The development reflected limited offshore repair work within
the Service business, but positive developments within Accessories.
As a result, operational EBITDA decreased to EUR 18.6m in 2023 from
EUR 25.7m in 2022.
NKT demonstrated continued commitment to
sustainability In 2023, NKT continued to execute on its
sustainability strategy, including the roadmaps aligned with the
corporate decarbonization targets for 2030, which were approved and
validated by the Science Based Target initiative in September 2023.
NKT is progressing as expected and continues to advance towards its
commitments of increasing the positive impacts of its products and
solutions, minimizing environmental impacts, strengthening
diversity and inclusion, and fostering an inclusive corporate
culture.
TeleconferenceNKT A/S hosts a teleconference
for investors and financial analysts at 10:00am CET on 21 February
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_Annual_Report_2023
- NKT_Annual_Report_2023_ESEF tagged
- NKT_Group_Sustainability_Report_2023
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