Denmark's Schouw & Co's earnings rise 28% in Q1FY24

“We are focused on improving the EBITDA in our businesses and on creating good cash flow from operating activities, and we have succeeded in doing so in Q1. The improved earnings are first and foremost the result of an unprecedented quarter in our largest business, BioMar, that increased earnings by 131 per cent resulting in DKK 270 million ($38.85 million) (EBITDA), while Borg Automotive and Fibertex Nonwovens also reported a better result than last year,” said CEO of Schouw & Co, Jens Bjerg Sørensen.

“We have had a satisfactory start to 2024, and we are now raising our full-year EBITDA guidance by DKK 60 million ($8.63 million). We now expect earnings in the range of DKK 2,740-3,040 million (EBITDA). The increased earnings in Q1 should be seen in the light of the fact that the Group’s revenue of DKK 7.9 billion was 9 per cent lower than last year, primarily due to lower prices for raw materials and components,” added Sørensen.

Over the past years, Schouw & Co has worked towards adapting to volatile market conditions. Geopolitical conflicts, challenges in global supply chains and economic downturn in some markets require that the six portfolio businesses are able to respond to these conditions, the company said in a press release.

“It is a complex task, given that our six businesses have more than 100 facilities across 35 countries, but the businesses have been very good at adapting. There is no doubt that the Group’s risk diversification provides us with good opportunities for development. At the same time, our financial strength allows the businesses to position themselves well, with access to production facilities and supply,” explained Sørensen.

Schouw & Co has a positive view of the group’s performance for the remainder of 2024, due to among other factors, the adaptability of the businesses. The group expects to maintain the high activity level of 2023, where the revenue of DKK 37.2 billion and the EBITDA of DKK 2.85 billion were at the highest level in the Group’s 145-year history. The positive outlook on 2024 is due to not least good underlying demand in Q2.

Fibre2Fashion News Desk (RR)