No 11 Solar increases its 2021 EBITDA with 75 million DKK

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Based on preliminary reports, Solar increases its guidance for 2021 EBITDA to DKK 725 million from DKK 650 million.

In addition, we are increasing our revenue forecast from DKK 200 million to DKK 11,750 million compared to our previous forecast of DKK 11,550 million presented in announcement no. 2 Annual report 2020 of February 11, 2021.

CEO Jens Andersen says:
“The introduction of the CORE + strategy has already had an effect on our product mix. Our concept share continued to grow at a faster rate than expected, resulting in a higher EBITDA margin in Q1.

In addition, our Better Business project and overall cost containment continued to perform well throughout the first quarter – however, costs are expected to partially normalize to pre-COVID-19 levels as we move forward. progress in 2021, although at a lower level than initially expected.

In 2021, we expect to see extraordinary price increases on some products due to rising commodity prices. These price increases will have a one-off impact which, to a lesser extent, will have a positive impact on our margins. “

Key Q1 Financial Messages

  • Supported by strong growth rates in the Installation segment of Solar Danmark, sales amounted to DKK 3,004 million and exceeded expectations.

  • Project Better Business and continued developments in concept sales contributed to a gross profit margin of 21.9%. The increase in gross profit margin is attributed to all markets.

  • Costs were reduced from DKK 27 million to DKK 454 million, despite a negative currency effect of DKK 4 million.

Financial Highlights (DKK million)

Q1 2021

Q1 2020

Returned

3,004

3,045

Gross profit

658

623

EBITDA

204

142

EBITA

157

97

EBIT

143

82

Financial ratios (%)

Organic growth adj.

-0.6

1.4

Gross margin

21.9

20.5

EBITDA margin

6.8

4.7

Orientation 2021

Guidance overview (Millions of DKK)

Updated guide

Original guidance

Returned

11,750

11,550

EBITDA

725

650

General assumptions

Due to the COVID-19 pandemic, our market outlook reflects increased risk. The updated guidelines are based on several assumptions:

  • COVID-19 will not result in significant new lockdowns in our business segments or other spillover effects related to COVID-19.

  • The CORE + strategy is expected to continue to positively affect the gross margin.

  • Cost containment measures should continue. Despite these measures, costs are expected to normalize in part to pre-COVID-19 levels, but to a lower level than initially expected.

  • No significant restructuring costs are required.

  • The loss on trade receivables remains at the 2020 level.

Income advice

We now expect sales of DKK 11,750 million, corresponding to organic growth of approx. 1%. The Better Business project is an integral part of our strategic directions in the CORE + strategy and is expected to reduce turnover by DKK 200 million compared to 2020. Adjusted for this, we expect organic growth of approx. 3%.

DKK 600 million of expected income can be attributed to related activities.

EBITDA orientation

We expect that the strategic directions will continuously improve profits, generating EBITDA of DKK 725 million. About. DKK 15 million of the expected EBITDA can be charged to related activities.

Contacts

CEO Jens Andersen – tel. +45 79 30 02 01
Chief Financial Officer Michael H. Jeppesen – tel. +45 79 30 02 62
IR Director Dennis Callesen – tel. +45 29 92 18 11

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