Interim report
Third quarter 2024
Company announcement no. 62
12 November 2024
Management’s report
4 A word from our CEO
4 Quarterly highlights
5 Financial highlights
6 Interim report – Third quarter 2024
9 Outlook
11 Management’s statement
CONTENTS
Our businesses
13 Portfolio company financial highlights – Q3
14 Portfolio company financial highlights – YTD
15 BioMar
20 GPV
24 HydraSpecma
28 Borg Automotive
32 Fibertex Personal Care
36 Fibertex Nonwovens
Interim report
41 Statements of income and comprehensive income
42 Cash flow statement
43 Balance sheet · Assets and liabilities
44 Statement of changes in equity
45 Notes
Financials ReportContents
Interim report for Q3 20242
Overall, Q3 2024 was a good quarter for Schouw & Co. with solid profitability
and continued strong cash flow generation. Our portfolio companies operate
in volatile and uncertain environments with tough competition and constant
pressure on prices and volume. Despite the current market conditions and lower
revenue, we are very satisfied with our ability to increase the gross margin and
continuously improve efficiency in our operations.
The business model in Schouw & Co. is focused on generating return on invest-
ments and thereby creating value for both our businesses and our shareholders.
Our businesses are strongly positioned to utilise recent year’s investments, and
they have good opportunities to continue to generate solid cash flow.
Schouw & Co. has always applied a best ownership philosophy, and we see
long-term and attractive development opportunities in all our businesses.
To future-proof Schouw & Co., we have initiated an evaluation of a possible
separate listing of BioMar with the purpose of investigating whether it will be
value-creating for Schouw & Co. and at the same time securing BioMar the best
opportunities for continued growth. Schouw & Co. intends to remain a majority
shareholder if the evaluation should lead to a separate listing of BioMar.
Jens Bjerg Sørensen, President and CEO
Good adaption to a
volatile environment
Quarterly highlights
13.3%
ROIC excluding goodwill
– a 0.9 pp increase
9.5
1.2
834
14.6
DKKbn revenue
– a 9% reduction
DKKbn cash flows from opera-
tions – a DKK 0.3 billion reduction
DKKm EBITDA
– an 8% decrease
DKK earnings per share
– a 14% decrease
A word from our CEO
Management’s report Interim report for Q2 20244 Interim report for Q3 20244
Financials ReportContents
Group summary (DKKm) Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023
REVENUE AND INCOME
Revenue 9,543 10,515 26,119 28,359 37,210
EBITDA 834 909 2,222 2,086 2,849
Depreciation and impairment 268 275 827 802 1,121
EBIT 566 634 1,395 1,284 1,727
Profit after tax in associates and joint ventures 28 0 35 37 8
Net financial items -107 -79 -366 -288 -369
Profit before tax 487 555 1,064 1,032 1,367
Profit for the period 357 421 760 756 991
CASH FLOWS
Cash flows from operating activities 1,158 1,490 1,665 1,748 1,777
Cash flows from investing activities -170 -157 -488 -1,009 -1,521
Of which investment in property, plant and equipment -178 -141 -522 -646 -819
Cash flows from financing activities -959 -1,111 -960 -606 -367
Cash flows for the period 29 222 218 133 -111
INVESTED CAPITAL AND FINANCING
Invested capital (excluding goodwill) 15,281 15,006 15,281 15,006 15,648
Total assets 28,592 29,741 28,592 29,741 27,896
Working capital 7,057 6,710 7,057 6,710 7,225
Net interest-bearing debt (NIBD) 5,890 5,714 5,890 5,714 6,339
Share of equity attributable to shareholders of Schouw & Co. 10,789 10,582 10,789 10,582 10,656
Non-controlling interests 907 921 907 921 900
Total equity 11,696 11,503 11,696 11,503 11,556
FINANCIAL KEY FIGURES
EBITDA margin (%) 8.7 8.6 8.5 7.4 7.7
EBIT margin (%) 5.9 6.0 5.3 4.5 4.6
EBT margin (%) 5.1 5.3 4.1 3.6 3.7
Return on equity (%) 8.9 8.3 8.9 8.3 8.9
Equity ratio (%) 40.9 38.7 40.9 38.7 41.4
ROIC excluding goodwill (%) 13.3 12.4 13.3 12.4 12.8
ROIC including goodwill (%) 11.2 10.4 11.2 10.4 10.7
NIBD/EBITDA ratio 2.0 2.1 2.0 2.1 2.2
Average no. of employees 14,827 15,662 14,967 15,534 15,488
SHARE RELATED KEY FIGURES
Earnings per share (of DKK 10) 14.65 16.99 31.31 30.47 39.78
Diluted earnings per share (of DKK 10) 14.62 16.99 31.27 30.44 39.76
Net asset value per share (of DKK 10) 466.21 449.80 466.21 449.80 454.17
Share price, end of period 582.00 470.50 582.00 470.50 553.00
Price/Net asset value 1.25 1.05 1.25 1.05 1.22
Market capitalisation, end of period 13,468 11,069 13,468 11,069 12,975
Financial highlights
Revenue, third quarter
DKKbn
EBITDA, third quarter
DKKm
EBIT, third quarter
DKKm
Return on invested capital, third quarter
ROIC excluding goodwill
6.1
6.9
9.2
10.5
9.5
2020 2021 2022 2023 2024
676
609
677
909
834
2020 2021 2022 2023 2024
465
388
448
634
566
2020 2021 2022 2023 2024
14.2
15.0
11.3
12.4
13.3
2020 2021 2022 2023 2024
Management’s report
Financials ReportContents
Interim report for Q3 20245
Financial review
Overall, Schouw & Co. performed
well in the first three quarters of 2024.
Although revenue fell compared to
the year-earlier period, due to a com-
bination of lower volumes in certain
business areas and lower prices of a
range of raw materials and compo-
nents, earnings improved. While the
first half of 2024 saw a substantial
year-on-year increase in earnings,
the earnings development appears to
have softened in Q3 2024 compared
with the very solid earnings reported
for Q3 2023.
Nevertheless, the overall Q3 perfor-
mance was quite strong. The main
contributor was BioMar, the Group’s
largest portfolio company, while the
companies that are more exposed
to developments in international
industrial production are feeling the
effects of a more challenging market
environment.
Being present in a broad range of
industries across many markets
exposes Schouw & Co. to changes in
the global economy and major geo-
political tensions, which are causing
uncertainty in several international
markets of importance to Group
sales. On the other hand, however,
the diversification of the Schouw &
Co. Group provides stability, ena-
bling the Group’s businesses to act
appropriately and with a long-term
perspective.
Revenue for Q3 2024 fell by 9% to
DKK 9,543 million. The decline was
generally driven by reduced volume
sales coupled with lower prices. The
revenue setback, which was for the
most part predicted, was attributable
to BioMar and GPV, while Fibertex
Nonwovens and Borg Automotive
reported revenue improvements
in the quarter. For the first three
quarters of 2024, revenue was down
by 8% year-on-year to DKK 26,119
million.
EBITDA for Q3 2024 was down by
8% to DKK 834 million. The decline
compared to the very strong Q3
2023 was mainly attributable to Fib-
ertex Personal Care and was caused
in part by one-off costs related to
operational changes in Malaysia,
but the other Group companies also
reported softer results. EBITDA for
the first three quarters of 2024 was
up by 7% year-on-year to DKK 2,222
million.
Non-consolidated joint ventures
and associates, which are recog-
nised in the consolidated financial
statements at a share of profit after
tax, contributed a DKK 28 million
Solid performance given
the circumstances
Interim report – Third quarter 2024
As expected, consolidated revenue for Q3 2024 was down on the year before,
driven by a drop in volume sales combined with lower prices. EBITDA was also
down compared to the very strong Q3 2023. Cash flows from operations remained
at a high level.
Quarter
(DKKm) Q3 2024 Q3 2023 Change
Revenue 9,543 10,515 -972 -9%
EBITDA 834 909 -75 -8%
EBIT 566 634 -69 -11%
Income from associates etc. 28 0 28 n/a
Profit before tax 487 555 -69 -12%
CF from operating activities 1,158 1,490 -332 -22%
Year to date
(DKKm)
YTD
2024
YTD
2023 Change
Revenue 26,119 28,359 -2,240 -8%
EBITDA 2,222 2,086 136 7%
EBIT 1,395 1,284 111 9%
Income from associates etc. 35 37 -3 -7%
Profit before tax 1,064 1,032 31 3%
CF from operating activities 1,665 1,748 -83 -5%
Working capital 7,057 6,710 348 5%
Net interest-bearing debt 5,890 5,714 176 3%
ROIC excluding goodwill 13.3% 12.4% 0.9%
ROIC including goodwill 11.2% 10.4% 0.8%
Management’s report
Financials ReportContents
Interim report for Q3 20246
share of profit for Q3 2024 com-
pared with a DKK 0 million share of
profit in Q3 2023. The increase in
profits was mainly attributable to
associates of BioMar, with Chilean
fish farming company Salmones
Austral being positively impacted
by increased settlement prices for
farmed fish.
The Group’s net financial expenses
increased from an expense of DKK
79 million in Q3 2023 to an expense
of DKK 107 million in Q3 2024. The
amount breaks down into an increase
in net interest expenses from DKK
107 million in Q3 2023 to DKK 116
million in Q3 2024, while foreign
exchange adjustments etc. produced
an income of DKK 9 million in Q3
2024 compared with an income of
DKK 28 million in Q3 2023.
Consequently, profit before tax in Q3
2024 decreased to DKK 487 million
from DKK 555 million in Q3 2023.
Profit before tax for the first three
quarters of 2024 grew by 3% year-
on-year to DKK 1,064 million.
Liquidity and capital resources
Schouw & Co.’s operations produced
a DKK 1,158 million cash inflow in Q3
2024, compared with a DKK 1,490
million cash inflow in the year-earlier
period. BioMar in particular and,
to some degree, Borg Automotive,
Fibertex Personal Care and GPV
reported lower cash flows than
last year, while HydraSpecma and
Fibertex Nonwovens improved their
cash flows.
Cash flows for investing activities
in Q3 2024 amounted to DKK 170
million, broadly split across all busi-
nesses. By comparison, investments
in Q3 2023 totalled DKK 157 million,
equally broadly split.
Working capital decreased by DKK
495 million in Q3 2024 from DKK
7,553 million at 30 June 2024.
Year-on-year, the Group’s overall
working capital grew from DKK 6,710
million at 30 September 2023 to DKK
7,057 million at 30 September 2024.
The overall increase year-on-year
covers multiple changes among the
underlying companies, with GPV in
particular having reduced its working
capital tie-up and BioMar having
increased its working capital tie-up.
The net interest-bearing debt
decreased by DKK 823 million during
the third quarter to stand at DKK
5,890 million at 30 September 2024.
Year-on-year, the net interest-bear-
ing debt increased by DKK 176
million from DKK 5,714 million at 30
September 2023. Due to the earn-
ings improvement, the financial gear-
ing (NIBD/EBITDA ratio) improved
from 2.1 to 2.0 year-on-year.
Group developments
During the past couple of years, the
portfolio companies of the Group
have worked intensively to align their
businesses to a world of ever more
volatile market conditions. Being
able to react quickly to different
conditions requires significant
adaptability and commitment. The
Group’s industrial and geographic
diversification makes this a complex
task, but at the same time, it spreads
risk and leads to promising develop-
ment opportunities.
Thanks to the Group’s financial
strength, the portfolio compa-
nies have been able to build solid
positions with access to production
capacity and supplies. Generally,
the portfolio companies appear to
be at least maintaining their market
shares, but several of their customers
are struggling – especially in the
industrial area.
Management’s report
Financials ReportContents
Interim report for Q3 20247
The following is a brief review of
individual company performances in
the third quarter of 2024:
BioMar reported volume sales down
8% from Q3 2023, and in combination
with lower prices of a number of raw
materials, this caused revenue to drop
by 12% relative to Q3 2023. EBITDA,
on the other hand, was maintained
close to the exceptionally strong Q3
2023 level in spite of decreased sales
volumes. The Salmon Division in
particular performed well.
GPV reported revenue down 13% on
the year before, which was generally
expected. The lower level of activity
also impacted EBITDA, which fell
by 6% compared to Q3 2023. While
the EBITDA development was better
than expected thanks in part to
reversed inventory impairment and
efficient control of costs related to
manufacturing, the company was not
able to adjust other costs at the rate
by which revenue dropped.
HydraSpecma generated reve-
nue on a par with Q3 2023 with
increased activity in Renewables,
Marine and Defense largely com-
pensating for lower activity levels
in other segments. EBITDA also
matched that of the third quarter of
last year.
Borg Automotive reported a 4% rev-
enue improvement despite a general
slowdown in sales of both remanu-
factured and trade products. EBITDA
was down by 21% compared to Q3
2023, in part due to increased pro-
duction costs as a result of increased
minimum wages in Poland.
Fibertex Personal Care generated
revenue on a par with Q3 2023,
derived through a combination of
lower sales prices and increased
volume sales compared to the previ-
ous year. However, realised EBITDA
dropped substantially, driven by
lower margins in the Asian market as
a result of strong competition in the
region. Further, the result includes
one-off costs related to operational
changes in Malaysia.
Fibertex Nonwovens reported
revenue up by 8%. The revenue
improvement was mainly driven by an
increase in volumes sold which more
than offset the effects of reduced
selling prices and adverse foreign
exchange developments. Despite the
revenue growth, EBITDA fell by 14%.
The US operations remained a drag
on earnings, further challenged by
a loss of power as Hurricane Helene
swept through South Carolina.
Events after the balance sheet
date
After 30 September 2024, Borg
Automotive has entered into an
agreement to acquire a subcontrac-
tor located in Tunisia. The transac-
tion is expected to be finalised during
Q4 2024.
Further, Schouw & Co. has initiated
an evaluation of a possible separate
listing of BioMar with the purpose
of investigating whether it will be
value-creating for Schouw & Co. and
at the same time securing BioMar
the best opportunities for continued
growth. Schouw & Co. intends to
remain a majority shareholder if the
evaluation should lead to a separate
listing of BioMar.
Other than this and as set out
elsewhere in this interim report,
Schouw & Co. is not aware of any
events occurring after 30 September
2024 which are expected to have
any material impact on the Group’s
financial position or outlook.
Accounting policies
The interim report is presented in
accordance with IAS 34 “Interim
financial reporting” as adopted
by the EU and Danish disclosure
requirements for the consolidated
and parent company financial state-
ments of listed companies.
See the 2023 Annual Report for a
full description of the accounting
policies. In addition, Schouw & Co.
is implementing the standards and
interpretations which are effective
from 2024.
Judgments and estimates
The preparation of interim financial
statements requires management
to make accounting judgments
and estimates that affect recog-
nised assets, liabilities, income and
expenses. Actual results may differ
from these judgments and estimates.
Special risks
The overall risk factors the Schouw &
Co. Group is facing are discussed in
the 2023 Annual Report. The current
assessment of special risks is largely
unchanged from the assessment
applied in the preparation of the
2023 Annual Report.
Roundings and presentation
The amounts appearing in this
interim report have generally been
rounded to the nearest million
using standard rounding principles.
Accordingly, some additions may not
add up.
Schouw & Co. shares
The price of Schouw & Co. shares appreciated
by 6% during the third quarter to DKK 582.00
at 30 September 2024 from DKK 547.00 at 30
June 2024. At 31 December 2023, the price per
share was DKK 553.00.
Management’s report
Financials ReportContents
Interim report for Q3 20248
Outlook for 2024
Right from the beginning of the year,
it was clear that the 2024 outlook
would be anything but stable. The
global economy is undergoing
drastic change, which – combined
with major geopolitical tensions – is
causing uncertainty in several of the
international markets of importance
to Schouw & Co. sales.
From the turn of the year, Schouw
& Co. expected business activity
to soften in the first half of 2024, in
part due to value chain adjustments
after a very high level of activity in the
second half of 2023. The outlook for
activity levels in the second half of
2024 was more positive but has not
entirely materialised for the industry
in general.
Still, Schouw & Co. as a whole has
managed to cope with the changed
demand, although softer volumes
in certain business areas combined
with lower prices of a range of raw
materials and components have put
pressure on revenue.
Overall, the portfolio companies have
managed to protect margins and
maintain earnings at a fair level, even
compared with the strong EBITDA of
2023. The largest company, BioMar,
is performing really well, while
companies that are more exposed
to developments in industrial
production are generally feeling the
effects of a more challenging market
environment. This applies especially
to GPV.
The following is a brief review of reve-
nue and EBITDA forecasts for the
individual companies in 2024:
BioMar lowers its full-year revenue
guidance based on updated fore-
casts for raw material prices com-
bined with the most recent prospects
for volume sales. The reduced reve-
nue has a limited impact on earnings,
and the EBITDA forecast for the year
Full-year expectations
narrowed
Outlook
Changes to the global economy and major geopolitical tensions are still causing
uncertainty, postponing growth expectations for industrial production generally.
Full-year revenue guidance is adjusted downwards, while EBITDA guidance is
narrowed towards the lower end of the range.
Management’s report
Financials ReportContents
Interim report for Q3 20249
is narrowed towards the lower part of
the previously expected range.
GPV is still faced with a challenging
market environment, in line with
the industry in general. Overall, the
industry is marked by soft activity
that is not likely to change in the
short term. Against this background,
GPV narrows its full-year revenue
and EBITDA guidance towards the
lower part of the previously expected
range.
HydraSpecma expects to maintain
business activity at the strong level
seen in 2023, despite persistent
uncertainty among customers
regarding future demand. Full-year
revenue guidance is maintained,
while EBITDA guidance is increased.
Borg Automotive is experiencing a
general slowdown in sales of both
remanufactured and trade products,
while earnings are impacted by
fierce competition and increasing
production costs. Borg Automotive
maintains its full-year revenue guid-
ance, while narrowing the EBITDA
guidance towards the lower end of
the previously expected range.
Fibertex Personal Care expects a
fair level of activity in Europe but
tough competition in Asia, where
production capacity will be adjusted.
Against this background, Fibertex
Personal Care maintains its full-year
revenue guidance, while EBITDA
guidance is reduced based on
one-off expenses relating to the
operational changes in Malaysia.
Fibertex Nonwovens is experienc-
ing further softened demand from
certain customers. Full-year revenue
and earnings are still expected to
increase compared to 2023, but
both revenue and EBITDA guidance
is lowered relative to the previous
expectations.
Schouw & Co. Group’s overall
guidance
Schouw & Co. generates a substan-
tial part of its revenue by converting
raw materials or by processing
procured components. As a result,
changes in prices of materials and
foreign exchange rates may have a
significant impact on revenue, even
though underlying activity may be
unchanged. Similarly, changes in
revenue resulting from changes in
prices of materials will not necessar-
ily trickle down to earnings.
Based on updated forecasts for raw
material prices, combined with the
most recent prospects for activities
during the rest of the year, especially
in BioMar, the Group adjusts its 2024
revenue guidance range downwards.
Overall, Schouw & Co. now projects
full-year 2024 consolidated revenue
in the DKK 34.1-35.7 billion range
against the previous range of DKK
34.2-36.4 billion.
Schouw & Co. provides consolidated
earnings guidance at EBITDA level
based on an aggregation of individ-
ual portfolio company forecasts, but
actual portfolio company EBITDA
results may deviate from these
individual forecasts over the year.
Accordingly, the actual guidance
is expressed through consolidated
EBITDA, which for 2024 is now
expected to be in the range of DKK
2,810-2,980 million, a narrowing
towards the lower end of the previous
range of DKK 2,810-3,060 million.
Total depreciation, amortisation and
impairment charges are still esti-
mated at approximately DKK 1,150
million for 2024. As a result, the
Group guides for consolidated 2024
EBIT in the range of DKK 1,660-
1,830 million.
Associates and joint ventures, which
are predominantly part of the BioMar
business, are still expected to
contribute a combined share of profit
after tax of approximately DKK 40
million for 2024.
The Group’s net financial items are
still expected to be an expense of
around DKK 460 million in 2024, as
the foreign exchange adjustments
etc. realised in Q3 2024 only had
a minor impact. The forecast is
subject to further changes in foreign
exchange rates or other adjustments
for the remainder of the year.
Revenue
(DKKm)
2024 guidance
after Q3
2024 guidance
after Q2
2023
actual
BioMar 16,500-17,000 16,500-17,500 17,878
GPV 8,900-9,200 8,900-9,300 10,450
HydraSpecma 2,900-3,100 2,900-3,100 2,972
Borg Automotive 1,900-2,100 1,900-2,100 1,876
Fibertex Personal Care 1,700-1,900 1,700-1,900 1,891
Fibertex Nonwovens 2,200-2,400 2,300-2,500 2,158
Other/eliminations - 0 -15
Total revenue 34,100-35,700 34,200-36,400 37,210
Profit/loss for the period
(DKKm)
2024 guidance
after Q3
2024 guidance
after Q2
2023
actual
BioMar 1,410-1,460 1,410-1,480 1,250
GPV 610-640 610-660 743
HydraSpecma 320-340 300-330 323
Borg Automotive 170-190 170-200 153
Fibertex Personal Care 160-180 170-200 262
Fibertex Nonwovens 200-220 210-240 169
Other -60-50 -60-50 -52
EBITDA 2,810-2,980 2,810-3,060 2,849
PPA depreciation -160 -160 -155
Other depreciation -990 -990 -966
EBIT 1,660-1,830 1,660-1,910 1,727
Associates and JVs 40 40 8
Net financial items -460 -460 -369
Profit before tax 1,240-1,410 1,240-1,490 1,367
Management’s report
Financials ReportContents
Interim report for Q3 202410
Management’s statement
Executive Management
Board of Directors
Financial calendar
Interim report for Q2 202411 Interim report for Q3 202411
Deadline for submis-
sion of proposals to be
considered at the annual
general meeting
FEBRUARY
27
MARCH
6
APRIL
10
MAY
2
AUGUST
15
NOVEMBER
12
Release of
2024
annual report
Annual general
meeting
Release of
Q2 2025
interim report
Release of
Q1 2025
interim report
Release of
Q3 2025
interim report
APRIL
15
Expected distribution
of dividend
Management’s report
Financials ReportContents
13 Portfolio company financial highlights – Q3 >
14 Portfolio company financial highlights – YTD >
15 BioMar >
20 GPV >
24 HydraSpecma >
28 Borg Automotive >
32 Fibertex Personal Care >
36 Fibertex Nonwovens >
OUR
BUSINESSES
Schouw & Co.’s business model is to own a diversified portfolio
of companies operating in various industries. While there are no
operational synergies between the companies, they share a common
modus operandi, and managing matters such as financing centrally
provides major financial benefits. All portfolio companies hold a leading
position in their industry or niche.
Interim report for Q3 202412
Financials ReportContents
Amounts in DKK million
Portfolio company
financial highlights –
Q3
Q3 BioMar GPV HydraSpecma Borg Automotive
Fibertex
Personal Care
Fibertex
Nonwovens Group
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
INCOME STATEMENT
Revenue 5,117 5,814 2,221 2,547 678 683 492 476 474 475 563 523 9,543 10,515
Contribution margin 630 623 326 331 184 183 107 113 75 111 100 101 1,421 1,463
EBITDA 463 470 186 197 79 80 36 45 40 81 42 49 834 909
Depreciation and impairment 81 91 79 77 34 32 17 18 30 31 27 25 268 275
EBIT 383 379 108 120 45 48 18 27 10 50 15 24 566 634
Profit after tax in associates and JVs 28 0 0 0 0 0 0 0 0 0 0 0 28 0
Net financial items -55 -56 -41 -25 -23 -9 -11 -15 -11 -12 -29 -22 -107 -79
Profit before tax 356 323 67 95 22 39 7 11 -1 38 -14 2 487 555
Tax on profit for the year -77 -73 -30 -28 -5 -8 -2 -3 -1 -10 -4 -1 -129 -134
Profit before non-controlling interests 279 250 37 67 18 31 5 8 -2 28 -18 1 357 421
Non-controlling interests -10 -8 0 0 0 0 0 0 0 0 0 -1 -17 -22
Profit for the period 269 243 37 67 18 31 5 8 -2 28 -19 0 340 400
CASH FLOWS
Cash flows from operating activities 806 1,168 85 111 111 11 11 83 45 77 31 -3 1,158 1,490
Cash flows from investing activities -27 -34 -39 -65 -27 -24 -38 -14 -29 -6 -8 -13 -170 -157
Cash flows from financing activities -759 -996 -71 0 -44 25 27 -61 -21 -55 -24 13 -959 -1,111
BALANCE SHEET
Intangible assets
1
1,343 1,467 997 1,037 585 606 232 268 60 61 112 123 4,356 4,589
Property, plant and equipment 1,688 1,736 1,051 1,031 512 449 255 202 1,270 1,225 1,444 1,506 6,242 6,170
Other non-current assets 1,137 1,274 377 338 136 128 155 132 26 42 8 7 1,874 1,950
Cash and cash equivalents 338 366 251 222 92 86 17 26 12 39 82 80 792 828
Other current assets 7,272 8,024 4,727 5,439 1,457 1,446 1,427 1,214 639 601 905 950 15,328 16,204
Total assets 11,778 12,868 7,403 8,067 2,782 2,716 2,086 1,842 2,008 1,968 2,551 2,667 28,592 29,741
Equity 3,234 3,155 2,382 2,335 1,021 925 614 530 988 1,007 810 889 11,696 11,503
Interest-bearing liabilities 3,454 3,709 2,793 2,865 1,168 1,193 754 480 579 563 1,364 1,403 6,862 6,712
Other liabilities 5,090 6,004 2,228 2,868 593 597 718 832 441 398 377 375 10,034 11,526
Total equity and liabilities 11,778 12,868 7,403 8,067 2,782 2,716 2,086 1,842 2,008 1,968
2,551 2,667 28,592 29,741
Average no. of employees 1,610 1,618 7,770 8,700 1,453 1,492 2,136 2,024 710 709 1,126 1,100 14,825 15,662
FINANCIAL KEY FIGURES
EBITDA margin 9.1% 8.1% 8.4% 7.7% 11.7% 11.8% 7.2% 9.5% 8.5% 17.0% 7.5% 9.4% 8.7% 8.6%
EBIT margin 7.5% 6.5% 4.8% 4.7% 6.7% 7.0% 3.7% 5.6% 2.1% 10.5% 2.7% 4.7% 5.9% 6.0%
ROIC excluding goodwill 26.1% 20.0% 9.1% 11.3% 12.8% 15.0% 11.3% 11.2% 4.4% 11.0% 4.9% 2.3% 13.3% 12.4%
ROIC including goodwill 19.5% 14.5% 8.4% 10.4% 11.0% 13.0% 7.9% 7.7% 4.2% 10.4% 4.6% 2.2% 11.2% 10.4%
Working capital 1,993 1,378 2,583 2,787 922 945 750 653 315 356 551 581 7,057 6,710
Net interest-bearing debt 2,173 1,936 2,346 2,507 1,028 1,088 715 438 566 524 1,282 1,313 5,890 5,714
1) Excluding consolidated goodwill in Schouw & Co.
Our businesses
Financials ReportContents
Interim report for Q3 202413
Amounts in DKK million
Portfolio company
financial highlights –
YTD
YTD BioMar GPV HydraSpecma Borg Automotive
Fibertex
Personal Care
Fibertex
Nonwovens Group
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
INCOME STATEMENT
Revenue 12,355 13,665 6,820 7,920 2,241 2,243 1,541 1,442 1,427 1,444 1,743 1,655 26,119 28,359
Contribution margin 1,578 1,287 916 991 604 576 354 329 235 303 333 288 4,021 3,773
EBITDA 1,094 853 486 565 253 249 139 118 134 210 159 130 2,222 2,086
Depreciation and impairment 261 258 237 229 100 94 56 55 90 92 82 73 827 802
EBIT 833 595 249 336 152 155 83 63 44 117 77 57 1,395 1,284
Profit after tax in associates and JVs 35 37 0 0 0 0 0 0 0 0 0 0 35 37
Net financial items -163 -151 -170 -138 -54 -30 -38 -11 -32 -27 -78 -74 -366 -288
Profit before tax 705 481 79 198 99 125 45 52 12 90 -1 -17 1,064 1,032
Tax on profit for the year -175 -106 -48 -82 -22 -26 -8 -11 -4 -22 -19 -7 -304 -276
Profit before non-controlling interests 530 376 31 115 76 99 36 41 8 69 -19 -24 760 756
Non-controlling interests -22 -17 0 0 0 0 0 0 0 0 -2 0 -30 -40
Profit for the period 508 359 31 115 76 99 36 41 8 69 -21 -24 730 716
CASH FLOWS
Cash flows from operating activities 882 1,147 264 79 192 116 -15 41 133 201 57 46 1,665 1,748
Cash flows from investing activities -112 -124 -129 -212 -75 -510 -51 -47 -80 -40 -39 -77 -488 -1,009
Cash flows from financing activities -613 -947 -116 112 -98 452 71 17 -50 -135 -4 9 -960 -606
BALANCE SHEET
Intangible assets
1
1,343 1,467 997 1,037 585 606 232 268 60 61 112 123 4,356 4,589
Property, plant and equipment 1,688 1,736 1,051 1,031 512 449 255 202 1,270 1,225 1,444 1,506 6,242 6,170
Other non-current assets 1,137 1,274 377 338 136 128 155 132 26 42 8 7 1,874 1,950
Cash and cash equivalents 338 366 251 222 92 86 17 26 12 39 82 80 792 828
Other current assets 7,272 8,024 4,727 5,439 1,457 1,446 1,427 1,214 639 601 905 950 15,328 16,204
Total assets 11,778 12,868 7,403 8,067 2,782 2,716 2,086 1,842 2,008 1,968 2,551 2,667 28,592 29,741
Equity 3,234 3,155 2,382 2,335 1,021 925 614 530 988 1,007 810 889 11,696 11,503
Interest-bearing liabilities 3,454 3,709 2,793 2,865 1,168 1,193 754 480 579 563 1,364 1,403 6,862 6,712
Other liabilities 5,090 6,004 2,228 2,868 593 597 718 832 441 398 377 375 10,034 11,526
Total equity and liabilities 11,778 12,868 7,403 8,067 2,782 2,716 2,086 1,842 2,008 1,968
2,551 2,667 28,592 29,741
Average no. of employees 1,596 1,605 7,957 8,671 1,467 1,442 2,108 2,001 707 709 1,110 1,087 14,967 15,534
FINANCIAL KEY FIGURES
EBITDA margin 8.9% 6.2% 7.1% 7.1% 11.3% 11.1% 9.0% 8.2% 9.4% 14.5% 9.1% 7.8% 8.5% 7.4%
EBIT margin 6.7% 4.4% 3.6% 4.2% 6.8% 6.9% 5.4% 4.4% 3.1% 8.1% 4.4% 3.4% 5.3% 4.5%
ROIC excluding goodwill 26.1% 20.0% 9.1% 11.3% 12.8% 15.0% 11.3% 11.2% 4.4% 11.0% 4.9% 2.3% 13.3% 12.4%
ROIC including goodwill 19.5% 14.5% 8.4% 10.4% 11.0% 13.0% 7.9% 7.7% 4.2% 10.4% 4.6% 2.2% 11.2% 10.4%
Working capital 1,993 1,378 2,583 2,787 922 945 750 653 315 356 551 581 7,057 6,710
Net interest-bearing debt 2,173 1,936 2,346 2,507 1,028 1,088 715 438 566 524 1,282 1,313 5,890 5,714
1) Excluding consolidated goodwill in Schouw & Co.
Our businesses
Financials ReportContents
Interim report for Q3 202414
BioMar is one of the world’s largest manufacturers of quality
feed for the fish and shrimp farming industries. The core
business areas are feed for salmonids as well as shrimp,
sea bass and European bass. Innovation is an integral
part of BioMar’s business model, coupled with a focus on
sustainability, which forms a key aspect of global aquaculture
today.
BioMar
Interim report for Q3 202415Our businesses > BioMar
Financials ReportContents
As one of the world’s largest manufacturers
of quality feed for farmed fish and shrimp,
BioMar is strongly and firmly positioned in
a long-term, attractive growth industry.
Carlos Diaz, CEO of BioMar
Market
Aquaculture plays a key role in the
food supply of the future, as fish farm-
ing is the best way to secure a more
sustainable approach to increasing
the supply of fish and avoid over-
fishing the oceans. There is a global
need for healthy and sustainable
sources of protein, and according to
FAO, the UN Food and Agriculture
Organization, the global production of
fish is expected to exceed the current
output. Already, more than 50% of
the world’s fish and shrimp are raised
in aquaculture, which is the fastest
growing food production industry.
Feed plays a very significant role in
aquaculture, being the predominant
factor in determining the nutritive
content and thereby the state of
health of a fish or shrimp. Feed is
also a major factor in the climate
impact of fish and shrimp farming, as
feed ingredients have a substan-
tial climatic impact. Continuous
investment in R&D is thus essential
when it comes to producing healthy
and sustainable fish and shrimp for
human consumption.
For many years, BioMar has been a
leading player in terms of ongoing
product development and working
with new, innovative and more
sustainable ingredients. With its cus-
tomised products for a broad range
of species combined with a presence
in Europe, Latin America and Asia,
BioMar has a strong, central position
in the market.
Geography
BioMar is headquartered in Aarhus,
Denmark, and the company’s
operations are divided into divisions.
The Salmon Division covers salmon
feed from feed factories in Norway,
Scotland, Chile and Australia.
The remaining feed operations are
divided geographically into: The
EMEA Division with factory sites in
Denmark, France, Spain, Greece and
Türkiye; the LatAm Division with fac-
tory sites in Ecuador and Costa Rica;
and the Asia Division with factory
sites in China and Vietnam. BioMar
also operates a Tech Division that is
focused on technology for develop-
ing more efficient and sustainable
intelligent feed solutions.
Ownership – past and present
In 2005, Schouw & Co. took a 68.8%
majority interest in BioMar, then a
listed company. BioMar became a
wholly-owned subsidiary following a
merger in 2008.
Revenue (DKKm)
11,180
11,649
13,300
17,861
17,878
2019 2020 2021 2022 2023
Interim report for Q3 202416Our businesses > BioMar
Financials ReportContents
Financial review
BioMar reported strong growth
in shrimp feed sales in Ecuador in
Q3 2024, which partly offset lower
volume sales in Norway, Chile and
Greece. Overall, volume sales in the
quarter thus fell by 8% on the same
period of last year.
The reported revenue reflected the
reduced volume sales, but also a
decline in prices of vegetable and
marine raw materials. Reported
Q3 2024 revenue of DKK 5,117
million marked a decrease of 12%
compared to Q3 2023. Exchange
rate developments had a negative
effect on revenue of close to DKK 70
million, mainly due to a weaker NOK
and USD against DKK. Year to date
revenue amounted to DKK 12,355
million, a 10% decrease compared
to 2023.
Overall, the Salmon Division
reported a year-on-year reduction in
sales volumes driven by Norway and
Chile. The sales volume was lower
despite a higher biomass in Norway,
but exceptionally high sea water
temperatures resulted in sea lice
outbreaks and reduced oxygen lev-
els, which reduced feed intake. The
lower volumes in Norway and Chile
also reflected BioMar prioritising
long-term profitable relationships
with fish farmers. However, BioMar
maintained earnings momentum,
supported by its broad product
offering, increased sales volumes of
functional feed, focus on opera-
tional and commercial excellence
and value creation with customers,
which combined to improve the
division’s earnings despite reduced
sales volumes compared to Q3
2023.
The EMEA Division reported volume
sales slightly down on the third quar-
ter of 2023. The lower sales volumes
are related to the Mediterranean
market, especially Greece, where
BioMar is taking a more cautious
approach to credit risk, prioritising
security of payments over market
share.
The LatAm Division reported a sub-
stantial year-on-year increase in vol-
ume sales. Earnings also improved
in a market otherwise challenged by
low prices of farmed shrimp. BioMar
continues to strengthen its offering
BioMar
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Volume, Salmon Division 278 322 644 743 972
Volume, other divisions 150 144 381 350 466
Total volume
(‘000 tonnes) 429 466 1,024 1,093 1,437
Revenue, Salmon Division 3,662 4,329 8,641 10,041 13,126
Revenue, other divisions 1,455 1,485 3,715 3,624 4,752
Total revenue 5,117 5,814 12,355 13,665 17,878
EBITDA, Salmon Division 309 326 740 539 842
EBITDA, other divisions 154 143 354 314 408
Total EBITDA 463 470 1,094 853 1,250
EBIT 383 379 833 595 860
CF from operations 806 1,168 882 1,147 665
Working capital 1,993 1,378 1,993 1,378 2,141
ROIC excluding goodwill 26.1% 20.0% 26.1% 20.0% 22.1%
ROIC including goodwill 19.5% 14.5% 19.5% 14.5% 16.2%
Continued strong
performance
BioMar
EBITDA remained strong in Q3 despite lower sales volumes. Revenue was down
year-on-year as a result of reduced volume sales and lower prices of a number of
raw materials. Full-year revenue guidance is lowered, while EBITDA guidance is
narrowed towards the lower part of the range.
Our businesses > BioMar
Financials ReportContents
Interim report for Q3 202417
of products, concepts and services,
mainly in the Ecuadorian market,
where the company has added new
production capacity in recent years
by way of two extruder lines.
The consolidated part of the Asia
Division, which covers operations in
Vietnam only, is still under develop-
ment. Volume sales have increased,
but not as much as expected, and
earnings from these operations
remain impacted by costs incurred
for market build-up purposes.
Operations in the Tech Division
reported a decrease in revenue.
While there has been sound market
interest in the technology solution,
customers are holding back on their
investments as they are feeling the
effects of currently low prices of
farmed shrimp. The division reported
lower earnings compared to Q3
2023, primarily reflecting the lower
revenue, but also investments in
strategic initiatives, new people and
competencies to extend product
offerings and strengthen the ability
to further accelerate growth plans in
current and new markets.
EBITDA for Q3 2024 was DKK 463
million, close to the DKK 470 million
reported for the exceptionally strong
Q3 2023. The EBITDA performance
was strong for a third quarter despite
the decreased sales volumes and
was mainly attributable to the
positive performance of the Salmon
Division, the strong product offering
and a series of excellence measures.
Exchange rate developments had
only a slight negative impact on per-
formance. Total EBITDA for the first
nine months of 2024 was DKK 1,094
million, compared to DKK 853 million
for the same period of 2023.
Working capital increased from
DKK 1,378 million at 30 September
2023 to DKK 1,993 million at 30
September 2024. While the lower
revenue and sales volumes in Q3
2024 contributed to reducing trade
receivables, BioMar is experiencing
growing pressure from customers
for extended credit terms. A change
in customer mix has an increasing
impact on trade receivables as well.
Inventories decreased year-on-year,
reflecting a structural reduction
in stock levels, but also a positive
impact by generally lower raw mate-
rial prices. However, lower-than-ex-
pected sales volumes impacted
negatively on inventories in some
business units. Trade payables fell
proportionately more than inven-
tories, partly because of a negative
impact from reduced utilisation of
supply chain financing facilities,
while exchange rate developments
contributed to reducing the working
capital by around DKK 75 million
compared to Q3 2023.
BioMar applies supply chain financ-
ing programmes intended, among
other things to ensure competitive
prices to customers and to develop
and strengthen long-term relations
in the supply chain. The use of supply
chain financing on the supplier side
decreased from DKK 978 million
at 30 September 2023 to DKK 700
million at 30 September 2024.
ROIC excluding goodwill remained
high at 26.1% at 30 September 2024
compared to 26.7% at 30 June 2024.
Joint ventures and associates
BioMar manufactures fish feed in
China and Türkiye through two 50/50
joint ventures with local partners.
These activities are not consoli-
dated, but due to their large growth
potential, being strongly represented
in these markets is very important
to BioMar.
These two feed businesses, covering
two factories in China and one fac-
tory in Türkiye, reported combined
Our businesses > BioMar
Financials ReportContents
Interim report for Q3 202418
revenue of DKK 362 million (100%
basis) and EBITDA of DKK 26 million
in Q3 2024, against revenue of DKK
438 million and EBITDA of DKK 40
million in Q3 2023. In Türkiye, the
revenue decline reflected efforts to
limit credit risk given the general
economic situation in the country,
while the decline in China reflected
adjustments in farming operations
due to low prices of farmed fish.
The associated businesses include
the Chilean fish farming company
Salmones Austral and three minor
businesses, LetSea, ATC Patagonia
and LCL Shipping.
The non-consolidated joint ventures
in China and Türkiye and the asso-
ciated businesses are recognised
in the consolidated financial state-
ments at a combined DKK 28 million
share of profit after tax in Q3 2024,
against DKK 0 million profit after tax
in Q3 2023. The higher profit was
mainly driven by Salmones Austral,
due to higher fish prices.
Business review
BioMar is committed to being a
strong partner for all its stakeholders
and is strongly focused on delivering
on the company’s sustainability
ambitions, which are demanded by
customers and consumers and are
essential for long-term value creation.
Sustainability efforts form an integral
part of BioMar’s strategy, which
includes a focus on the use of alter-
native raw materials and on generally
reducing the climate impact. Bio-
Mar’s strategy also centres on global
excellence programmes, commercial
as well as operational, intended to
strengthen customer service and
competitive strength while at the
same time tapping into the earnings
potential and optimising cash flows.
BioMar has an ambition to be recog-
nised consistently as an innovative
business supplying competitive
feed products and related technical
services to the professional fish
farming community. BioMar invests
in research and development on a
continuous basis and has several
highly trained specialists in the field.
The company has a long-standing
tradition for collaborating with
research institutions in several
countries, and fish farming operators
are often involved in development
processes.
Outlook
From an overall perspective, long-
term demand for farmed fish and
shrimp generally seems sound, but
with some signs of weakening in the
short term. This could potentially
impact negatively on farmed fish and
shrimp prices and, consequently,
affect profitability in the farming
industry. However, BioMar is well
positioned in the market thanks
to a high level of quality and a
strong focus on sustainability and
advanced fish and shrimp farming
technology.
In the short term, demand for feed is
likely to be affected by current mar-
ket conditions and by selling prices
of farmed fish and shrimp. In shrimp
farming, due to the short farming
period relative to salmon farming,
demand for feed is easily affected
by volume adjustments in farming
operations.
BioMar continually invests to
upgrade its global, cloud-based
ERP platform and state-of-the-
art manufacturing systems. The
substantial investments of more
than DKK 200 million will weigh
on earnings both in the current
and in the coming years, but will
also take BioMar to the next level
of digitalisation, higher efficiency,
more transparency, reduced manual
processes, live data interaction with
customers and global excellence
processes in the business units.
BioMar’s revenue is highly suscep-
tible to changes in prices of raw
materials and in foreign exchange
rates. Based on the updated outlook
and the most recent prospects for
volume sales, BioMar lowers its rev-
enue guidance for 2024 to the DKK
16.5-17.0 billion range from previ-
ously DKK 16.5-17.5 billion, while
its EBITDA guidance is narrowed to
DKK 1,410-1,460 million from previ-
ously DKK 1,410-1,480 million.
Associates and joint ventures are
recognised at a share of profit after
tax. The full-year forecast for the
share of profit after tax is maintained
at around DKK 40 million.
Our businesses > BioMar
Financials ReportContents
Interim report for Q3 202419
GPV is the second-largest European-headquartered EMS
(Electronics Manufacturing Services) business. GPV offers
services such as design, production, assembly and testing
of solutions in electronics, mechanics, cable harness
and mechatronics for a range of international blue chip
industrial customers. GPV’s solutions are used in customer
end-products in the market segments of Industrials,
Measurement & Control, BuildingTech, Transport,
CleanTech, MedTech and HighTech Consumer.
GPV
Interim report for Q3 202420Our businesses > GPV
Financials ReportContents
Revenue (DKKm)
Our role extends beyond EMS, and many of the
products we produce for our customers support the
green transition. With strong cost control, we remain
a trusted EMS technology partner for our customers.
Bo Lybæk, CEO of GPV
Market
Electronics play an ever more
prominent role in society, whether
in everyday life or in industry and
manufacturing. In these sectors, the
integration of electronics, increased
data usage, increased automation and
energy optimisation will serve to make
everyday life easier, optimise manu-
facturing processes, reduce resource
consumption and increase quality of
life. In the production of advanced
electronic applications, increased
specialisation results in a tendency
for many businesses to focus on their
core services and to outsource the
manufacturing of electronics to dedi-
cated EMS partners such as GPV.
GPV’s market is in the high-mix seg-
ment, which is characterised by highly
complex manufacturing processes.
GPV supplies many different products
to customers, in which electronics play
an increasingly important role. Many
of these products provide direct or
indirect support to the green transition
for use in work to optimise processes,
reduce energy consumption and sub-
sequently reduce carbon footprints.
The most important aspect of GPV’s
operations is the production and
assembly and testing of electronics,
and the company has the necessary
technologies available in Europe, Asia
and North America. The electron-
ics production is supplemented by
mechanical products and by cable
harness products from factories in
Europe and Asia.
In addition, GPV’s value proposition
to its customers includes a wide
range of key services, including
assisting in product application
design, prototyping, production
maturation, including test strategy
and systems, box build and system
integration as well as testing and
aftersales services. GPV is working
beyond EMS as an integrated EMS
technology partner for its customers.
Geography
GPV is headquartered in Vejle,
Denmark, and has manufacturing
facilities in Denmark, Sweden,
Finland, Estonia, Switzerland, Ger-
many, Austria, Slovakia, Sri Lanka,
Thailand, China and Mexico.
Ownership – past and present
GPV was founded in 1961 and
became a part of Schouw & Co.
in 2016. The company has
subsequently expanded through
transformational combinations
with a number of complementary
businesses, and today, GPV is the
second-largest European-headquar-
tered EMS business and in the global
top 25. Schouw & Co. holds an 80%
ownership interest in GPV.
2,856
2,887
3,191
5,923
10,450
2019 2020 2021 2022 2023
Interim report for Q3 202421Our businesses > GPV
Financials ReportContents
Financial review
GPV reported Q3 2024 revenue of
DKK 2,221 million, a 13% decline
from DKK 2,547 million in Q3 2023.
The lower revenue was expected due
to weakening demand from custom-
ers, driven largely by the continued
market re-balancing attributable
to the adjustment of inventories
following the normalisation of the
post-pandemic materials supply
situation. Following the very high
activity level of 2023, revenue for the
first three quarters of 2024 was down
by 14% year-on-year to DKK 6,820
million.
The lower level of activity affected
EBITDA, which came to DKK 186
million in Q3 2024 compared to
DKK 197 million in the same period
of 2023 – a 6% decline. While the
EBITDA development was better
than expected thanks in part to
reversed inventory impairment and
efficient control of costs related to
manufacturing, the company was
not able to adjust other costs at
the rate by which revenue dropped.
EBITDA for Q1-Q3 2024 was down
by 14% year-on-year to DKK 486
million.
Working capital fell to DKK 2,583
million at 30 September 2024 from
DKK 2,787 million at 30 September
2023. The reduced working capital
tie-up was primarily attributable
to dedicated efforts to reduce
inventories at GPV’s factories. ROIC
excluding goodwill fell from 9.3% at
30 June 2024 to 9.1% at 30 Septem-
ber 2024, primarily due to the lower
earnings.
Business review
The final integration activities
following the combination of GPV
and Enics were completed at the end
of 2023, where an ordinary strategic
review was carried out. The updated
strategy for the combined GPV for
the period to 2028 continues to
indicate a solid potential, and GPV
has started executing the updated
plans.
As part of the updated strategy,
GPV launched a major project in Q2
2024 to implement a common ERP
system across the company. The full
project is assessed to represent an
investment of about DKK 230 million
over time and to negatively impact
EBITDA for 2024 by approx. DKK 20
GPV
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Revenue 2,221 2,547 6,820 7,920 10,450
EBITDA 186 197 486 565 743
EBIT 108 120 249 336 432
CF from operations 85 111 264 79 351
Working capital 2,583 2,787 2,583 2,787 2,620
ROIC excluding goodwill 9.1% 11.3% 9.1% 11.3% 10.9%
ROIC including goodwill 8.4% 10.4% 8.4% 10.4% 10.2%
GPV
Challenging market
environment persists
As expected, GPV reported revenue and EBITDA down on the year before. Overall,
the industry is marked by soft activity. Full-year revenue and EBITDA guidance is
narrowed towards the lower part of the range.
Our businesses > GPV
Financials ReportContents
Interim report for Q3 202422
million. The project is expected to be
ready for initial pilot implementation
during 2025.
GPV is currently seeing soft demand
from a number of customers,
but – committed to being able to
meet customer requirements for
high quality standards, reliability of
supply and flexibility – the company
continued implementing already
launched investments in order to
ensure adequate capacity for when
the market picks up again, which
the company expects it will. These
investments primarily include the
final phase of the expansion in
Thailand – scaling up the production
of electronics – which is expected
to be finalised and operational in Q4
2024. This project involves a total
investment in 2024 of around DKK
70 million.
In addition, the electronics produc-
tion in Mexico is currently being
expanded, with the initial phase
encompassing a doubling of the
production area for scheduled
completion at the end of the year
and commissioning at the beginning
of 2025. GPV also completed an
extension of its Slovakian production
facilities in Q2 2024.
The work to optimise the global
production platform has led to the
closing of the factory in Malaysia and
divestment of a minor production site
in Austria. The anticipated benefits of
having a lower cost base, increased
efficiency and higher capacity
utilisation indicate a relatively short
payback period, and the closure is an
inherent part of harvesting synergies
from the combination with Enics.
To further optimise the production
platform, GPV has initiated a consol-
idation of the remaining cable manu-
facturing activities, which is expected
to be finalised during 2025.
Outlook
In late 2023, GPV began to see softer
demand from a number of customers
scaling back or postponing their
orders to adjust their inventories in
step with the improvement of the
general supply situation. From the
beginning of 2024, expectations
were therefore for a lower level
of activity in the first half of 2024
compared with the past year, which
proved to be the case.
From the beginning of the year, busi-
ness activity was expected to pick up
in the second half of 2024, despite
uncertainty as to the actual strength
of demand. After Q2 2024, the gen-
eral expectations in the industry as
a whole, however, indicated that the
level of activity was unlikely to grow
at any significant scale in the second
half of 2024. Any significant increase
in demand is hence not expected to
materialise before the second half of
2025, and it remains uncertain when
and how quickly this will happen.
GPV has adapted to the current
market conditions by taking strong
measures to protect earnings,
including a substatial reduction in
its number of employees. The effect
of some of these measures will be
reflected in the financial figures with
a certain delay.
The outlook for the second half of
2024 was revised after Q2 2024 and
GPV narrows its full-year revenue
guidance to the DKK 8.9-9.2 billion
range from previously DKK 8.9-9.3
billion and its EBITDA guidance
range to DKK 610-640 million from
previously DKK 610-660 million.
Our businesses > GPV
Financials ReportContents
Interim report for Q3 202423
HydraSpecma is a specialised trading and engineering company
with core competencies in trading, production and know-how
in hydraulics components, electrification, turnkey solutions and
systems, central lubrication, manifolds, pipes, hoses and fittings
as well as cooling systems, filtration and lubrication systems,
pitch systems and connectors within the renewables industry.
HydraSpecma serves industry sectors such as Commercial
Vehicles, Wind Turbines, Construction Equipment, Marine,
Material Handling, Agriculture, Forestry and many others.
HydraSpecma
Interim report for Q3 202424Our businesses > HydraSpecma
Financials ReportContents
Revenue (DKKm)
At HydraSpecma, we focus on balancing growth and
operational efficiency. We continue to drive sustainable value
for our stakeholders while navigating an evolving market to
secure long-term value creation, growth and stability.
Morten Kjær, CEO of HydraSpecma
Market
Hydraulic solutions are the basic
tools of the Power & Motion business
area. Transmission of extreme
power is essential in a broad range
of technical applications, such as
contractors’ equipment and cranes,
in agriculture and forestry and in
other areas where heavy machinery
can generate power and motion. In
mobile hydraulic solutions, power
is typically generated by diesel
engines, and their systems use a
number of different components,
such as hoses, fittings and valves.
Increasingly, focus is on electrifi-
cation of power generation in an
attempt to limit the use of fossil
fuels and to reduce climate impact.
HydraSpecma supplies entire
electric solutions as well as hybrid
solutions in which certain parts of a
system are electrified.
Cooling solutions are basically based
on liquid that is moved through cool-
ing matrices, thereby reducing the
temperature in the system. Cooling
systems contribute to more efficient
operations, which reduces energy
consumption.
HydraSpecma supplies complete
customised solutions and systems
as well as components for the entire
“Power & Motion” segment. The
company serves a broad range of
industries, from the wind turbine
sector to the vehicle and shipping
industries. HydraSpecma is a
supplier to large OEM customers
as well as to the aftermarket, and
its customer-facing organisational
structure consists of three divisions:
the Renewables Division, the Global
OEM Division and Nordic OEM/IAM
Division (the Nordic OEM and indus-
trial aftermarket). HydraSpecma is
present in international markets with
a broad product range in order to
be close to its customers and able
to supply the needed products and
services fast and efficiently.
Geography
HydraSpecma is headquartered
in Skjern, Denmark, and has pro-
duction units in Denmark, Sweden,
Finland, Norway, Poland, the UK, the
Netherlands, China, India, the USA
and Brazil.
Ownership – past and present
Hydra-Grene A/S was founded as
an independent business in 1974
and has been a wholly-owned part
of the Schouw & Co. Group since
1988. Specma AB was founded
in 1918 and has formed part of
HydraSpecma since 2016.
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1,977
2,315
2,536
2,972
2019 2020 2021 2022 2023
Interim report for Q3 202425Our businesses > HydraSpecma
Financials ReportContents
Financial review
In the third quarter of 2024,
HydraSpecma generated revenue
of DKK 678 million, compared to
DKK 683 million in the same quarter
of 2023. Market conditions remain
challenging for customers within the
Commercial Vehicle segment and in
the Nordic OEM/IAM Division, with
a decline in activity compared to last
year, particularly in Finland, Sweden
and Central Europe. However,
increased activity levels in Renewa-
bles, Marine and Defense, coupled
with market share gains within
Commercial Vehicles, have nearly
offset the overall market downturn.
Total revenue for the year to date
was DKK 2,241 million, in line with
the previous year.
EBITDA for Q3 2024 was DKK 79
million, on a par with the same
period of last year and in line with
expectations. Year to date EBITDA
amounted to DKK 253 million, a
slight increase compared to the
previous year, when EBITDA was
negatively affected by a purchase
price allocation effect on inventory
of DKK 15 million related to the Ymer
acquisition.
Working capital fell by DKK 23
million, from DKK 945 million at 30
September 2023 to DKK 922 million
at 30 September 2024, primarily due
to lower inventory levels. Return on
invested capital (ROIC) excluding
goodwill was 12.8% at 30 Septem-
ber 2024, a slight decrease from
13.0% at 30 June 2024.
Business review
At 1 February 2023, HydraSpecma
acquired Swedish industrial
company Ymer Technology’s wind
turbine business. Following the
acquisition, an integration process
was initiated to merge the acquired
activities with HydraSpecma’s
existing wind turbine operations into
the newly established Renewables
Division. This included consoli-
dating the acquired companies
in India, China and Denmark with
HydraSpecma’s existing entities in
these regions to optimise operations
and enhance efficiency. Like the rest
of the industry, HydraSpecma is
facing increased competition from
Asia and has therefore launched
several development and operations
initiatives to remain an attractive
partner for Western customers.
HydraSpecma
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Revenue 678 683 2,241 2,243 2,972
EBITDA 79 80 253 249 323
EBIT 45 48 152 155 200
CF from operations 111 11 192 116 191
Working capital 922 945 922 945 934
ROIC excluding goodwill 12.8% 15.0% 12.8% 15.0% 13.4%
ROIC including goodwill 11.0% 13.0% 11.0% 13.0% 11.5%
HydraSpecma
Strong activity in an
uncertain market
HydraSpecma reported activity levels on a par with last year in a generally
subdued market. Full-year revenue guidance is maintained, while EBITDA
guidance is increased.
Our businesses > HydraSpecma
Financials ReportContents
Interim report for Q3 202426
The integration of the companies
within the Renewables Division
is progressing satisfactorily. In
Denmark, the process has been
completed, and activities in India
have been consolidated. In Q2 2024,
HydraSpecma inaugurated a 2,000
m² extension of the existing produc-
tion facilities in Oragadam, outside
Chennai, India. Furthermore, the
two Chinese units in the Tianjin area
have been brought under a unified
management and IT platform.
At the end of Q2 2024, Hydra-
Specma acquired Agder Slange-
service AS in Kristiansand, Norway,
a minor retail and mobile service
company with a strong position
in the local market. Historically,
the company has primarily sold
HydraSpecma products, and the
acquisition is part of HydraSpec-
ma’s market strategy for Norway.
The integration is underway and
is expected to be completed by
year-end.
HydraSpecma completed a new
production facility in Poland at the
end of 2023, with all activities now
transferred from the previous site,
which is now being considered
either sold or leased. The new fac-
tory, covering 16,000 m², is located
in Stargard adjacent to the former
facility. HydraSpecma has installed
solar panels and heat pumps at
the new site, which is expected to
make the production carbon-neutral
on an annual basis. Additionally,
HydraSpecma has applied for
permission to install solar panels
at its production facility in India to
achieve carbon-neutral production
there as well.
HydraSpecma has formalised its
R&D department within the Renewa-
bles Division to enhance partner-
ships with customers by developing
customer-specific systems, improv-
ing existing solutions and creating
proprietary solutions that will be pat-
ented and incorporated into future
customer offerings. These efforts
are supported by expanding pro-
duction capacity in regions where
customers expect products to be
delivered, ensuring local presence,
flexibility and competitiveness.
Resources within the Global OEM
Division have also been scaled up
to meet the significant increase
in demand for new products and
solutions from both existing and new
customers. HydraSpecma is also
expanding competencies within its
Centre of Excellence, focusing on
electrification and software devel-
opment to provide more sustainable
solutions for customers.
Outlook
HydraSpecma continues to
experience significant uncertainty
among customers in the Global
OEM Division and Nordic OEM/
IAM Division regarding demand
trends. Market expectations are
mixed, but overall, 2024 is expected
to be a transition year with subdued
demand, followed by organic growth
expected from mid-2025. Despite
the tempered expectations for the
renewables market in general in
2024, HydraSpecma anticipates
maintaining a high level of activity
for the remainder of the year, as
it is well-positioned on product
platforms that are performing well
among major Western wind turbine
manufacturers.
HydraSpecma expects overall
activity in 2024 to remain at the
same level as in 2023, which was the
company’s best year to date. Activity
within the Global OEM Division has
stabilised but at a more subdued
level than the record-high level of
2023, particularly as regards cus-
tomers within Commercial Vehicles,
where large order backlogs have
been fulfilled and activity levels have
therefore normalised. This reduction
is not expected to be offset in the
short term by other activity for
existing and new customers in the
segment or by increasing activity in
the Forestry, Marine and Defense
segments.
HydraSpecma expects a slight
decline in activity levels within the
Nordic OEM/IAM Division, as the
market remains challenging and
characterised by significant uncer-
tainty, particularly in Sweden and
Finland.
Against this background, Hydra-
Specma maintains its revenue
guidance for 2024 in the DKK 2.9-
3.1 billion range, while increasing
its EBITDA guidance range to DKK
320-340 million from previously DKK
300-330 million.
Our businesses > HydraSpecma
Financials ReportContents
Interim report for Q3 202427
Borg Automotive is Europe’s largest independent automotive
remanufacturing business. The company’s principal business
activity is to remanufacture defective parts and sell them in the
B2B market under a circular business model. Borg Automotive
offers a full product range by also supplying new products to
complement remanufactured items. Borg Automotive has a
strong market position, and remanufacturing is a business area
offering a wide range of environmental and resource benefits.
Borg Automotive
Interim report for Q3 202428Our businesses > Borg Automotive
Financials ReportContents
Revenue (DKKm)
Borg Automotive is built on a
circular business model with
resource-saving solutions that
enable us to extend a car’s lifespan.
Kim Kruse Andersen, CEO of Borg Automotive
Market
With about 250 million cars on the
European roads and an average age
per vehicle of more than 11 years,
there is a great need to ensure spare
parts for a growing fleet. The pro-
portion of electric and hybrid cars
on the roads is growing, but these
also need spare parts. About half
of the items in Borg Automotive’s
product range can be used whether
a vehicle has an electric motor or a
combustion engine. The transition
is in progress, both in the industry at
large and at Borg Automotive, where
the product assortment is expanded
on a regular basis to accommodate
new needs.
Borg Automotive offers a broad
product range, of which the largest
share is products derived through
remanufacturing (Reman) of existing
used products (cores). Compared
with production of a new product, the
remanufacturing process requires
fewer resources and materials, and
accordingly has less of an environ-
mental impact. The company’s busi-
ness model applies a return system
combined with remanufacturing,
which is a good example of a circular
business model.
Borg Automotive covers most of
the European car fleet through its
broad assortment of remanufac-
tured automotive spare parts, which
includes starters, alternators, brake
callipers, air-condition compressors,
EGR valves, steering racks, steering
pumps and turbochargers.
The company supplements its
assortment of remanufactured spare
parts with a large assortment of new
parts (Newman), including many
wearing parts that are not suitable
for remanufacturing. This assortment
of goods for resale, which was added
through the acquisition of SBS Auto-
motive, includes mechanical and
hydraulic brake spare parts, steering
components and wheel bearing
sets, suspension and transmission
components, clutch components
and electrical components.
Geography
Headquartered in Silkeborg, Den-
mark. Production or large distribu-
tion facilities in Poland, the UK, Spain
and Germany.
Ownership – past and present
Borg Automotive was founded in
1975 and has been a part of the
Schouw & Co. Group since 2017.
Growth through acquisitions is part
of the strategy.
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2019 2020 2021 2022 2023
Interim report for Q3 202429Our businesses > Borg Automotive
Financials ReportContents
Financial review
In Q3 2024, Borg Automotive
experienced a slowdown in both
Reman and Newman demand. This,
combined with increased production
costs in Reman due to a substantial
increase in Polish minimum wages,
affected the company’s Q3 perfor-
mance. Despite this, revenue in the
quarter increased to DKK 492 million
compared to DKK 476 million in the
same period of last year, correspond-
ing to an increase of 4%. For the first
nine months of 2024, total revenue
was DKK 1,541 million, a year-on-
year increase of 7%.
The result in Q3 2024 was an EBITDA
of DKK 36 million compared to DKK
45 million in Q3 2023, a year-on-year
decrease of 21%. For the first nine
months of 2024, EBITDA totalled
DKK 139 million compared to DKK
118 million in the same period of
last year, but it should be noted that
the H1 2024 result was positively
affected to the tune of DKK 12 million
by developments in core market
prices.
Working capital at 30 September
2024 amounted to DKK 750 million,
a year-on-year increase of DKK
96 million that was mainly driven
by higher trade receivables. ROIC
excluding goodwill decreased from
12.5% at 30 June 2024 to 11.3% at
30 September 2024.
Business review
With the acquisition of SBS Automo-
tive in July 2021, Borg Automotive
acquired a trading company dealing
in new automotive spare parts. These
Newman products complement the
company’s traditional Reman opera-
tions, but Reman products still make
up the majority of Borg Automotive’s
business and bring in most of the
revenue. The company sells the
remanufactured products under four
different brands: the international
brand Lucas and the company’s
three private label brands: Elstock,
DRI and TMI. The Newman products
are sold under the NK or Eurobrakes
brands.
Borg Automotive sells different types
of automotive spare parts aligned
with different market conditions.
Thus, the market for brake callipers
and brake discs, in particular, is
currently perceived to be under
strong price competition, and
Borg Automotive
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Revenue 492 476 1,541 1,442 1,876
EBITDA 36 45 139 118 153
EBIT 18 27 83 63 79
CF from operations 11 83 -15 41 76
Working capital 750 653 750 653 655
ROIC excluding goodwill 11.3% 11.2% 11.3% 11.2% 10.4%
ROIC including goodwill 7.9% 7.7% 7.9% 7.7% 7.1%
Borg Automotive
Revenue growth in a
challenging market
Strengthened use of combined Reman and Newman offerings to withstand
increasing pressure from competitors and the market. Full-year revenue guidance
is maintained, while EBITDA guidance is narrowed towards the lower end of the
range.
Our businesses > Borg Automotive
Financials ReportContents
Interim report for Q3 202430
Borg Automotive has launched a
number of measures to improve the
company’s market position. Borg
Automotive offers a market concept
where synergies from Newman and
Reman can ensure a competitive
offer to withstand increasing market
competition.
Hence, securing a strong market
position by offering the market both
Reman units and Newman products
remains Borg Automotive’s strategic
ambition. Borg Automotive’s target
is to cover 90% of all passenger cars
in the market, and a total of 125 new
product references were added to
the product programme in Q3 2024
as part of the ongoing development
of the overall market proposition.
Based on an assessment of the
environmental impact of refab-
ricated automotive spare parts,
Borg Automotive has published
comparative life cycle assessments
of its eight product groups. These life
cycle assessments were prepared by
Linköping University in accordance
with ISO 14040 and ISO 14044,
and the results clearly indicate a
reduced environmental impact from
the use of refabricated auto spare
parts compared with new parts. For
example, remanufacturing of auto
spare parts typically emits 60% less
CO equivalents than the production
of new parts and typically consumes
40% less energy.
Borg Automotive has entered an
agreement to acquire a subcon-
tractor located in Tunisia. This will
strengthen the company’s overall
position as it provides access to
production capacity in a country with
a very competitive cost base. The
transaction is expected to be final-
ised during Q4 2024. The purchase
price is expected to be marginal,
so the main impact on financials is
expected to be an increased tie-up in
net working capital.
The subcontractor has been pro-
ducing for Borg Automotive on an
exclusive basis over the past two
years. The subcontractor is a well-
run starter and alternator facility with
about 165 employees on site and
more than 40 years of experience in
the industry.
Outlook
During Q3 2024, Borg Automotive
experienced a slowdown in demand
for remanufactured products in
the European aftermarket. Sales of
Newman products are on an upward
trend, but the market is very compet-
itive, and to compensate for the loss
of the significant Russian market,
continued intensive efforts are
needed to strengthen the position in
other European markets.
The current level of activity is
expected to be maintained in the
coming months, but results are
impacted by fierce competition
on traded products and increased
production costs in Europe. Borg
Automotive continues to guide for
2024 revenue in the range of DKK
1.9-2.1 billion, while its EBITDA
guidance range is narrowed to DKK
170-190 million from previously DKK
170-200 million.
Our businesses > Borg Automotive
Financials ReportContents
Interim report for Q3 202431
Fibertex Personal Care is one of the world’s largest
manufacturers of spunbond/spunmelt nonwovens and printed
nonwovens for the hygiene industry. The company’s nonwovens
fabrics are key components in absorbent hygiene products
such as baby diapers, feminine hygiene and incontinence care
products. Products are offered as customised solutions, subject
to tough requirements in terms of safety, health and comfort.
Fibertex Personal Care
Interim report for Q3 202432Our businesses > Fibertex Personal Care
Financials ReportContents
Revenue (DKKm)
Fibertex Personal Care is a strong brand in the
industry and known for developing material
breakthroughs, enabling brand owners in the hygiene
industry to produce more sustainable solutions.
Mikael Staal Axelsen, CEO of Fibertex Personal Care
Market
Diapers, sanitary towels and
incontinence products are typical
necessities. In other words, demand
for the products is relatively stable,
and they are used all over the world.
The general economic developments
and gains in standards of living are
the factors generating growth and
expanding the market. Growth has
historically been strongest in Asia,
where the adoption of dispos-
able diapers manufactured from
nonwoven materials is significantly
lower than in Europe and the USA.
Asia is also experiencing the biggest
improvements in income and
standards of living, and a long-term
increase in the use of nonwovens is
expected in the region.
Nonwovens is a non-woven material
made from plastics. It has a range of
applications and is characterised by
being light and soft, and it can be man-
ufactured using fewer resources and
at lower costs than other materials.
Being among the world’s ten largest
manufacturers of nonwovens for the
hygiene industry, Fibertex Personal
Care has a global market share of
over 5%. The company operates
manufacturing facilities in Europe
and Asia, as well as specialised print
production facilities in Europe and
the USA. Fibertex Personal Care is
a leader in innovation, service and
quality with a great focus on sustain-
ability, including the use of certified,
recycled and bio-based materials,
which is expected to increase.
Customers use the company’s
nonwovens fabrics to manufacture
hygiene products such as baby
diapers, feminine hygiene and
incontinence care products, which
are then distributed to consumers
via supermarkets, public institutions
and web shops. Customers are both
medium-sized and multinational
brand names.
Geography
Head office in Aalborg, Denmark.
Nonwovens manufacturing facilities
in Denmark and Malaysia and
printing facilities in Germany and
the USA.
Ownership – past and present
Fibertex was founded in 1968 and
acquired by Schouw & Co. in 2002.
The Personal Care activities have
been a part of Fibertex since 1998
and were hived off as an independent
portfolio business directly under
Schouw & Co. in 2011.
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2,118
2,249
2,454
1,891
2019 2020 2021 2022 2023
Interim report for Q3 202433Our businesses > Fibertex Personal Care
Financials ReportContents
Fibertex Personal Care
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Revenue 474 475 1,427 1,444 1,891
EBITDA 40 81 134 210 262
EBIT 10 50 44 117 137
CF from operations 45 77 133 201 234
Working capital 315 356 315 356 349
ROIC excluding goodwill 4.4% 11.0% 4.4% 11.0% 9.1%
ROIC including goodwill 4.2% 10.4% 4.2% 10.4% 8.5%
Financial review
Fibertex Personal Care generated
revenue of DKK 474 million in the
third quarter of 2024, in line with the
Q3 2023 performance. The stable
revenue in the third quarter of 2024
was derived through a combination
of lower sales prices and increased
volume sales compared to the third
quarter of 2023. Year to date revenue
amounted to DKK 1,427 million, a
minor decrease compared with 2023.
Despite the increased sales volumes,
Fibertex Personal Care saw EBITDA
drop to DKK 40 million in the third
quarter of 2024 from DKK 81 million
in Q3 2023. The decline in earnings
was driven by lower margins in the
Asian market as a result of changed
market dynamics and strong
competition in the region. Further,
the result includes an expense of
around DKK 15 million in the form of
a provision for one-off costs related
to operational changes in Malaysia,
which will include a substantial
reduction in the number of employ-
ees in Malaysia. Total EBITDA for the
first nine months of 2024 was DKK
134 million, compared with DKK 210
million for the same period in 2023.
Fibertex Personal Care reduced its
working capital from DKK 356 million
at 30 September 2023 to DKK 315
million at 30 September 2024. The
lower working capital is primarily due
to changes in trade receivables and
trade payables. Due to the reduced
earnings, the return on invested
capital (ROIC) excluding goodwill fell
to 4.4% at 30 September 2024 from
7.1% at 30 June 2024.
Business review
Fibertex Personal Care is currently
seeing weakening demand from
customers in Asia. Large-scale
production capacity expansion in
the Asian market in recent years,
mainly in China, coupled with a
lower-than-historic birth rate has
resulted in significant overcapacity
of nonwovens and subsequently
unsustainable selling prices. The
reduced demand in China for non-
wovens and finished products has
led Chinese producers to increase
exports to other Asian regions, in
particular other markets with low
brand loyalty, which is affecting
market dynamics across the entire
region.
Fibertex Personal Care
Aligning capacity with
current needs
Fibertex Personal Care reported revenue on a par with 2023, whereas EBITDA fell
due to fierce competition in Asia and one-off costs related to capacity reductions
in Malaysia. Full-year revenue guidance is maintained, while EBITDA guidance is
lowered.
Our businesses > Fibertex Personal Care
Financials ReportContents
Interim report for Q3 202434
To embrace these market challenges,
Fibertex Personal Care has initiated
a temporary reduction of the produc-
tion capacity in Malaysia to ensure
sustainable margins.
The temporary production capacity
reduction is being implemented
with a focus on ensuring the best
possible operational efficiency and
strengthening earnings going for-
ward, while maintaining the ability to
scale up capacity again as and when
needed. At this state, one-off costs
related to the changes in Malaysia
are expected to constitute around
DKK 15 million in 2024, which are
included in the EBITDA result for the
third quarter of 2024.
Committed to being able to meet
customer requirements for innova-
tion, high quality standards, reliability
of supply and flexibility, Fibertex Per-
sonal Care is striving to strengthen
capabilities by having an agile mind-
set. The focus is to strengthen the
ability to offer value-added products
and services well suited to compete
in these extremely price sensitive
markets.
Outlook
The Asian hygiene market has
experienced high growth rates
over the past decades, primarily
centred around China. Before the
coronavirus pandemic, the Chinese
market accounted for around 60%
of the total hygiene market in Asia.
However, growth in China has slowed
since then, and for some segments
like baby diapers, the market has
declined substantially. While the
birth rate in China has now stabi-
lised, brand and private label owners
are still struggling with competition
on their sales of baby diapers in Asia
due to overcapacity. How long this
situation is going to prevail remains
to be seen.
On the other hand, the rest of Asia
is expected to show fairly strong
growth rates in the demand for baby
diapers over the next five years,
primarily driven by strong demand
in countries like Indonesia, Vietnam
and India. Overall, the combination
of rising household incomes and
relatively high birth rates, particularly
in Southeast Asia, contributes to this
positive outlook.
The supply and demand situation
in the European hygiene market
remains positive, and the US market
shows solid growth rates in the adult
incontinence care segment.
Fibertex Personal Care continues
to guide for 2024 revenue in the
DKK 1.7-1.9 billion range. However,
as a consequence of the one-off
expenses in connection with the
temporary capacity reduction in
Malaysia, earnings guidance for
2024 are reduced to EBITDA in the
range of DKK 160-180 million from
previously DKK 170-200 million.
Revenue and EBITDA may still be
affected by changes in raw material
prices and exchange rates.
Our businesses > Fibertex Personal Care
Financials ReportContents
Interim report for Q3 202435
Fibertex Nonwovens is among the world’s leading
manufacturers of specialised nonwovens. Nonwovens are
fibre sheets produced on high-tech processing equipment
with various purpose-specific post-processings. The
processed materials have a broad range of different
applications, including in cars, in the construction industry
and for filtration solutions. In addition, Fibertex Nonwovens
produces textiles for special-purpose disposable wipes for
hygiene, cleaning and other purposes.
Fibertex Nonwovens
Interim report for Q3 202436Our businesses > Fibertex Nonwovens
Financials ReportContents
1,705
1,791
1,814
2,060
2,158
2019 2020 2021 2022 2023
Revenue (DKKm)
Market
In cars, nonwovens are used to reduce
weight and thereby lower carbon emis-
sions, but nonwovens are also used as
an acoustic fabric, as it absorbs sound
and thereby increases comfort. In the
construction sector, nonwoven materi-
als are used to prolong the life of roads
and bridges, and the material can be
used to construct energy-efficient
liquid and air filter solutions in cars, for
industrial filtration and in ventilation
systems, for example.
In the disposable wipes segment,
nonwovens form part of products for
industrial cleaning, while the focus in
the healthcare sector is on disinfection
solutions, and here Fibertex Nonwo-
vens supplies a number of products,
including special-purpose disinfectant
wipes.
Customers demand sustainable solu-
tions, and thanks to new technology,
Fibertex Nonwovens is able to produce
wipes from non-synthetic fibre, replac-
ing the use of synthetic fibre. Recently,
Fibertex Nonwovens launched a
range of products based on organic
cotton for use in, for example, feminine
hygiene and skin care products.
Fibertex Nonwovens has increasingly
focused on circular solutions, and the
company aims to increase the propor-
tion of recycled plastics in production,
which means using much fewer
resources and lowering greenhouse
gas emissions substantially.
Geography
Head office in Aalborg, Denmark. Pro-
duction facilities in Denmark, France,
the Czech Republic, Türkiye, the USA,
South Africa and Brazil.
Ownership – past and present
Fibertex was founded in 1968 and
acquired by Schouw & Co. in 2002.
The company previously included the
Personal Care activities, which were
hived off as an independent portfolio
company in 2011.
Nonwovens is a versatile material that
Fibertex Nonwovens uses to create
value-adding applications through
innovation and product development.
Jørgen Bech Madsen, CEO of Fibertex Nonwovens
Interim report for Q3 202437Our businesses > Fibertex Nonwovens
Financials ReportContents
Financial review
Fibertex Nonwovens reported Q3
2024 revenue of DKK 563 million, an
8% increase from DKK 523 million in
Q3 2023. The revenue improvement
was mainly driven by an increase
in volumes sold which more than
offset the effects of reduced selling
prices and adverse foreign exchange
developments. The increase in sales
was partly driven by higher sales of
wipes and similar products in the
USA, enabled by the new production
line installed at the company’s site
in Greenville, South Carolina. The
improvement was further under-
pinned by increased sales to the
European construction industry,
whereas sales to the auto industries
in the USA and Europe dropped
compared to the level reported in Q3
2023. Overall, 2024 revenue year to
date was up by 5% year-on-year to
DKK 1,743 million.
Despite the revenue growth, EBITDA
fell to DKK 42 million in Q3 2024
from DKK 49 million in Q3 2023, a
14% reduction. The US operations
remained a drag on earnings due to
a still outstanding full phase-in of the
new production capacity, coupled
with a persistent imbalance between
costs and selling prices. Against this
background, a cost-out plan was
executed at the end of the quarter.
Incedently, the company’s Greenville
site was further impacted as Hurri-
cane Helene swept through South
Carolina. The site was without power
for several days in September and
October, leading to an operational
loss. EBITDA for 2024 year to date
was up by 23% year-on-year to DKK
159 million.
Working capital was reduced to DKK
551 million at 30 September 2024,
down DKK 30 million on 30 Septem-
ber 2023. The reduction was driven in
particular by a significant reduction
in inventories of raw materials, com-
bined with the fact that the company
managed to reduce trade receivables
despite the higher revenue.
ROIC excluding goodwill fell from
5.3% at 30 June 2024 to 4.9% at 30
September 2024 due to the drop
in earnings. The lower return was
naturally impacted by the massive
investments made in new technology
and as yet only partially commis-
sioned production capacity.
Fibertex Nonwovens
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Revenue 563 523 1,743 1,655 2,158
EBITDA 42 49 159 130 169
EBIT 15 24 77 57 72
CF from operations 31 -3 57 46 83
Working capital 551 581 551 581 550
ROIC excluding goodwill 4.9% 2.3% 4.9% 2.3% 3.8%
ROIC including goodwill 4.6% 2.2% 4.6% 2.2% 3.6%
Fibertex Nonwovens
Revenue growth outlook
softened
Fibertex Nonwovens reported a revenue improvement driven mainly by an
increase in volume sales, but US operations remained a drag on earnings. Full-
year revenue and EBITDA guidance is lowered.
Our businesses > Fibertex Nonwovens
Financials ReportContents
Interim report for Q3 202438
Business review
Fibertex Nonwovens has invested
to expand its production capacity
over the past few years. This enable
Fibertex Nonwovens to capitalise on
the business opportunities unfolding
in the wake of the coronavirus
pandemic, which, however, were
followed by a prolonged period
of extremely challenging market
conditions.
By continually investing in innovation
and sustainable solutions, Fibertex
Nonwovens has made its factories
competitive, and the company
continues to see a strong growth
potential, especially for products
for more specialised applications.
In order to accommodate future
demand, Fibertex Nonwovens
launched an investment programme
in 2021, which is intended to provide
a platform for strong future growth
and significantly improved earnings
in the years ahead. The programme
is mainly for two production lines
applying the spunlacing technology,
where non-woven textile fibres are
entangled using high-speed jets of
water.
The first of the two production lines
has been installed at the company’s
site in Greenville, South Carolina,
and was put into commercial oper-
ation in early 2024. The company is
seeing considerable market interest
in the products which the line will
manufacture. The second line will be
installed in the Czech Republic and
is expected to become operational in
early 2026.
Developing new products and busi-
ness concepts is essential to secur-
ing profitable and sustainable devel-
opments for Fibertex Nonwovens.
The company introduces production
and capacity-enhancing measures at
its factory sites on an ongoing basis
as part of its high-priority efforts to
build a more competitive business.
Fibertex Nonwovens has adopted a
strategy under which development
efforts are strategically managed
from Denmark but are driven by
the company’s local R&D centres.
Development efforts are for the most
part conducted in close coopera-
tion with customers, but strategic
development projects also involve
suppliers of new technology as well
as universities.
Outlook
For some time, Fibertex Nonwovens
has been in the process of commis-
sioning new production capacity and
technology, which has put a strain on
performance. However, the current
situation does not change the com-
pany’s expectations of sound growth
in most market segments over the
coming years. Fibertex Nonwovens
has compelling technology and a
promising pipeline and is therefore
well positioned in the international
competition. The short-term goal
for 2024 was to build volume while
securing sustainable earnings power
so that the company will be in a
position to implement its plans for
the coming years and capitalise on
the full potential of the capacity-ex-
panding investments made.
The market has been impacted by
moderate demand since the begin-
ning of the year, in part due to the
uncertainty prevailing in terms of the
global economy and the geopolitical
tensions. Further, in recent months,
the US and European auto industries
have been challenged by Chinese
manufacturers, with especially
exports of electric cars to the Euro-
pean market putting pressure on
European manufactures.
Fibertex Nonwovens still expects
to increase sales relative to 2023,
supported in part by the ramped-up
production capacity in the USA,
which enables the company to better
accommodate North American
customers’ demand for materials for
wipes. In addition, sales of materials
are expected to pick up for the
European main segments, including
materials for filtration solutions and
MedTech products.
While revenue grew in Q3, the
full-year expectations are still some
way from being met, which is due
in part to the lower selling prices.
Accordingly, Fibertex Nonwovens is
lowering its 2024 revenue guidance
to DKK 2.2-2.4 billion from previously
DKK 2.3-2.5 billion. At the same
time, its EBITDA guidance range
is reduced to DKK 200-220 million
from previously DKK 210-240 million.
Our businesses > Fibertex Nonwovens
Financials ReportContents
Interim report for Q3 202439
Amounts in DKK million
Statements of income and comprehensive income
Note Income statement
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
1 Revenue 9,543 10,515 26,119 28,359 37,210
2 Operating expenses -8,717 -9,613 -23,913 -26,283 -34,386
Other operating income 11 7 31 17 39
Other operating expenses -4 0 -15 -7 -14
EBITDA 834 909 2,222 2,086 2,849
Depreciation and impairment -268 -275 -827 -802 -1,121
EBIT 566 634 1,395 1,284 1,727
Profit after tax in associates 23 2 -2 -7 -36
Profit after tax in joint ventures 5 -2 36 44 45
Financial income 79 91 233 236 157
Financial expenses -187 -169 -599 -524 -526
Profit before tax 487 555 1,064 1,032 1,367
Tax on profit for the period -129 -134 -304 -276 -376
Profit for the period 357 421 760 756 991
Shareholders of Schouw & Co. 340 400 730 716 935
Non-controlling interests 17 22 30 40 56
Profit for the year 357 421 760 756 991
6 Earnings per share (DKK) 14.65 16.99 31.31 30.47 39.78
6 Diluted earnings per share (DKK) 14.62 16.99 31.27 30.44 39.76
Note Statement of comprehensive income
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Items that cannot be reclassified to the income statement:
Actuarial gains on defined benefit pension liabilities 0 0 0 0 -28
Tax on other comprehensive income 0 0 0 0 5
Total items that cannot be reclassified to the income statement 0 0 0 0 -23
Items that can be reclassified to the income statement:
Foreign exchange adjustments of foreign subsidiaries -59 124 -13 -155 -228
Value adjustment of hedging instruments for the year -26 16 -12 25 34
Hedging instruments transferred to operating expenses -7 -3 -21 -13 -38
Hedging instruments transferred to financials 5 -16 6 -22 -5
Hyperinflation restatements 0 16 17 -3 18
Other comprehensive income from associates and JVs 0 0 0 0 -37
Other adjustments to other comprehensive income -4 1 0 1 3
Tax on other comprehensive income 8 1 8 4 1
Total items that can be reclassified to the income statement -83 139 -15 -163 -254
Other comprehensive income after tax -83 139 -15 -163 -277
Profit for the period 357 421 760 756 991
Total recognised comprehensive income 274 561 744 594 713
Attributable to:
Shareholders of Schouw & Co. 265 524 716 555 679
Non-controlling interests 9 36 29 39 35
Total recognised comprehensive income 274 561 744 594 713
Interim report
Financials ReportContents
Interim report for Q3 202441
Amounts in DKK million
Cash flow statement
Note
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
EBITDA 834 909 2,222 2,086 2,849
Adjustment for non-cash operating items etc.:
Changes in working capital 469 784 122 219 -377
Provisions -20 1 0 21 -44
Other non-cash operating items, net 36 7 46 20 191
Cash flows from operations before interest and tax 1,318 1,701 2,391 2,346 2,619
Net interest paid -90 -112 -333 -266 -389
Income tax paid -69 -99 -392 -332 -452
Cash flows from operating activities 1,158 1,490 1,665 1,748 1,777
Purchase of intangible assets -7 -14 -26 -37 -48
Disposal of intangible assets 0 0 1 0 0
Purchase of property, plant and equipment -178 -141 -522 -646 -819
Sale of property, plant and equipment 7 1 32 13 8
4 Acquisitions -2 0 -2 -378 -684
Acquisition of investments in associates 0 0 0 -1 -1
Dividends received from associates and JVs 6 10 11 30 29
Loans to associates 0 0 0 10 -6
Loans to customers (repayment of loans) 7 2 20 3 0
Additions/disposals of other financial assets -3 -15 -1 -3 0
Cash flows from investing activities -170 -157 -488 -1,009 -1,521
Note
Q3
2024
Q3
2023
YTD
2024
YTD
2023
FY
2023
Loan financing:
Repayment of other non-current liabilities -106 -75 -1,490 -270 -1,191
Proceeds from non-current liabilities incurred 368 1 1,214 2 1,677
Increase/repayment of bank overdrafts -1,156 -1,031 -108 -32 -494
Cash flows from debt financing -894 -1,106 -383 -300 -9
Shareholders:
Dividends paid -4 -5 -395 -360 -377
Purchase of treasury shares -61 0 -228 -19 -75
Sale of treasury shares 0 0 46 73 94
Cash flows from financing activities -959 -1,111 -960 -606 -367
Cash flows for the period 29 222 218 133 -111
Cash and cash equivalents, beginning of period 777 603 584 712 712
Value adjustment of cash and cash equivalents -13 3 -9 -17 -17
Cash and cash equivalents, end of period 792 828 792 828 584
Interim report
Financials ReportContents
Interim report for Q3 202442
Amounts in DKK million
Balance sheet
·
Assets and liabilities
Note Assets
30/9
2024
31/12
2023
30/9
2023
31/12
2022
Intangible assets 4,356 4,505 4,589 4,267
Property, plant and equipment 6,242 6,169 6,170 6,093
Lease assets 714 846 754 694
Equity investments in associates 403 417 464 498
Equity investments in joint ventures 234 198 207 182
Securities 95 92 95 92
Deferred tax 233 203 224 189
Receivables 196 193 207 199
Total non-current assets 12,472 12,623 12,709 12,214
Inventories 7,420 8,003 8,603 9,043
3 Receivables 7,518 6,321 7,257 6,181
Prepayments 221 169 242 240
Income tax receivable 169 197 103 56
Cash and cash equivalents 792 584 828 712
Total current assets 16,121 15,274 17,032 16,231
Total assets 28,592 27,896 29,741 28,445
Note Equity and liabilities
30/9
2024
31/12
2023
30/9
2023
31/12
2022
6 Share capital 250 255 255 255
Hedging reserve -17 3 4 9
Translation reserve -139 -127 -32 121
Hyperinflation adjustment reserve 70 53 42 45
Retained earnings 10,624 10,064 10,313 9,535
Proposed dividend 0 408 0 383
Equity attributable to parent company shareholders 10,789 10,656 10,582 10,348
Non-controlling interests 907 900 921 889
Total equity 11,696 11,556 11,503 11,237
Deferred tax 514 488 536 480
Pension obligations 60 78 42 48
Other liabilities 165 160 158 165
Liability regarding put options 601 545 527 483
Interest-bearing debt 4,567 5,089 3,941 5,842
Non-current liabilities 5,907 6,360 5,204 7,017
Interest-bearing debt 2,295 2,018 2,772 838
Trade payables and other payables 7,750 7,039 9,332 8,492
Prepayments from customers 197 191 212 275
Deferred income 160 28 129 17
Liability regarding put options 391 396 392 388
Income tax 197 309 199 180
Current liabilities 10,989 9,981 13,035 10,191
Total liabilities 16,896 16,341 18,239 17,208
Total equity and liabilities 28,592 27,896 29,741 28,445
Notes without reference: Capital resources (note 5), Fair value of categories of financial assets and liabili-
ties (note 7), Related party transactions (note 8) and Accounting policies, judgements and estimates and
special risks (note 9).
Interim report
Financials ReportContents
Interim report for Q3 202443
Amounts in DKK million
Statement of changes in equity
Share capital Hedging reserve Translation reserve
Hyperinflation
adjustment
reserve
Retained
earnings
Proposed
dividend Total
Non-controlling
interests Equity
Equity at 1 January 2023 255 9 121 45 9,535 383 10,348 889 11,237
Profit and other comprehensive income:
Profit for the period 0 0 0 0 716 0 716 40 756
Other comprehensive income 0 -5 -153 -3 0 0 -161 -1 -163
Total recognised comprehensive income 0 -5 -153 -3 716 0 555 39 594
Transactions with owners:
Share-based payment 0 0 0 0 23 0 23 0 23
Distributed dividends 0 0 0 0 30 -383 -353 -7 -360
Value adjustment of put option 0 0 0 0 -45 0 -45 0 -45
Purchase of treasury shares 0 0 0 0 -19 0 -19 0 -19
Sale of treasury shares 0 0 0 0 73 0 73 0 73
Total transactions with owners during the period 0 0 0 0 62 -383 -321 -7 -328
Equity at 30 September 2023 255 4 -32 42 10,313 0 10,582 921 11,503
Equity at 1 January 2024 255 3 -127 53 10,064 408 10,656 900 11,556
Profit and other comprehensive income:
Profit for the period 0 0 0 0 730 0 730 30 760
Other comprehensive income 0 -20 -11 17 0 0 -14 -1 -15
Total recognised comprehensive income 0 -20 -11 17 729 0 716 29 744
Transactions with owners:
Share-based payment 0 0 0 0 24 0 24 0 24
Distributed dividends 0 0 0 0 35 -408 -373 -21 -395
Value adjustment of put option 0 0 0 0 -50 0 -50 0 -50
Capital reduction -5 0 0 0 5 0 0 0 0
Purchase of treasury shares 0 0 0 0 -228 0 -228 0 -228
Sale of treasury shares 0 0 0 0 46 0 46 0 46
Total transactions with owners during the period -5 0 0 0 -170 -408 -583 -21 -604
Equity at 30 September 2024 250 -17 -139 70 10,624 0 10,789 907 11,696
Interim report
Financials ReportContents
Interim report for Q3 202444
Amounts in DKK million
Based on management control and financial management, Schouw & Co. has identified six reporting segments, which are BioMar, GPV,
HydraSpecma, Borg Automotive, Fibertex Personal Care and Fibertex Nonwovens. Management primarily evaluates reporting segments based
on the performance measures EBITDA and EBIT but also regularly considers the segments’ cash flows from operations and working capital. All
inter-segment transactions were made on an arm’s length basis.
Capex is defined as the net cash flow for the year for investment in property plant and equipment and intangible assets.
Acquisitions are defined as cash flows for the year from investment in acquisition and divestment of businesses, including associates and joint
ventures.
1
Segment reporting
Reporting segments YTD 2024 BioMar GPV HydraSpecma Borg Automotive
Fibertex
Personal Care
Fibertex
Nonwovens
Reporting
segments
Parent
company
Group
eliminations etc. Total
External revenue 12,355 6,818 2,241 1,541 1,418 1,743 26,117 0 0 26,117
Intra-group revenue 0 1 0 0 8 0 10 12 -20 1
Segment revenue 12,355 6,820 2,241 1,541 1,427 1,743 26,127 12 -20 26,119
EBITDA 1,094 486 253 139 134 159 2,265 -43 0 2,222
Depreciation and impairment 261 237 100 56 90 82 826 1 0 827
EBIT 833 249 152 83 44 77 1,439 -44 0 1,395
Share of profit in associates and JVs 35 0 0 0 0 0 35 0 0 35
Tax on profit for the year -175 -48 -22 -8 -4 -19 -276 -28 0 -304
Profit for the period 530 31 76 36 8 -19 662 98 0 760
Segment assets 12,208 7,403 2,782 2,602 2,056 2,583 29,633 16,907 -17,948 28,592
Of which goodwill 1,515 357 296 516 99 120 2,903 0 0 2,903
Equity investments in associates and JVs 626 0 11 0 0 0 637 0 0 637
Segment liabilities 8,544 5,022 1,761 1,472 1,020 1,741 19,559 7,145 -9,808 16,896
Working capital 1,993 2,583 922 750 315 551 7,114 -56 0 7,057
Net interest-bearing debt 2,173 2,346 1,028 715 566 1,282 8,111 -2,221 0 5,890
Cash flows from operating activities 882 264 192 -15 133 57 1,513 133 19 1,665
Capital expenditure 142 129 73 52 80 39 514 2 0 516
Acquisitions (divestments) 0 0 2 0 0 0 2 0 0 2
Average no. of employees 1,596 7,957 1,467 2,108 707 1,110 14,945 22 0 14,967
Noter
Interim report
Financials ReportContents
Interim report for Q3 202445
Amounts in DKK million
1
Segment reporting (continued)
Reporting segments YTD 2023 BioMar GPV HydraSpecma Borg Automotive
Fibertex
Personal Care
Fibertex
Nonwovens
Reporting
segments
Parent
company
Group
eliminations etc. Total
External revenue 13,665 7,920 2,243 1,442 1,434 1,655 28,359 0 0 28,359
Intra-group revenue 0 0 0 0 10 0 10 10 -20 0
Segment revenue 13,665 7,920 2,243 1,442 1,444 1,655 28,369 10 -20 28,359
EBITDA 853 565 249 118 210 130 2,125 -39 0 2,086
Depreciation and impairment 258 229 94 55 92 73 802 1 0 802
EBIT 595 336 155 63 117 57 1,323 -40 0 1,284
Share of profit in associates and JVs 37 0 0 0 0 0 37 0 0 37
Tax on profit for the year -106 -82 -26 -11 -22 -7 -253 -23 0 -276
Profit for the period 376 115 99 41 69 -24 676 81 0 756
Segment assets 13,298 8,067 2,716 2,357 2,016 2,699 31,153 16,657 -18,068 29,741
Of which goodwill 1,602 353 291 516 99 122 2,983 0 0 2,983
Equity investments in associates and JVs 661 0 10 0 0 0 671 0 0 671
Segment liabilities 9,713 5,732 1,791 1,312 961 1,778 21,287 7,101 -10,149 18,239
Working capital 1,378 2,787 945 653 356 581 6,702 8 0 6,710
Net interest-bearing debt 1,936 2,507 1,088 438 524 1,313 7,806 -2,093 0 5,714
Cash flows from operating activities 1,147 79 116 41 201 46 1,631 95 22 1,748
Capital expenditure 174 200 133 47 40 77 670 0 0 670
Acquisitions (divestments) 1 0 378 0 0 0 379 0 0 379
Average no. of employees 1,605 8,671 1,442 2,001 709 1,087 15,515 19 0 15,534
Revenue by country
YTD
2024
YTD
2023
Norway 4,560 5,127
Chile 2,456 3,324
Denmark 1,597 1,740
Germany 1,340 1,234
Ecuador 1,301 1,033
USA 1,236 1,178
Other 13,629 14,722
Total 26,119 28,359
The data on revenue by geography is based on customers’ geographical location, while data on property, plant and equipment and lease assets
by geography is based on the geographical location of the assets. The specification shows individual countries that account for more than 5%
of the Group in terms of revenue or assets. As Schouw & Co.’s consolidated revenue is generated in some 100 different countries, a very large
proportion of revenue derives from the ‘Other’ category. Intangible assets are not classified by geography, as the value of neither customers nor
goodwill can be precisely allocated to specific countries.
17%
9%
6%
5%
5%
52%
5%
2024
18%
12%
6%
52%
4%
4%
4%
2023
Interim report
Financials ReportContents
Interim report for Q3 202446
Amounts in DKK million
2
Operating expenses
Q3
2024
Q3
2023
YTD
2024
YTD
2023
Cost of sales, including write-down of inventories, net -6,873 -7,805 -18,323 -20,839
Staff costs -1,025 -997 -3,161 -3,041
Repairs and maintenance -78 -73 -242 -231
Energy costs -144 -148 -406 -436
Freight costs -210 -215 -588 -623
Other costs -387 -374 -1,193 -1,113
Total operating expenses -8,717 -9,613 -23,913 -26,283
Share-based payment: Share option programme
The company has an incentive programme for the management and senior managers, including the executive management of subsidiaries.
The programme entitles participants to acquire shares in Schouw & Co. at a price based on the quoted price at around the time of grant plus
a calculated rate of interest of 2.00% from the date of grant until the date of exercise. The exercise price is adjusted by deduction of ordinary
dividends, which cannot exceed the accrued interest. Costs relating to the option programme are calculated on the basis of the Black &
Scholes model and are expensed under staff costs on a straight-line basis over the vesting period.
Outstanding options
Executive
management Other Total
Outstanding options at 31 December 2023 216,187 1,239,000 1,455,187
Exercised (from 2020 grant) - -88,000 -88,000
Lapsed (from 2020 grant) -45,000 -45,000
Lapsed (from 2021 grant) - -10,000 -10,000
Lapsed (from 2022 grant) - -12,000 -12,000
Outstanding options at 30 September 2024 171,187 1,129,000 1,300,187
3
Receivables (current)
30/9
2024
30/9
2023
Trade receivables 7,027 6,793
Other current receivables 492 464
Total current receivables 7,518 7,257
30/9 2024 Not fallen due
Due between (days)
1-30 31-90 >91 Total
Trade receivables 6,035 556 313 265 7,169
Impairment losses on trade receivables -41 -5 -21 -76 -143
Trade receivables, net 5,995 551 292 190 7,027
Proportion of total receivables expected to be settled 98.0%
Impairment rate 0.7% 0.9% 6.8% 28.6% 2.0%
30/9 2023 Not fallen due
Due between (days)
1-30 31-90 >91 Total
Trade receivables 5,705 701 283 249 6,938
Impairment losses on trade receivables -36 -5 -16 -88 -145
Trade receivables, net 5,669 697 267 161 6,793
Proportion of total receivables expected to be settled 97.9%
Impairment rate 0.6% 0.7% 5.7% 35.5% 2.1%
Impairment losses on trade receivables
30/9
2024
30/9
2023
Impairment losses, beginning of period -134 -195
Foreign exchange adjustments 3 12
Impairment losses for the year -32 -14
Realised loss 21 53
Impairment losses, end of period -143 -145
Trade receivables by portfolio company
BioMar
GPV
HydraSpecma
Borg Automotive
Fibertex Personal Care
Fibertex Nonwovens
57%
19%
9%
6%
4%
4%
2024
58%
19%
10%
5%
5%
4%
2023
Interim report
Financials ReportContents
Interim report for Q3 202447
Amounts in DKK million
4
Acquisitions
YTD
2024
YTD
2023
Customer relations 0 118
Technology 0 140
Other intangible assets 0 25
Property, plant and equipment 1 8
Lease assets 0 1
Financial assets 0 3
Inventories 4 92
Receivables 2 76
Cash and cash equivalents 1 40
Credit institutions 0 -100
Trade payables -3 -52
Other payables -1 -42
Tax payable 0 -1
Deferred tax 0 -62
Net assets acquired 3 245
Goodwill 0 172
Acquisition cost 3 417
Of which cash and cash equivalents -1 -40
Total cash acquisition costs 2 378
HydraSpecma acquired Agder Slangeservice AS in June 2024 as a part of the company’s ambition to strengthen its presence in
Norway. Agder Slangeservice is a good match for HydraSpecmas Nordic OEM/IAM Division, which serves customers within the national
manufacturers and aftermarket segments.
2023
HydraSpecma acquired the wind division from Ymer Technology effective on 1 February 2023. The acquisition includes approximately 180
employees working for companies in Sweden, Denmark, the USA, India and China. The acquisition gives HydraSpecma strong competen-
cies within cooling and conditioning of wind turbine nacelles, which complement HydraSpecma’s existing expertise as a subcontractor to the
wind turbine industry.
Interim report
Financials ReportContents
Interim report for Q3 202448
Amounts in DKK million
5
Capital resources
It is group policy when raising loans to maximise flexibility by diversifying borrowing in respect of maturity/renegotiation dates and counter-
parties, with due consideration to costs. The Group’s capital resources consist of cash and undrawn credit facilities. The Group’s objective is
to have sufficient capital resources to make company acquisitions and to allow it to continue to operate the business in an adequate manner
and to react to unforeseen fluctuations in the use of supply chain financing arrangements and any other fluctuations in its cash holdings.
Loans and
lines
Of which
utilised Unutilised Commitment Avg. term to maturity
Revolving credit facility 3,275 1,628 1,647 Committed 1 yrs 3 mths
Schuldschein 1,879 1,879 0 Committed 3 yrs 1 mth
Mortgages 259 259 0 Committed 18 yrs
Term loans 350 350 0 Committed 4 mths
NIB loans 400 400 0 Committed 4 yrs 3 mths
Nordic Bond 1,161 1,161 0 Committed 4 yrs 9 mths
Other credit facilities 604 427 177 Uncommitted
Leases 759 759 0 Committed 2 yrs
Cash and cash equivalents 792
Facility before deduction of guarantee commitments 2,616
Guarantee commitments deducted from the facility -42
Capital resources at 30 September 2024 2,574
The Group’s companies get a significant proportion of their financing from the credit facilities of the parent company Schouw & Co. The
parent company’s financing consists mainly of a syndicated bank facility with a total facility line of DKK 3,275 million. The facility expires in
January 2026. The bank consortium consists of Danske Bank, DNB, Nordea and HSBC.
Schouw & Co. issued Schuldscheins for EUR 136 million (DKK 1,014 million) in April 2019 and for EUR 225 million (DKK 1,677 million) in
November 2023. Of the Schuldsheins established in 2019, EUR 109 million have expired, and EUR 27 million will expire in April 2026. The
Schuldsheins established in 2023 expire in November 2026, November 2028 and November 2030.
In December 2021, Schouw & Co. set up a DKK 400 million seven-year loan with the Nordic Investment Bank related to specific Danish
capacity-expanding investments and development costs.
In 2023, Schouw & Co. established a term loan of DKK 350 million, which falls due in January 2025.
In June 2024, Schouw & Co. issued a bond in the Norwegian market of NOK 1,300 million (DKK 843 million), maturing in June 2029. In
September 2024, the bond issue was increased by a tap issue of an additional NOK 500 million, increasing the total amount of the issue to
NOK 1,800 million (DKK 1,161 million).
6
Share capital and earnings per share (DKK)
The share capital consists of 25,000,000 shares with a nominal value of DKK 10 each. All shares rank equally. The share capital is fully paid
up. Each share carries one vote, for a total of 25,000,000 voting rights. At the beginning of the year, the share capital consisted of 25,500,000
shares with a nominal value of DKK 10 each. In May 2024, the capital was reduced by cancellation of 500,000 shares of DKK 10 each accord-
ing to company announcement no. 30/2024 of 17 May.
Treasury shares Number of shares Nominal value (DKK) Cost
Percentage of
share capital
Treasury shares held at 1 January 2023 2,082,176 20,821,760 763 8.17%
Share option programme -142,000 -1,420,000 -20 -0.56%
Purchase of treasury shares 34,000 340,000 19 0.13%
Treasury shares held at 30 September 2023 1,974,176 19,741,760 762 7.74%
Share option programme -40,000 -400,000 -6 -0.16%
Purchase of treasury shares 103,800 1,038,000 56 0.41%
Treasury shares held at 31 December 2023 2,037,976 20,379,760 812 7.99%
Share option programme -88,000 -880,000 -135 -0.35%
Purchase of treasury shares 408,837 4,088,370 228 1.75%
Capital reduction -500,000 -5,000,000 0 -1.96%
Treasury shares held at 30 September 2024 1,858,813 18,588,130 906 7.44%
The Group’s holding of treasury shares had a market value of DKK 1,082 million at 30 September 2024. The portfolio of treasury shares is
recognised at DKK 0. In 2024, Schouw & Co. sold shares held in treasury for proceeds of DKK 46 million in connection with the Group’s
share option programme. In connection with the options being exercised, 88,000 shares were bought back for a consideration of DKK 50
million. In addition, the Group purchased 320,837 treasury shares under its share buy-back programmes.
Q3
2024
Q3
2023
YTD
2024
YTD
2023
Share of the profit for the year attributable to shareholders of Schouw & Co. 340 400 730 716
Average number of shares 25,000,000 25,500,000 25,250,000 25,500,000
Average number of treasury shares -1,805,875 -1,974,176 -1,951,998 -2,000,553
Average number of outstanding shares 23,194,125 23,525,824 23,298,002 23,499,447
Average dilutive effect of outstanding share options
1
41,051 0 30,267 23,071
Diluted average number of outstanding shares 23,235,176 23,525,824 23,328,269 23,522,518
Earnings per share of DKK 10 14.65 16.99 31.31 30.47
Diluted earnings per share of DKK 10 14.62 16.99 31.27 30.44
1) See note 2 for information on options that may cause dilution.
Interim report
Financials ReportContents
Interim report for Q3 202449
Amounts in DKK million
7
Fair value of categories of financial assets and liabilities
30/9
2024
31/12
2023
30/9
2023
Financial assets:
Other securities and investments (2) 91 90 93
Derivative financial instruments (2) 50 23 40
Other securities and investments (3) 3 2 2
Financial liabilities
Derivative financial instruments (2) 36 58 33
Contingent consideration (3) 0 0 204
Liabilities regarding put options (3) 992 941 919
The fair value of financial assets and liabilities measured at amortised cost corresponds in all material respects to the carrying amount.
Securities measured at fair value through other comprehensive income (level 3) amounted to DKK 2 million at the beginning of the year. By
the end of the third quarter, the holding had increased by DKK 1 million to DKK 3 million.
The Group uses forward currency contracts to hedge fluctuations in foreign exchange rates. Forward currency contracts are valued using
generally accepted valuation techniques based on relevant observable exchange rates (level 2). Other securities and investments forming
part of a trading portfolio (level 2) includes the shareholding in Incuba A/S.
The fair value of derivative financial instruments is calculated by way of valuation models such as discounted cash flow models. Anticipated
cash flows for individual contracts are based on observable market data such as interest rates and exchange rates. Fair values are also based
on credit risk. Non-observable market data account for an insignificant part of the fair value of the derivative financial instruments at the end
of the reporting period.
Contingent consideration (earn-out) is measured at fair value on the basis of the income approach. The Group currently has no liabilities
regarding contingent consideration.
The liability relating to put options amounted to DKK 941 million at the beginning of the year. A change in the liability of DKK 56 million and
a negative foreign exchange adjustment of DKK 5 million were recognised during the year. At the end of the quarter, the liability amounted to
DKK 992 million.
8
Related party transactions
Under Danish legislation, Givesco A/S, Lysholt Allé 3, DK-7100 Vejle, members of the Board of Directors, key members of management
as well as their family members are considered to be related parties. Related parties also comprise companies in which the individuals
mentioned above have material interests. Related parties also comprise subsidiaries, joint arrangements and associates, in which Schouw
& Co. has control, significant influence or joint control of as well as members of the boards of directors, management boards and senior
management of those companies.
YTD
2024
YTD
2023
Joint ventures:
During the reporting period, the Group sold goods in the amount of 5 5
During the reporting period, the Group had interest income in the amount of 0 2
At 30 September, the Group had a receivable of 1 48
During the reporting period, the Group received dividends in the amount of 5 21
Associates:
During the reporting period, the Group sold goods in the amount of 375 506
During the reporting period, the Group bought goods in the amount of 104 99
At 30 September, the Group had a receivable of 276 282
At 30 September, the Group had debt in the amount of 21 9
During the reporting period, the Group received dividends in the amount of 6 9
During 2024, the Group has traded with BioMar-Sagun, BioMar-Tongwei, LetSea, ATC Patagonia, Salmones Austral, LCL Shipping, Young
Tech Co. and Micron Specma India. Other than as set out above, there were no transactions with related parties.
Schouw & Co. has registered the following shareholders as holding 5% or more of the share capital: Givesco A/S (28.66%), Direktør Svend
Hornsylds Legat (15.12%) and Aktieselskabet Schouw & Co. (7.44%).
9
Accounting policies, judgments and estimates and special risks.
For the Group’s accounting policies, judgements and estimates and special risks, please see the Management’s report, page 8.
Interim report
Financials ReportContents
Interim report for Q3 202450
Aktieselskabet Schouw & Co.
Chr. Filtenborgs Plads 1
DK-8000 Aarhus C
T +45 86 11 22 22
www.schouw.dk
schouw@schouw.dk
Comp. reg. no. 63965812