Quarterly report 2023
Page 1
CVR: 36440414
INTERIM REPORT Q2
2023
Accounting period:
1. January – 30. June 2023
Revenue
(DKKm)
H1: 252.1 (+24.4%)
Q2: 122.8 (+15.2%)
EBIT before special items
(DKKm)
H1: 17.5 (+62.0%)
Q2: 9.7 (+84.2%)
EBIT margin before special items
H1: 7.0% (+1.7pp)
Q2: 7.9% (+2.9pp)
ROIC
H1: 16.9% (+5.8pp)
Order backlog
(DKKm)
H1: 212.4 (+1.4%)
Quarterly report 2023
Page 2
This document contains forward-looking statements. Words such as believe, expect, may, will, plan, strategy, prospect, foresee, estimate, project,
anticipate, can, intend, outlook, guidance, target and other words and terms of similar meaning in connection with any discussion of future operation
of financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in
considerable deviations from the outlookset forth. Furthermore, some of these expectations are based on assumptions regarding future events which
may prove incorrect
Important notice about this document
CONTENTS
Quarterly report 2023
Page 2
1 Q2 2023 IN BRIEF 3
2 KEY FIGURES AND FINANCIAL RATIOS 4
3 FINANCIAL REVIEW Q2 2023 8
4 SKAKO CONCRETE 14
5 SKAKO VIBRATION 18
6 FINANCIAL STATEMENTS 22
6.1 STATEMENT BY MANAGEMENT 23
6.2 CONSOLIDATED INCOME STATEMENT 24
6.3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 25
6.4 CONSOLIDATED BALANCE SHEET 30 JUNE 26
6.5 CONSOLIDATED CASH FLOW STATEMENT 28
6.6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 29
6.7 SEGMENT INFORMATION 31
6.8 QUARTERLY KEY FIGURES AND FINANCIAL RATIOS 33
Quarterly report 2023
Page 3
1. Q2 2023 IN BRIEF
Order intake
(DKKm)
Order backlog
(DKKm)
Revenue
(DKKm)
EBIT before special items
(DKKm)
EBIT margin
before special items
Earnings per share
(DKKm)
Employees ROIC
132.6
(-18.7%)
212.4
(+1.4%)
122.8
(+15.2%)
9.7
(+84.2%)
7.9%
(+2.9pp)
1.97
(+1.25)
208
(+1.5%)
16.9%
(+5.8pp)
Down from 163.2 in Q2 2022 Up from 209.6 in Q2 2022 Up from 106.6 in Q2 2022 Up from 5.3 in Q2 2022 Up from 5.0% in Q2 2022 Up from 0.72 in Q2 2022 Up from 205 in Q2 2022 Up from 11.1% in Q2 2022
Quarterly report 2023
Page 3
SKAKO Concrete
62.8 (mDKK)
EBIT margin 6.1%
SKAKO Vibration
61.6 (mDKK)
EBIT margin 11.0%
Revenue split by
Concrete &
Vibration
After sales
42.7 (mDKK)
Plant sales
80.1 (mDKK)
Revenue split
by plant sales
and aftersales
Quarterly report 2023
Page 4
2. KEY FIGURES AND FINANCIAL RATIOS
DKK thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
INCOME
STATEMENT
Revenue
122,774 106,584 252,134 202,601
437,920
Gross
profit
30,606 26,334 59,400 51,663
114,637
Operating profit (EBIT)
before special items
9,707 5,270 17,535 10,825
30,842
Special items
- (1,650) (1,934) (1,650)
(1,650)
Operating
profit (EBIT) after special items
9,707 3,620 15,601 9,175
29,192
Net
financial items (1,541) (1,266) (2,575) (1,738)
(4,962)
Profit
before tax 8,166 2,354 13,026 7,437
24,230
Profit
for the year 6,088 2,222 9,462 5,838
25,074
BALANCE
SHEET
Non
-current assets
95,510 79,865 95,510 79,865
88,599
Current
assets
318,369 246,078 318,369 246,078
295,458
Assets
413,879 325,943 413,879 325,943 384,057
Equity
142,565 127,923 142,565 127,923 146,167
Non
-current liabilities 28,733 30,056 28,733 30,056 26,473
Current liabilities
242,581 167,965 242,581 167,965 211,417
Net debt
57,619
30,171 57,619 30,171
20,997
Net working capital
140,280
106,488 140,280 106,488
110,681
OTHER KEY
FIGURES
Investment in intangible assets
47
1,238 80 1,473 4,153
Investment in tangible assets
2,881 540 9,707 1,005
3,179
Cash flow from operating activities (CFFO)
(15,327) 10,542 (10,445) 10,432
28,850
Free cash flow
(18,255) 8,763 (20,232) 7,953
20,183
Average number of employees
208 205 208 205
205
Quarterly report 2023
Page 5
KEY FIGURES AND FINANCIAL RATIOS CONTINUED
DKK thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
FINANCIAL
RATIOS
Gross
profit margin
24.9% 24.7% 23.6%
25.5%
26.2%
Profit
margin (EBIT margin) before special items
7.9% 5.0% 7.0% 5.3%
7.0%
Profit margin (EBIT margin)
after special items
7.9% 3.4% 6.2% 4.5%
6.7%
Liquidity ratio
131.2% 145.6% 131.2% 145.6%
140.1%
Equity ratio
34.4% 39.0% 34.4%
39.0%
38.3%
Return
on equity
21.2% 10.6% 21.2% 10.6%
17.9%
ROIC
16.9% 11.1% 16.9%
11.1%
16.5%
Financial leverage
40.4% 24.2% 40.4% 24.2% 14.2%
Net debt to EBITDA
1.3 1.1 1.3
1.1
0.5
NWC/Revenue
28.8% 27.3% 28.8%
27.3%
25.3%
Earnings per share
1.97 0.72 3.07 1.89
8.13
Equity value per share
46.2 41.5 46.2
41.5
48.0
Share price
73.5 55.0 73.5 55.0 62.6
Price
-book ratio
1.6 1.3 1.6 1.3 1.3
Market capitalization
228,322 170,853 228,322 170,853 194,461
Order backlog
212,433
209,582 212,433
209,582 215,202
Page 5
For calculation of financial ratios please see page 35. Net working capital is calculated as inventory, trade receivables and contract assets less contract liabilities and trade payables. Backlog represents revenue from signed
contracts or orders executed but not yet completed or performed in full.
Quarterly report 2023
Page 6
KEY FIGURES AND FINANCIAL RATIOS – EUR
EUR thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
INCOME
STATEMENT
Revenue
16,488 14,326 33,860 27,231
58,883
Gross
profit
4,110 3,539 7,977 6,944
15,414
Operating
profit (EBIT) before special items
1,304 708 2,355 1,455
4,147
Special items
- (222) (260) (222)
(222)
Operating profit (EBIT)
after special items
1,304 487 2,095 1,233
3,925
Net
financial items (207) (170) (346) (234)
(667)
Profit
before tax 1,097 316 1,749 1,000
3,258
Profit
for the year 818 299 1,271 785
3,371
BALANCE
SHEET
Non
-current assets
12,824 10,735 12,824 10,735
11,913
Current
assets
42,748 33,075 42,748 33,075
39,728
Assets
55,572 43,810 55,572 43,810 51,640
Equity
19,142 17,194 19,142 17,194 19,654
Non
-current liabilities 3,858 4,040 3,858 4,040 3,560
Current liabilities
32,572 22,576 32,572 22,576 28,430
Net debt
7,737
4,055 7,737 4,055
2,824
Net working capital
18,836
14,313 18,836 14,313
14,884
OTHER KEY
FIGURES
Investment in intangible assets
6
198 11 198 558
Investment in tangible assets
387 41 1,303 135
427
Cash flow from operating activities (CFFO)
(2,058) 1,417 (1,402) 1,420
3,879
Free cash flow
(2,451) 1,178 (2,717) 1,087
2,714
Average number of employees
208 205 208 205
205
Quarterly report 2023
Page 7
KEY FIGURES AND FINANCIAL RATIOS – EUR CONTINUED
EUR thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
FINANCIAL
RATIOS
Gross
profit margin
24.9% 24.7% 23.6% 25.5%
26.2%
Profit margin (EBIT margin)
before special items
7.9% 5.0% 7.0% 5.3%
7.0%
Profit
margin (EBIT margin) afer special items
7.9% 3.4% 6.2% 4.5%
6.7%
Liquidity ratio
131.2% 145.6% 131.2% 145.6%
140.1%
Equity ratio
34.4% 39.0% 34.4% 39.0%
38.3%
Return
on equity
21.2% 10.6% 21.2% 10.6%
17.9%
ROIC
16.9% 11.1% 16.9% 11.1% 16.5%
Financial leverage
40.4% 24.2% 40.4% 24.2% 14.2%
Net debt to EBITDA
1.3 1.1 1.3 1.1 0.5
NWC/Revenue
28.8% 27.3% 28.8% 27.3%
25.3%
Earnings per share
0.27 0.10 0.41 0.25
1.09
Equity value per share
6.21 5.58 6.21 5.58 6.45
Share price
9.87 7.39 9.87 7.39 8.42
Price
-book ratio
1.59 1.33 1.59 1.33 1.3
Market capitalization
30,657 22,964 30,657 22,964 26,150
Order backlog
28,524
28,170 28,524 28,170
28,939
Quarterly report 2023
Page 8
3. FINANCIAL REVIEW Q2 2023
DKK thousands
Q2 2023 Q2 2022 Change H1 2023 H1 2022 Change
Plant sales revenue
80,059 62,872 27.3% 165,593 117,439 41.0%
Aftersales revenue
42,715 43,712 -2.3% 86,541 85,162 1.6%
Total revenue
122,774 106,584 15.2% 252,134 202,601 24.4%
Production costs
(92,168) (80,250) 14.9% (192,734) (150,938) 27.7%
Gross profit
30, 606 26,334 16.2% 59,400 51,663 15.0%
Gross profit margin
24.9% 24.7% 0.2pp 23.6% 25.5% -1.9pp
Distribution costs
(11,648) (11,181) 4.2% (23,320) (22,565) 3.3%
Administrative expenses
(9,251) (9,882) -6.4% (18,545) (18,272) 1.5%
Operating profit (EBIT) before special items
9,707 5,270 84.2% 17,535 10,826 62.0%
Operating profit margin (EBIT margin) before special items
7.9% 5.0% 2.9pp 7.0% 5.3% 1.7pp
Special items
- (1,650) NA (1,934) (1,650) 17.2%
Operating profit (EBIT)
after special items 9,707 3,620 168.1% 15,601 9,175 70.0%
Operating profit margin (EBIT margin)
after special items 7.9% 3.4% 4.5pp 6.2% 4.5% 1.7pp
Profit for the period
6,088 2,222 174.0% 9,462 5,838 62.1%
Order backlog beginning of period
202,608 152,985 32.4% 215,202 122,309 75.9%
Order intake
132,599 163,181 -18.7% 249,365 289,874 -14.0%
Revenue
(122,774) (106,584) 15.2% (252,134) (202,601) 24.4%
Order backlog end of period
212,433 209,582 1.4% 212,433 209,582 1.4%
0
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40000
60000
80000
100000
120000
140000
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
EBIT %
tDKK
SKAKO Group revenue and EBIT margin
Plant revenue Aftersales revenue EBIT margin
Quarterly report 2023
Page 9
The markets of SKAKO continue to show high level of activity, in line with what
we saw in the second half of 2022.
As expected, SKAKO delivered a strong Q2 with high order intake and improved
profitability. The order backlog continues to be at a very high level in both
Concrete and Vibration. This gives SKAKO a good outset for delivering strong
results in 2023 in accordance with our increased guidance, see company
announcement 8/2023. For a detailed financial review of each business unit,
please see section 4 for SKAKO Concrete and section 5 for SKAKO Vibration.
Revenue
In Q2 2023 revenue was DKK 122.8m which is an increase of 15.2% compared to
the same period in 2022. Revenue from plant orders increased by 27.3%, while
revenue from aftersales decreased by 2.3%, compared to Q2, 2022.
Gross profit
Gross profit was DKK 30.6m in Q2 2023 which is an increase of 16.2% compared
to Q2 2022, driven by higher revenue. Gross profit margin in Q2 2023 increased
by 0.2pp compared to Q2 2022 driven by an increase in gross profit margin in
SKAKO Vibration of 2.8pp.
Capacity costs
Despite the high revenue growth capacity costs decreased by DKK 0.2m or 1.0%
in Q2 2023 compared to Q2 2022 which was impacted by staff investments to
enable future growth.
Operating profit
Operating Profit (EBIT) before special items increased by 84% to DKK 9.7m
compared to Q2 2022.
This was driven by the higher revenue and improved EBIT margin of 2.9pp to
7.9% showing the scalability of our business with almost unchanged capacity
cost despite high revenue growth.
Net financial items
Net financial items consist of interest income, interest expenses as well as
realized and unrealized foreign exchange gains and losses and amount to an
expense of DKK 1.5m for the period compared to an expense of DKK 0.5m in Q2
2022.
Profit for the period
Profit after tax amounted to DKK 6.1m in Q2 2023 compared to DKK 2.2 in the
same period in 2022.
Order intake and backlog
Order intake in Q2 2023 amounted to DKK 132.6m compared to DKK 163.2m in
Q2 in 2022, a decrease of 18.7% due to the very high order intake in Q2 2022.
However, the order intake was still maintained at a high level. The order backlog
increased by 1.4% end of Q2 2023 and thereby maintained the very high level
from previous quarters. The pipeline of new orders remains strong for both
SKAKO Vibration and SKAKO Concrete and gives a strong outset for the rest of
the year.
Financial highlight
Quarterly report 2023
Page 10
Cash flow developments
Cash flow from operating activities (CFFO) amounted to DKK (15.3)m compared
to DKK 10.5m last year. The negative cash flow development in Q2 2023 is due
to delay of a few large payments. Most of the payments have been received
after 30 June 2023.
Free cash flow amounted to DKK (18.3)m due to the negative operating cash
flow and investments in tangible assets to support growth.
Equity
Group equity was DKK 142.6m on 30 June 2023 (DKK 127.9m on 30 June 2022)
corresponding to an equity ratio of 34.5% (39.0% on 30 June 2022).
ROIC
As of 30 June 2023, return on invested capital (rolling four quarters) amounted
to 16.9% compared to 11.1% as of 30 June 2022. The increase in return on
invested capital is due to strong results in the last three quarters compared to
the previous quarters.
Balance sheet
As of 30 June 2023, Group’s total assets were DKK 413.9m (30 June 2022: DKK
325.9m) Non-current assets increased by DKK 15.6m and amounted to DKK
95.4m (30 June 2022: DKK 79.9m) while current assets increased by DKK 72.3m
to DKK 318.4m (30 March 2022: DKK 246.1m). The increase in current assets
relates to increase in trade receivables as well as new rental agreements in
France and US together with increase in deferred tax asset following higher
profits.
Due to the negative cash flow development net debt increased by DKK 27.4m to
DKK 57.6m in Q2 2023. Net debt is expected to decrease again as we have
collected most delayed payments described above.
The ratio of net debt to EBITDA amounted to 1.3 compared to 1.1 on 30 June
2022 due to the negative cash flow development and is expected to improve in
Q3 2023. It is our ambition to keep the ratio of net debt to EBITDA below 2.5.
Events after the balance sheet date
There have been no events that materially affect the assessment of this interim
report after the balance sheet date and up to today.
Outlook 2023
Guidance for 2023 was increased in company announcement 8/2023 and is as
follows:
• Operating profit (EBIT) before special items is expected to be DKK 36-40m.
Special items for 2023 are still expected to amount to DKK 2.0-2.5m related
to transaction costs in connection with the terminated transaction process
with Zefyr Invest.
Expectations are based on current exchange rates, in particular USD/DKK,
remaining at current levels.
The outlook is based on the assumption that no events with a material negative
impact on the global economy and SKAKO's markets will occur in the second half
of 2023.
Accounting policies as well as financial estimates and assumptions
The interim report has been prepared in accordance with IAS 34, Interim
financial reporting, as adopted by the EU and further Danish disclosure
requirements in respect of interim reports for listed companies.
The accounting policies used for the interim report are the same as the
accounting policies used for Annual Report 2022 to which we refer for a full
description. The Group has adopted all new, amended and revised accounting
standards and interpretations as published by the IASB and adopted by the EU
effective for the accounting period beginning on 1 January 2023. We refer to the
notes to the annual report for a description of material estimates and
assumptions.
Compared with the description in Annual Report 2022, there have been no
changes in the accounting estimates and assumptions made by Management in
the preparation of the interim report.
Financial highlight
Quarterly report 2023
Page 11
It all began with vibration technology, which paved SKAKO’s way into the
concrete industry
On 1 July 2023, SKAKO had 60-year anniversary. SKAKO was founded by
Valdemar Skak (1913-1999) and Frits Korsgaard.
To mark the anniversary, we have interviewed Frits Korsgaard about his
memories of SKAKO.
The journey started in Denmark with a new type of vibrator that was applicable
in various industries, invented by Valdemar Skak.
“One day, we received an order from a concrete factory which had heard about
our vibratory feeders which they believed could be useful for them. They
wanted to use the vibratory feeders to proportion sand and stones for their
concrete, and in this way, we entered the concrete industry,” says Frits
Korsgaard.
Following the order from the concrete factory, Frits Korsgaard had an innovative
idea. In the 1960s, most concrete companies mixed the concrete manually. The
sand and gravel for the concrete were loaded by hand with shovels, which was a
heavy and time-consuming work. Therefore, SKAKO decided to develop the
mixing process and launch an automated solution to control the proportioning
of aggregates for the concrete – the “SKAKOMAT,” which is still available today
in a more advanced and digital version.
From this point, SKAKO started to take off:
“The SKAKOMAT solution quickly became the top-selling product in Denmark.
Even today, I can still recall the names of most Danish towns because I visited
almost all approx. 400 Danish concrete factories back then,” remembers Frits
Korsgaard.
Read more here: 60 years with vibratory equipment, machinery for the concrete
industry, quality, and a strong workplace culture - SKAKO A/S
Valdemar Skak and Frits Korsgaard in front of the very first SKAKOMAT control system (Valdemar Skak to the left, Frits Korsgaard to the right).
Quarterly report 2023
Page 12
4. SKAKO CONCRETE
Quarterly report 2023
Page 12
Quarterly report 2023
Page 13
Q2 2023 FINANCIAL REVIEW SKAKO CONCRETE
DKK million
Q2 2023 Q2 2022 Change H1 2023 H1 2022 Change
Plant sales revenue
37.0 18.7 97.9% 78.9 35.8 120.4%
Aftersales revenue
25.8 27.9 -7.5% 53.0 53.1 -0.2%
Total revenue
62.8 46.7 34.5% 131.9 88.9 48.4%
Gross profit
11.8 9.8 20.4% 23.1 18.7 23.5%
Gross profit margin
18.8% 21.0% -2.2pp 17.6% 21.0% -3.4pp
Operating profit (EBIT)
3.8 2.4 58.3% 7.0 4.0 75.0%
Profit margin (EBIT margin)
6.1% 5.1% 1.0pp 5.3% 4.5% 0.8pp
Order backlog beginning of period
124.3 82.1 51.4% 142.7 72.2 97.6%
Order intake
73.5 91.8 -19.9% 124.2 143.9 -13.7%
Order backlog end of period
135.1 126.8 6.5% 135.1 126.8 6.5%
-1
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Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
EBIT %
tDKK
SKAKO Concrete revenue and EBIT margin
Plant revenue Aftersales revenue EBIT margin
Quarterly report 2023
Page 14
FINANCIAL PERFORMANCE IN Q2 2023
Financial performance in Q2 2023
The markets of SKAKO Concrete continue to show high level of activity, in line
with what we saw in the previous quarters.
SKAKO Concrete continued the positive development on key markets resulting in
strong growth in revenue, operating profit and order backlog.
As, in Q1 2023 SKAKO Concrete continued to experience a higher demand for
plants from both existing and new customers.
Financial results
Below, the key financials for SKAKO Concrete in Q2 2023:
• Revenue increased by 35% amounting to DKK 62.8m driven by an increase
in the plant sales of 98% and a decrease of 8% in aftersales. Aftersales in H1
2023 was unchanged compared to same period in 2022.
• Gross profit increased by 20% amounting to DKK 11.8m while gross profit
margin decreased with 2.2pp. The decrease in margin was driven by the
higher share of plant sales with a lower margin than aftersales.
• Operating profit (EBIT) increased by 58% to DKK 3.8m driven by the growth
in revenue and an increase in EBIT margin from 5.1% to 6.1% due to more
or less unchanged capacity cost despite high revenue growth.
• Order intake in Q2 2023 was DKK 73.5m compared to DKK 91.8m in the
same period of 2022 fueling an order backlog of DKK 135.1m at the end of
Q2 2023, an increase of 6.5% compared to last year. The order backlog was
maintained at a high level above DKK 120m for the fifth consecutive
quarter.
Quarterly report 2023
Page 15
BUSINESS UPDATE
Growing order backlog
In the first half of 2023, SKAKO Concrete's order backlog was maintained at a
high level above DKK 120m, and we are fully booked with projects until mid
2024.
We especially see a positive development in Germany, United Kingdom and
United States.
Lately, we have established a cooperation with Erhvervshus Fyn (a Danish
company that promotes business in Funen, Denmark) in order to investigate the
potential within new markets.
Customer Satisfaction Survey
We have received the results from our customer satisfaction survey, made by
In2Minds for the second year in a row, showing that customer satisfaction has
increased.
Our NPS score has gone from 29 to 51. NPS stands for Net Promoter Score and is
a way to measure customer loyalty. The score is calculated on the basis of the
following question: On a scale of 0 – 10, how likely are you to recommend
SKAKO to your friends, colleagues, and family?
A score higher than 40 indicates "top performance," while a score between 20
and 39 indicates a "very good performance," meaning that we have gone from a
high level of satisfaction to an even higher level.
In the survey, the customers especially point out service and product quality as
reasons to choose SKAKO Concrete.
We have also investigated the importance of sustainability among our
customers. Most customers have sustainability in focus, and therefor find it
essential to be offered sustainable products from SKAKO Concrete - a
requirement we are ready to meet.
Knowledge about concrete
As a part of our strategy, we want to become more consultative. Therefore, we
are planning several exclusive customer events in the local markets, where we
will share knowledge about concrete with the customers.
The first local customer event will be in North Germany later this year. The
theme of the event will be sustainability.
Aftersales
Customer care is essential for a business like SKAKO, and therefor we have
sharpened our aftersales strategy. The plan is to reach more out to the
customers to be ahead of their needs. To do so, we have employed two new
Sales Managers, focusing on all the markets we operate in.
Quarterly report 2023
Page 16
5. SKAKO VIBRATION
Quarterly report 2023
Page 16
Quarterly report 2023
Page 17
Q2 2023 FINANCIAL REVIEW SKAKO VIBRATION
DKK thousands
Q2 2023 Q2 2022 Change H1 2023 H1 2022 Change
Plant sales revenue
43.9 44.2 -0.7% 88.1 81.8 7.7%
Aftersales revenue
17.7 16.8 5.4% 35.4 34.1 3.8%
Total revenue
61.6 61.0 1.0% 123.5 115.9 6.6%
Gross profit
19.7 17.8 10.7% 38.0 34.4 10.5%
Gross profit margin
32.0% 29.2% 2.8pp 30.7% 29.7% 1.0pp
Operating profit (EBIT)
6.8 3.9 74.4% 12.6 8.6 46.5%
Profit margin (EBIT margin)
11.0% 6.4% 4.6pp 10.2% 7.4% 2.8pp
Order backlog beginning of period
78.0 72.7 7.3% 72.6 53.9 34.7%
Order intake
60.6 74.3 -18.4% 127.9 148.0 -13.6%
Order backlog end of period
77.0 84.5 -8.9% 77.0 84.5 -8.9%
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60000
70000
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
EBIT %
tDKK
SKAKO Vibration revenue and EBIT margin
Plant revenue Aftersales revenue EBIT margin
Quarterly report 2023
Page 18
FINANCIAL PERFORMANCE IN Q2 2023
Financial performance in Q2 2023
For SKAKO Vibration, Q2 2023 ended with the same high momentum as in the previous
quarters with revenue above DKK 60m and a stabile order backlog above DKK 70m.
Below, the key financials for SKAKO Vibration in Q2 2023:
• Revenue increased by 1% amounting to DKK 61.6m driven by an increase in aftersales of
5% while plant sales decreased by 1%.
• Gross profit increased by 11% amounting to DKK 19.7m due to growth in revenue and an
increase in gross profit margin of 2.8pp. The increase in margin was driven by the higher
share of the aftersales with higher margin than plant sales.
• Operating profit (EBIT) increased with 74% to DKK 6.8m due to growth in revenue and
an increase in EBIT margin of 4.6pp to 11.0%. The increase in EBIT margin was driven by
a higher gross profit margin and a lower growth in capacity costs than the growth in
revenue.
• Order intake in Q2 2023 was DKK 60.6m compared to DKK 74.3m in the same period of
2022 fueling an order backlog of DKK 77.0m at the end of Q2 2023, a decrease of 8.9%
compared to last year but still at a high level.
Quarterly report 2023
Page 19
BUSINESS UPDATE
Growth
The positive development continued in Q2 2023 with high customer
investments, particularly in the Mineral and Recycling segments.
Sharing of knowledge between business units
As a part of our strategy, we want to increase the synergies between SKAKO
Vibration's business units in Denmark, France, and Spain. During the last few
months, we have been focusing on sharing each company's best practices on a
technical level to make work easier and faster for our employees.
Our know-how is based on years of development experience in the Mineral,
Recycling, and Fastener segments, but the vibratory technology is the same,
which is why we often encounter common technical challenges across the
segments. By sharing our know-how between the segments, these challenges
will be easier to overcome.
The European recycling market
Our pipeline of recycling projects has evolved considerably in the first half of
2023 driven by the entire European market and no longer mainly by the markets
of Southern Europe.
This is in line with our deployment strategy, based on our matrix organization
for the three business segments.
Previously, our sales organization was only based on geographic markets, but
from the beginning of the year, it has also been based on our three business
segments. With this change, we are now accelerating the development of sales
in each segment by freeing ourselves from geographical constraints and
matching customer needs with our most efficient solutions.
This strategy has particularly been effective in the recycling sector, where we,
throughout the last years, have developed strongly in Spain and Portugal
through SKAKO Dartek. The challenges we have met in those countries are the
same as in other European countries because the EU has adopted a strong
action plan through the “European Green Deal” to develop the circular
economy. This has resulted in common rules that can be found in all EU
countries - which, of course, have a significant impact on the recycling sector.
All this bodes well for the future of SKAKO Vibration.
Quarterly report 2023
Page 20
6. FINANCIAL STATEMENTS
Quarterly report 2023
Page 20
Quarterly report 2023
Page 21
EXECUTIVE BOARD
BOARD OF DIRECTORS
Quarterly report 2023
Page 22
6.2 CONSOLIDATED INCOME STATEMENT
DKK thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 2022
Revenue from contracts with customers
Production costs
(92,168 ) (80,250 ) (192,734 ) (150,938 )
(323,283 )
Gross profit
Distribution costs
(11,648 ) (11,181 ) (23,320 ) (22,565 )
(43,923 )
Administrative expenses
(9,251 ) (9,882 ) (18,545 ) (18,272 )
(39,872 )
Operating profit (EBIT) before special items
Special items
(1,650 )
Operating profit (EBIT)
after special items
Financial income
Financial expenses
(1,863 ) (1,266 ) (3,127 ) (1,738 ) (5,878 )
Profit before tax
Tax on profit for the period
(2,078 ) (132 ) (3,564 ) (1,599 )
Profit for the period
Profit for the period attributable to SKAKO A/S shareholders
Earnings per share (EPS), DKK
Diluted earnings per share (EPS), DKK
Quarterly report 2023
Page 23
6.3 CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
DKK thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 2022
Profit for the period
Other comprehensive income:
Items that have been or may subsequently be reclassified to the income
statement:
Foreign
currency translation, subsidiaries
Value
adjustments of hedging instruments
(1 ) 5 1
Other comprehensive income
Comprehensive income
Comprehensive income attributable to SKAKO A/S shareholders
Quarterly report 2023
Page 24
6.4 CONSOLIDATED BALANCE SHEET 30 JUNE
DKK thousands
30 June 2023 30 June 2022 31 December 2022
Intangible assets
Intangible assets under development
Intangible assets
Leased assets
Land and buildings
Plant and machinery
Operating equipment, fixtures and fittings
Leasehold improvements
Tangible assets under construction
Property, plant and equipment
Other receivables
Deferred tax assets
Other non
-current assets
Total non
-current assets
Inventories
Trade receivables
Contract assets
Income tax
Other receivables
Prepaid expenses
Cash
Current assets
Assets
Quarterly report 2023
Page 25
CONSOLIDATED BALANCE SHEET 30 JUNE CONTINUED
DKK thousands
30 June 2023 30 June 2022 2022
Share capital
Foreign currency translation reserve
(2,020 ) 1,400 82
Hedging reserve
(44 ) (48 )
(49 )
Proposed dividends
Retained earnings
Equity
Other payables
Leasing
Loans and borrowings
Provisions
Non
-current liabilities
Loans and borrowings
Bank loans and credit facilities
Leasing
Provisions
Contract liabilities
Trade payables
Income tax
Other
liabilities
Deferred income
Current liabilities
Liabilities
EQUITY AND LIABILITIES
Quarterly report 2023
Page 26
6.5 CONSOLIDATED CASH FLOW STATEMENT
DKK thousands
Q2 2023 Q2 2022 H1 2023 H1 2022 2022
Profit
before tax 8,166 2,354 13,026 7,437 24,230
Adjustments
Changes
in receivables, etc.
(16,167 ) 18 (10,828 ) (5,385 )
(25,890 )
Change
in inventories
(3,263 ) (7,928 ) (7,629 ) (13,123 )
(9,367 )
Change
in trade payables and other liabilities, etc.
(5,518 ) 13,319 (7,861 ) 16,249
Cash flow from operating activities before financial items and tax
(13,559 ) 11,860 (7,225 ) 11,750
Financial
items received and paid
(1,541 ) (1,266 ) (2,575 ) (1,738 )
(4,710 )
Taxes
paid and received
(227 ) (51 ) (645 ) 556
(2,105 )
Cash
flow from operating activities (15,327 ) 10,542 (10,445 ) 10,568 28,850
Investment
in intangible assets (47 ) (1,238 ) (80 ) (1,473 ) (4,153 )
Investment
in tangible assets
(2,881 ) (540 ) (9,707 ) (1,005 )
(6,174 )
Acquisition of entities
Cash
flow from investing activities
(2,928 ) (1,779 ) (9,787 ) (2,479 ) (8,637 )
Change in
borrowings
(848 ) (3,183 ) 5,827 (1,797 ) -
Repayments
Paid
dividends
(15,532 ) (12,336 ) (15,532 ) (12,336 ) (12,335 )
Change
in short-term bank facilities
Cash flow from financing activities
(13,739 ) 25,546 (36,891 )
(12,258 )
Change in cash and cash equivalents
(4,931 ) (4,975 ) 5,315 (28,802 ) 7,955
Cash and cash equivalents beginning of the period
Foreign exchange adjustment, cash and cash
(477 )
Cash and cash equivalents at the end of the period
Breakdown of cash and cash equivalents at the end of the year:
Cash and other investments
49,598 11,336 49,598 11,336
45,142
Cash
and cash equivalents at the end of the year:
49,598 11,336 49,598 11,336
45,142
Quarterly report 2023
Page 27
6.6 CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Shared capital
Foreign currency
translation reserve
Hedging reserve
Retained
earnings
Proposed
dividends
Equity
Equity 1 January 2023
Comprehensive
incomein 2023
Profit for the period
Paid dividends
(15,532 ) (15,532 )
Other comprehensive income:
Foreign currency translation
adjustments, subsidiaries
Value adjustments of hedging instruments
Other comprehensive income
Comprehensive income, period
Share
-based payment, warrants
Equity 30 June 2023
(44 ) 109,164 - 142,565
Quarterly report 2023
Page 28
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONTINUED
Shared capital
Foreign currency
translation reserve
Hedging reserve
Retained
earnings
Proposed
dividends
Equity
Equity 1 January 2022
Paid dividends
(12,335 ) (12,335 )
Comprehensive
income in 2022:
Profit for the period*
Other comprehensive income:
Foreign currency translation adjustments, subsidiaries
Value adjustments of hedging instruments
Other comprehensive income
Comprehensive income, period
- 1,851
Share
-based payment, warrants
Equity 30 June 2022
(48 ) 95,507 - 127,923
Quarterly report 2023
Page 29
6.7 SEGMENT INFORMATION
H1 2023
Concrete Vibration
Not distributed including
parent company
Eliminations Group total
Revenue, external
131,859 120,275 252,134
Revenue, internal
4 3,238 (3,242) -
Total revenue
131,863 123,513 (3,242) 252,134
Depreciations
(1,632) (1,754) (3,386)
Operating profit (EBIT) before special items
6,981 12,640 (2,086) 17,535
Special items
- - (1,934) (1,934)
Operating profit (EBIT)
after special items 6,981 12,640 (4,020) 15,601
Order backlog, beginning
142,651 72,551 215,202
Order intake
124,212 127,946 (2,793) 249,365
Order backlog, ending
135,069 76,984
380 212,433
Segment non
-current assets
40,178 44,554
176,989 (166,211) 95,510
Segment assets
227,638 244,117
185,134 (243,010) 413,879
Segment liabilities
151,696 125,655
66,764 (72,801) 271,314
Investments in intangible and tangible asset
2,329 7,458
9,787
Average number of employees
97 111
208
Quarterly report 2023
Page 30
SEGMENT INFORMATION CONTINUED
H1 2022
Concrete Vibration
Not distributed including
parent company
Eliminations Group total
Revenue, external
88,931 113,670 202,601
Revenue, internal
6 2,244 (2,250) -
Total revenue
88,937 115,914 (2,250) 202,601
Depreciations
(1,549) (1,558) (3,107)
Operating profit (EBIT) before special items
4,004 8,587 (1,766) 10,825
Special items
- - (1,650) (1,650)
Operating profit (EBIT)
after special items 4,004 8,587 (3,416) 9,175
Order backlog, beginning
71,822 52,373 (131) 124,064
Order intake
143,880 147,997 (2,003) 289,874
Order backlog, ending
126,764 84,456
(379) 210,841
Segment non
-current assets
30,551 41,197
8,117 79,865
Segment assets
148,921 225,018
(47,996) 325,943
Segment liabilities
88,510 127,393
(17,882) 198,021
Investments in intangible and tangible asset
871 1,608
2,479
Average number of employees
84 109
12 205
Quarterly report 2023
Page 31
6.8 QUARTERLY KEY FIGURES AND FINANCIAL RATIOS
DKK thousands
Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Full year 2022
INCOME STATEMENT
Revenue
122,774 129,360 124,254 111,065 106,584 437,920
Gross profit
30,606 28,794 36,682 26,292 26,334 114,637
Operating profit (EBIT) before special items
9,707 7,828 10,881 9,136 5,270 30,842
Operating profit (EBIT)
after special items 9,707 5,894 10,881 9,136 3,620 29,192
Net financial items
(1,541) (1,034) (3,470) 246 (1,266) (4,962)
Profit before tax
8,166 4,860 7,411 9,382 2,354 24,230
Profit for the year
6,088 3,374 11,117 8,119 2,222 25,074
BALANCE SHEET
Non
-current assets
95,510 92,780 88,599 80,776 79,865 88,599
Current assets
318,369 304,346 295,458 253,727 246,078 295,458
Assets
413,879 397,126 384,057 334,503 325,943 384,057
Equity
142,565 150,256 146,167 133,454 127,923 146,167
Non
-current liabilities
28,733 28,652 26,473 29,640 30,056 26,473
Current liabilities
242,581 218,218 211,417 171,413 167,965 211,417
Net debt
57,619 23,355 20,997 28,444 30,171 20,997
Net working capital
140,280 113,514 110,681 113,387 106,488 110,681
OTHER KEY FIGURES
Investment in intangible and tangible assets
2,928 6,859 4,557 296 1,779 7,332
Cash flow from operating activities (CFFO)
(16,286) 4,883 13,731 4,687 10,542 28,850
Free cash flow
(19,214) (1,976) 7,840 4,390 8,763 20,183
Average number of employees
208 207 205 199 205 205
Quarterly report 2023
Page 32
QUARTERLY KEY FIGURES AND FINANCIAL RATIOS CONTINUED
DKK thousands
Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Full year 2022
FINANCIAL
RATIOS
Gross
profit margin 24.9% 22.3% 29.5% 23.7% 24.7% 26.2%
Profit
margin (EBIT margin) before special items 7.9% 6.1% 8.8% 8.2% 5.0% 7.0%
Profit margin (EBIT margin)
after special items 7.9% 4.6% 8.8% 8.2% 3.4% 6.7%
Liquidity ratio
131.2% 139.5% 139.8% 148.0% 145.6% 140.1%
Equity ratio
34.4% 37.8% 38.1% 39.9% 39.0% 38.3%
Return
on equity 21.2% 17.4% 18.0% 14.4% 10.6% 17.9%
ROIC
16.9% 17.1% 16.8% 13.6% 11.1% 16.5%
Financial
leverage 40.4% 15.5% 14.4% 21.3% 24.2% 14.2%
Net
debt to EBITDA 1.3 0.7 0.5 0.8 1.0 0.5
NWC/revenue
28.8% 24.1% 25.1% 27.0% 27.3% 25.3%
Earnings per share
1.97 1.09 3.61 2.63 0.72 8.13
Equity value per share
46.23 48.72 47.40 43.28 41.48 48.0
Share price
73.5 81.0 62.6 50.00 55.00 62.6
Price
-book ratio 1.59 1.66 1.32 1.16 1.33 1.3
Market capitalization
228,322 251,620 194.462 155,321 170.853 194,461
Quarterly report 2023
Page 33
FINANCIAL RATIO
• Financial ratios are calculated as follows:
• Gross profit margin = Gross profit x 100 / Revenue
• Profit margin = EBIT x 100 / Revenue
• EBIT margin before special items = EBIT before special items x 100
/ Revenue
• EBIT after special items = EBIT after special items x 100 / Revenue
• Liquidity ratio = Total current assets x 100 / Total current liabilities
• Equity ratio = Total equity x 100 / Total assets
• Return on equity = Profit for the period x 100 / (Equity this year +
equity prior year) / 2*
• Financial leverage = Net interest-bearing debt x 100 / Equity
• Net debt to EBITDA = Net debt / EBITDA (EBIT less depreciations)*
• NWC/Revenue = Net working capital x 100 / Revenue*
• Earnings per share = Profit for the period / Shares in free flow
• Equity value per share = Equity / Total shares
• Share price = Share price at end of period
• Price-book ratio = Share price / Equity per share
• Market capitalization = Total number of share x Share price
• ROIC = NOPAT / (Invested capital this year + invested capital prior
year) / 2*
• NOPAT = Profit for the period +/- net financial income*
• Invested capital = Total assets - net cash and credits - deferred tax
* Measured over a 12-month period
Quarterly report 2023
Page 34
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