Things are going really well for the Danish cable manufacturer NKT. The company has adjusted its expectations for the annual result several times in the past year, and now the final 2023 accounts have been presented. It shows a profit of 124.3 million euros. That is almost exactly twice as much profit as the year before.
In terms of operations, NKT has set a record, landing a profit of 254.6 million euros EBITDA. This comes from a turnover of 19.27 billion euros in "standard metal prices", which is the unit NKT describes the turnover with, which corresponds to an organic growth of 36 percent compared to 2022. This is stated by NKT in a statement.
- 2023 was a successful year for NKT with an organic growth in turnover of 36 percent and the highest annual operational EBITDA in the company's history. Demand for high-voltage cables was higher than ever before, leading to a record high order intake. This brought our high-voltage order backlog to EUR 10.8 billion, and we launched an investment program of approximately EUR 1 billion to support future growth, says Claes Westerlind, CEO of NKT, on the development in 2023.
Growth was mainly driven by strong growth in the "Solutions and Applications" business line. In "Solutions", NKT achieved organic growth of 59 percent, but organic growth in "Applications" was 15 percent, the company said.
In addition, 2023 also saw a record high annual order intake of seven billion. euros in 2022, which was driven by projects from all over Europe, primarily based on DC technology.
Only in "Service & Accessories" was there bad news as this unit delivered negative organic growth of two percent.
"The development reflected limited tasks within offshore repairs in the Service business, but positive development within Accessories", NKT informs.
Continued expectations for growth
NKT expects that the good times will continue in 2024. Here, the company expects both growth in revenue and operating profit.
Revenue (in standard metal prices) is expected to be approximately 2.21-2.36 billion euros and operational EBITDA is expected to be approximately 285-335 million. euros.
- We enter 2024 with a robust financial position, which forms the basis for further improvements in our financial key figures, says Claes Westerlind
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