Schouw & Co. 2024 Report: Achievements and Future Outlook

Schouw & Co. Achievements in 2024

The annual report for Schouw & Co. provides a comprehensive look into their performance in 2024. Despite a 7% decline in revenue, resulting in DKK 34,666 million compared to DKK 37,210 million in 2023, the company managed to showcase resilience and adaptability. Schouw & Co. reported an increase in EBITDA to DKK 2,931 million, a pleasant growth of 3% from the previous year. Furthermore, their impressive cash flow from operating activities surged to DKK 2,553 million, marking a remarkable 44% increase from the DKK 1,777 million reported in 2023.

Commitment to Sustainability

Schouw & Co. also prioritized sustainability, achieving a 21% reduction in Scope 1 and 2 greenhouse gas emissions since 2020, alongside a notable 27% drop in the lost time injury frequency rate. These initiatives underline the company's commitment to environmentally responsible practices. The management has proposed to maintain the dividend at DKK 16 per share for the 2024 financial year, reinforcing their dedication to shareholder returns.

Positive Outlook for 2025

Looking ahead, Schouw & Co. aims to maintain robust activity levels in 2025, aligning with the strong performance of 2024. They project the full-year revenue to fall within the DKK 33.4-35.9 billion range, and earnings are estimated to hover between DKK 2,820-3,120 million in EBITDA. This outlook reflects confidence in their diverse portfolio and market adaptability.

Company Highlights for 2025

Each subsidiary under Schouw & Co. has its unique expectations for 2025:

• BioMar: Anticipates stable operations and revenue, alongside positive EBITDA growth, even with the market's fluctuating conditions.
• GPV: Currently undergoing restructuring due to soft demand, yet maintaining projected revenue similar to 2024, with EBITDA anticipated to remain stable.
• HydraSpecma: Despite uncertainties, expects steady revenue with increased year-on-year EBITDA.
• Borg Automotive: Sees growth potential despite challenges in demand.
• Fibertex Personal Care: Projects stable activity in Europe but continues to face tough competition in Asia.
• Fibertex Nonwovens: Predicts revenue growth due to increased U.S. production capacity.

Insights from Leadership

Jens Bjerg Sørensen, President of Schouw & Co., highlights the importance of diversification to mitigate risks in an unpredictable market. The leadership is pleased with how the company achieved its core objectives—maximizing operational profit and cash flow, attaining the highest levels ever recorded in their 147-year history. This performance is credited to their strategic business model, characterized by diversification across regions and industries.

Sørensen also shared the company's exploration of a potential separate listing for BioMar, their largest portfolio company, which would further enhance shareholder value. With around two decades of ownership, Schouw & Co. has seen BioMar thrive, presenting a robust growth trajectory in the aquaculture feed market.

Future Expectations

The company is committed to fostering active and responsible long-term ownership and continues to find opportunities for strategic development. Looking to 2025 and beyond, Schouw & Co. aims to persist in delivering solid profits and cash flow while monitoring the broader economic landscape.

In conclusion, Schouw & Co.'s resilient business model positions them favorably for future challenges and market opportunities. While the company retains focus on its operational efficiencies, it remains committed to sustainability and shareholder value. As 2025 approaches, Schouw & Co. looks forward to capitalizing on its diverse portfolio to sustain and enhance growth.

Frequently Asked Questions

What were Schouw & Co.'s key achievements in 2024?

In 2024, Schouw & Co. achieved a significant EBITDA growth, impressive cash flow, and a reduction in greenhouse gas emissions.

How does Schouw & Co. plan to sustain growth in 2025?

The company plans to maintain robust activity levels, project revenues within the defined range, and focus on strategic opportunities across its subsidiaries.

What is the proposal for dividends for the 2024 financial year?

They proposed to maintain the dividend at DKK 16 per share for the financial year 2024.

What challenges do the subsidiaries of Schouw & Co. face?

Subsidiaries face challenges such as fluctuating demand, price volatility in raw materials, and competitive pressure, especially in international markets.

What is the strategic importance of BioMar for Schouw & Co.?

BioMar is central to Schouw & Co.'s growth strategy, representing a significant segment of their operations and supporting their commitment to sustainable aquaculture.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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