MT Højgaard Group Half-Yearly Report 2023: The MT Højgaard Group saw a 24% revenue rise in the first half of 2023, reaching DKK 4.9 billion. Double-digit solid growth from its Danish business segments drove the boost. Despite this upturn, the Group’s operating profit before special items fell 40% to DKK 64 million. A major factor in the drop was MT Højgaard International’s DKK 83 million operational loss, resulting from write-downs on projects in Greenland and the Faroe Islands.
The Danish core business showed a more positive outlook, including MT Højgaard Danmark, Enemaerke & Petersen, and MT Højgaard Property Development. Operating profit rose 39% to DKK 147 million while operating margin rose from 2.9% to 3.2%. The financial position of MT Højgaard International has declined from a neutral DKK 0 in the first half of 2022 to a loss in the current reporting period.
The Group’s first-half earnings rose to DKK 43 million from DKK 34 million last year. This gain is due to positive adjustments from the expected earn-out payment from Ajos’s pavilion activities sale in 2021.
Operating activities generated DKK 160 million in cash flow, up DKK 276 million over the first half of 2022. The Group reduced its interest-bearing debt from DKK 872 million in the first half of 2022 to DKK 438 million this year.
Even though business divisions were cautious, order books rose in the first half of 2023. Their strategy sought profitable expansion in a setting of fierce pricing wars and more bidders for fewer projects.
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The first-half order intake was DKK 6.6 billion, up from DKK 4.8 billion last year. The order book grew 12% since the year began and 36% over the first half of 2022. Strategic construction tie-ups and joint ventures reinforce orders awarded but not contracted.
The Group is confident about the rest of the year due to a strong order book. They expect DKK 9.0-9.5 billion in revenue and operating profit before special items and DKK 200-225 million value adjustments. Despite increased revenue in the Danish core company, the overseas segment’s considerable losses are expected to outweigh these gains. In the first half of 2023, 95% of expected contract revenue was contracted.
CEO Henrik Mielke was divided about the results, complimenting the Danish core company for its growth and success despite tightening competition. The past year saw strong order intake, cash flows, and net interest-bearing debt reduction. Mielke expressed his unhappiness with overseas activities’ performance and emphasized the company’s commitment to methodically minimizing these losses.
CEO Henrik Mielke and CFO Rasmus Untidt will lead a teleconference on August 25, 2023, at 10 a.m. CEST to discuss this interim financial report. Participants can watch the teleconference live.