Highlights 2023
• Turnover increased by 3.2% organically to € 1,847.5 million, mainly as a result of strong performance in Smart Manufacturing systems
• Substantial increase of added value to 49.8%, underlining the strength of our businesses
• EBITA excluding one-off income and expenses increased 3.0% organically to € 237.0 million, in line with the outlook of € 230 - € 240 million
• ROS at 12.8%
• Adjusted net profit of € 130.5 million within outlook; EPS up +22.0%
• Order intake of € 1,834.9 million resulting in order book of € 970.1 million
• Continued focus on megatrends in automation, digitalization and electrification with significant strategic developments:
• Strategic investment program of € 200 million nearing completion
• Divestments resulted in a total one-off net profit contribution of € 54.8 million
• Good progress on ESG targets, improved ratings, SDGs at 70% of turnover
• Innovation at 16.1% of turnover
• High shareholder returns with completed share buyback programs of € 50 million and a proposed 2023 dividend of € 1.70 (2022: € 1.65)
• For 2024, we anticipate organic growth in turnover and EBITA, with a weak Q1 2024
Highlights fourth quarter 2023
• Turnover increased 1.2% organically to € 441.4 million, with a strong performance of Smart Manufacturing systems partly offset by continued destocking headwinds within Smart Vision and Smart Connectivity systems
• EBITA excluding one-off income and expenses increased 6.7% organically to € 62.9 million
• ROS increased to 14.3%
Alexander van der Lof, CEO of technology company TKH: "We were able to present a better than expected result in Q4 due to an excellent performance in the Smart Manufacturing segment, where we saw an acceleration of deliveries in the last few months of the year due to a catch up of delayed deliveries related to earlier supply chain constraints. ROS in the fourth quarter was a strong 14.3%, despite the headwinds from continued destocking of Smart Vision and Smart Connectivity systems.
The supply chain issues in the first half of the year, along with the necessary costs related to the roll-out of the strategic investment program, compounded by the underutilization within Smart Vision and Smart Connectivity systems due to destocking in the second half of the year, had a strong temporary negative effect on ROS. We decided to maintain the cost level and capacity in Smart Vision and Smart Connectivity systems at higher turnover levels in anticipation of market opportunities when the destocking effects are over.
With passion and dedication, we have focused on the execution of our strategy and achievement of our targets. We made good progress in implementing the strategy and associated action plans. We are accelerating our divestment opportunities to be able to increase our focus as the core technologies continue to gain traction. Many milestones were reached, related to market positioning, the R&D roadmap, and the realization of our € 200 million strategic investment program. Additionally, we invested in our software expertise, with a strong focus on Artificial Intelligence (AI), for which we established a hub in Amsterdam to centrally develop AI software solutions for the TKH group entities.
We continue to see great opportunities for further growth and we are on the right track with our investments in these exciting segments. We are confident about the anticipated recovery of Smart Vision, the rebounding of the energy market conditions in the Netherlands and a good order book for Subsea cables, but due to the headwinds, in combination with the costs and the strategic investments to capture future growth, the 17% ROS target might take longer to realize. We expect further growth of revenues and EBITA for 2024, and are well positioned to benefit from the great opportunities that will arise from the megatrends automation, digitalization, and electrification."
Press release:
https://www.tkhgroup.com/en/news/full-year-2023-and-q4-2023-results/
About TKH
TKH Group N.V. (TKH) is a leading technology company. We specialize in the creation of innovative, client-centric technology systems that drive success in automation, digitalization, and electrification. By integrating hardware, software, and customer-focused insight, our smart technologies provide unique answers to customers' challenges. In doing so, we work to make the world better by creating ever more efficient and more sustainable systems.
With more than 7,000 employees, TKH pursues sustainable growth in a culture of entrepreneurship, working closely with customers to create one-stop-shop, plug-and-play innovations combined with software for Smart Vision, Smart Manufacturing, and Smart Connectivity technology.
Listed on Euronext Amsterdam (TICKER: TWEKA), we operate globally and focus our growth across Europe, North America, and Asia.
For further information, please visit www.tkhgroup.com.
• Turnover increased by 3.2% organically to € 1,847.5 million, mainly as a result of strong performance in Smart Manufacturing systems
• Substantial increase of added value to 49.8%, underlining the strength of our businesses
• EBITA excluding one-off income and expenses increased 3.0% organically to € 237.0 million, in line with the outlook of € 230 - € 240 million
• ROS at 12.8%
• Adjusted net profit of € 130.5 million within outlook; EPS up +22.0%
• Order intake of € 1,834.9 million resulting in order book of € 970.1 million
• Continued focus on megatrends in automation, digitalization and electrification with significant strategic developments:
• Strategic investment program of € 200 million nearing completion
• Divestments resulted in a total one-off net profit contribution of € 54.8 million
• Good progress on ESG targets, improved ratings, SDGs at 70% of turnover
• Innovation at 16.1% of turnover
• High shareholder returns with completed share buyback programs of € 50 million and a proposed 2023 dividend of € 1.70 (2022: € 1.65)
• For 2024, we anticipate organic growth in turnover and EBITA, with a weak Q1 2024
Highlights fourth quarter 2023
• Turnover increased 1.2% organically to € 441.4 million, with a strong performance of Smart Manufacturing systems partly offset by continued destocking headwinds within Smart Vision and Smart Connectivity systems
• EBITA excluding one-off income and expenses increased 6.7% organically to € 62.9 million
• ROS increased to 14.3%
Alexander van der Lof, CEO of technology company TKH: "We were able to present a better than expected result in Q4 due to an excellent performance in the Smart Manufacturing segment, where we saw an acceleration of deliveries in the last few months of the year due to a catch up of delayed deliveries related to earlier supply chain constraints. ROS in the fourth quarter was a strong 14.3%, despite the headwinds from continued destocking of Smart Vision and Smart Connectivity systems.
The supply chain issues in the first half of the year, along with the necessary costs related to the roll-out of the strategic investment program, compounded by the underutilization within Smart Vision and Smart Connectivity systems due to destocking in the second half of the year, had a strong temporary negative effect on ROS. We decided to maintain the cost level and capacity in Smart Vision and Smart Connectivity systems at higher turnover levels in anticipation of market opportunities when the destocking effects are over.
With passion and dedication, we have focused on the execution of our strategy and achievement of our targets. We made good progress in implementing the strategy and associated action plans. We are accelerating our divestment opportunities to be able to increase our focus as the core technologies continue to gain traction. Many milestones were reached, related to market positioning, the R&D roadmap, and the realization of our € 200 million strategic investment program. Additionally, we invested in our software expertise, with a strong focus on Artificial Intelligence (AI), for which we established a hub in Amsterdam to centrally develop AI software solutions for the TKH group entities.
We continue to see great opportunities for further growth and we are on the right track with our investments in these exciting segments. We are confident about the anticipated recovery of Smart Vision, the rebounding of the energy market conditions in the Netherlands and a good order book for Subsea cables, but due to the headwinds, in combination with the costs and the strategic investments to capture future growth, the 17% ROS target might take longer to realize. We expect further growth of revenues and EBITA for 2024, and are well positioned to benefit from the great opportunities that will arise from the megatrends automation, digitalization, and electrification."
Press release:
https://www.tkhgroup.com/en/news/full-year-2023-and-q4-2023-results/
About TKH
TKH Group N.V. (TKH) is a leading technology company. We specialize in the creation of innovative, client-centric technology systems that drive success in automation, digitalization, and electrification. By integrating hardware, software, and customer-focused insight, our smart technologies provide unique answers to customers' challenges. In doing so, we work to make the world better by creating ever more efficient and more sustainable systems.
With more than 7,000 employees, TKH pursues sustainable growth in a culture of entrepreneurship, working closely with customers to create one-stop-shop, plug-and-play innovations combined with software for Smart Vision, Smart Manufacturing, and Smart Connectivity technology.
Listed on Euronext Amsterdam (TICKER: TWEKA), we operate globally and focus our growth across Europe, North America, and Asia.
For further information, please visit www.tkhgroup.com.
