Annual Report 2024

March 06, 2025

The Schouw & Co. newsletter: the latest financial updates, sustainability matters and insights.

ANNUAL REPORT IS OUT
Schouw & Co. generates all-time high operating profit

In 2024, Schouw & Co. managed to withstand a turbulent environment and achieved all-time high EBITDA and cash flow from operations, despite a decline in revenue which was driven by a combination of reduced volumes in certain segments and lower prices of materials. At the same time, dept has been substantially reduced.

It has been a good and satisfactory year for Schouw & Co., where the conglomerate once again showed its strengths and proved its value through a resilient business model. The annual report now published shows a record high operating profit at DKK 2.9 billion and a cash flow on DKK 2.6 billion an increase of 44% from last year.

“The solid results are attributable to a conglomerate business model that has proven to be both value-creating and risk-mitigating. Our margins are resilient, and our geographical and industrial diversification with respect to suppliers, customers and markets puts the company in a strong position. Our businesses have a long tradition of integration and partnerships, and we continue to invest in long-term relations across the value chain”, says Jens Bjerg Sørensen, CEO of Schouw & Co.

Full-year consolidated revenue amounted to DKK 34,7 billion, a 7% decline compared to 2023, mainly driven by a combination of reduced volumes and lower prices of materials in GPV and BioMar, while the remaining businesses all reported revenue above or on a par with 2023.

Full-year EBITDA was up 3% relative to 2023 to DKK 2.9 billion. BioMar was the main contributor to the full-year improvement, but Borg Automotive, Fibertex Nonwovens and HydraSpecma also lifted their earnings.  Cash flow from operating activities amounted to DKK 2.6 billion, an increase of 44%.

Investigating investment possibilities

With global presence in over 35 countries and across industries, Schouw & Co. is well positioned towards risks and changes in global market conditions and escalating geopolitical tensions, underpinning the strength of Schouw & Co.'s platform.

“Our businesses are all well invested, but we continue to monitor opportunities and strategic moves. Schouw & Co. has shown itself as a steady force amid uncertainty and turbulence. We will unwaveringly focus on global opportunities and leverage the attractive risk profile made possible by our diversification model”, says Jens Bjerg Sørensen.

Looking ahead, 2025 is expected to be an eventful year, with focus on shareholder value. Schouw & Co. is currently investigating whether a separate listing of the largest portfolio business, BioMar would be value-creating for existing shareholders. Schouw & Co. wants to continue to be a majority shareholder in the event of a separate listing.

In 2025, Schouw & Co. expects to maintain activity on a par with the strong level of 2024 with potential for further earnings growth. Schouw & Co. projects full-year 2025 consolidated revenue in the DKK 33.4-35.9 billion range and earnings in the range of DKK 2,8-3,1 billion (EBITDA).

SUSTAINABILITY
Sustainability statement in the annual report

This year’s annual report marks the first integrated report in accordance with the European Sustainability Reporting Standards under the Corporate Sustainability Reporting Directive. In the sustainability statement of the annual report, Schouw & Co. addresses reports on social and environmental issues as well as how sustainability-related factors could impact Schouw & Co. both now and in the future.

Highlights include:

· 5% reduction in Scopes 1+2 GHG emissions

· Signing a 10-year power purchase agreement to secure renewable energy certificates for the portfolio businesses

· Reporting on consolidated Scope 3 emissions for the first time

· Undergone limited assurance

PORTFOLIO MANAGEMENT
Potential separate listing of BioMar

In late 2024, Schouw & Co. announced that we are investigating whether a potential separate listing of our largest portfolio business, BioMar, would be value-creating for our existing shareholders.

At Schouw & Co., we are committed to active and responsible long-term ownership, and we continue to see great potential in the development of BioMar. This is why we intend to remain the majority shareholder of BioMar after a potential separate listing. This would provide BioMar with the right platform to continue its growth trajectory and at the same time offer investors the opportunity to directly invest in the world’s third-largest company in the high-value aquaculture feed market.