Kamstrup A/S (Koncern)

Management’s review

Annual resultRevenue for 2023 was DKK 3,604 million compared to DKK 2,800 million in 2022. Earnings before tax 2023 ended at DKK 514 million compared to DKK 308 million in 2022. Revenue for 2023 thus ends within the expected range of DKK 3.5 – 4.0 billion, whereas earnings before tax slightly exceed expected range of DKK 350 - 450 million. 2023 financial result was impacted by multiple factors, of which selected highlights are described below.Driven by the component shortage in 2022, Kamstrup entered 2023 with an order book above normal levels resulting in the first half of 2023 delivering extraordinarily high revenue. While the initial months reflected a positive post-COVID impact, the latter half of the year saw a flattening as the year 2023 also presented challenges for Kamstrup and the industry. The global economy continued to recover from the aftermath of the COVID-19 pandemic, impacting our operations both directly through cost inflation and indirectly through our customers and supplier behavior. In 2022, selected customers placed their orders earlier to counter COVID-related disruptions and as a result carried excess inventory into 2023, coupled with increased costs attributed to inflation and elevated interest rates which combined postponed ordering in large parts of the year.In response to a year full of uncertainties, we are pleased to see that efforts in 2023 resulted in record-high manufacturing throughput, improvement on our robust delivery performance to our customers, and getting back on a satisfying level to maintain a balanced approach to capacity and cost in sync with industry activity levels.At Kamstrup a large part of the revenue is being reinvested into Research & Development on an ongoing basis and in 2023 this remained a cornerstone for resource allocations. Our people remain the main asset of Kamstrup, and in 2023 our number of employees grew by more than 10%.In 2023, Kamstrup completed setup of a new factory in the US, a site with is fully operational in February 2024. This milestone marks our largest capacity expansion outside Denmark and confirms our commitment to building the North American market.Overall, the business performance and associated results for 2023 are satisfying, particularly considering the global economic instability.