Financials and outlook
Negative profit warning: Dovre Group Plc will lower its 2023 guidance for net sales and operating profit.
New guidance for 2023 (published on June 26, 2023): Dovre Group’s net sales in 2023 are expected to be in the range of 185 to 195 million euros and the operating profit (EBIT) is expected to be above 7 million euros.
Previous guidance for 2023 (published on April 27, 2023): Dovre Group´s net sales are expected to improve from 2022 and the operating profit (EBIT) is expected to be about the same as in 2022.
For clarification, Dovre’s net sales in 2022 were 203 million euros and operating profit was 8,5 million euros.
(Updated June 26, 2023)
SHORT-TERM RISKS AND UNCERTAINTIES
In the Project Personnel business area, the Group’s most significant risks include the cyclicality of the clients’ business. Market developments in Norway are particularly important for Project Personnel due to the business area’s strong position in the Norwegian market. In addition, expansion to new client segments requires expenditure and includes risks. The business area’s other challenges are maintaining its competitiveness and profitability. Project Personnel business is project-based by nature, thus adding an element of uncertainty to forecasting. From time to time, there might be a local dependence on one major project or client. Dovre Group is responsible for the work performed by its consultants. However, the company has no overall responsibility for project delivery.
In the Consulting business area, general economic uncertainty does not have as direct an impact on the demand for the Group’s services. This is mainly due to the fact that one of Group’s main clients, the Norwegian public sector, aims to invest counter-cyclically. Project delivery involves minor risks due to both clients and the Group’s own personnel, such as project delays or loss of key personnel.
In the Renewable Energy business area, Suvic has in its normal operations various contractual risks depending on the differences in scope of work for each. These risks are mitigated through performance and various guarantees and insurances.
Dovre Group holds a minority share in SaraRasa Bioindo Pte. Ltd. (Bioindo), a company producing pellets from wood residue. Bioindo’s production unit is located in Indonesia and is thus exposed to high country risk. Other significant risks include risks relating to commercial agreements, especially feedstock purchase and end-product sale agreements.
The Group’s reporting currency is euro. The Group’s most important functional currencies are the Norwegian crown, the Canadian dollar, the Singaporean dollar, and the US dollar. Although the Group’s sales and corresponding expenses are mainly in the same currency, currency fluctu- ations can affect the Group’s net sales and operating result. Foreign currency denominated assets and liabilities can also result in foreign exchange gains or losses.
(Updated February 24, 2022)
Dovre Group Plc reports on its financial performance in accordance with the International Reporting Standards (IFRS). The accounting principles are presented under the Group Financial Statements in the Annual Report.