RTX current and historic financials and future outlook
Annual and Interim reports 2021-22
The outlook for 2022/23 is based on a strong order book going into the year and on an expectation of a partial normalization of the global electronics component shortages during the year. The main uncertainty for the year is the impact of macroeconomic volatility and potential recessions on customer demand and inventory replenishment.
The outlook assumes that while the macroeconomic uncertainty for 2022/23 may have some impact on customer demand in the year, this impact is expected to be limited. It further assumes improved availability of components with a partial normalization of the global component shortages and that possible COVID-19 lockdowns do not have a material impact on demand or supply. Component and logistic costs are not expected to increase further and the level of spot buys for securing components is expected to decline. The revenue mix will continue to shift towards product sales which in turn impacts gross margin. The USD/DKK exchange rate is expected to be at the level from mid-November 2022. For a more complete list of assumptions, refer to pages 20-21 of the Annual Report 2021/22.
As opposed to recent years, the revenue and earnings distribution over 2022/23 is not expected to be backloaded (as the normalization of the component situation is expected to continue in the first part of 2022/23).
|DKK million||Result 2019/20||Result 2020/21||
|Outlook for 2022/23|
|Revenue||555.9||457.2||663.3||700 to 760|
|EBITDA||108.2||37.3||85.4||85 to 105|
|EBIT||83.6||6.1||45.6||45 to 65|
Statements on future conditions
The following statements on the Group's future conditions, including, in particular, future revenue and operating profit (EBITDA and EBIT), reflect Management's current outlook and carry some uncertainty. These statements can be affected by a number of risks and uncertainties, many of which are outside the control of RTX, which means that actual developments can be different from the indicated outlook. These risks and uncertainties include - but are not limited to - general business, economic and geopolitical conditions and developments, changes in demand, competition, technological changes, fluctuations in sub-contractor supplies, the availability and time of delivery of components, regulatory changes as well as foreign exchange and interest rate fluctuations.
Long Term Financial Ambitions
Revenue > 800 mDKK in 2023/24
Based on the strategy of deploying RTX’s “wireless wisdom” in selected B2B target markets for growth via recurring revenue, and based on execution of long-standing and newer framework agreements, it is the ambition of RTX to grow revenues organically to reach at least DKK 800 million in the financial year 2023/24.
EBITDA >145 mDKK in 2023/24
Given the long-term revenue growth ambitions and given the leverage effect of increased recurring revenue on the scalability of human resources and other costs, it is the ambition of RTX to reach EBITDA of at least DKK 145 million in 2023/24.
The long-term financial ambitions are based on constant currencies with the ambitions being especially sensitive to the USD/DKK exchange rate. They are also based on the current macroeconomic and political climate, where major developments may impact the ambitions. Specifically, it is expected that potential recessions do not have a large impact on customer demand in 2023/24 and that COVID-19 and the resulting global economic consequences will have no material effect on demand and supply in 2023/24. Further, it is expected that the global component shortages and supply chain and logistic impediments will normalize at least before 2023/24. The ambitions are also based on component costs returning to their long-term trend lines (i.e., that the increased costs seen on certain components normalize before 2023/24).