RTX current and historic financials and future outlook
Interim reports 2023-24
RTX experienced a strong orderbook for our products and services in 2022/23. The orderbook size was impacted by past years’ instability in global electronic supply, where lead times rapidly changed, first up to 18 months and then back to a normal level of 3 months. However, this has also resulted in high inventories at several of our larger customers.
The strong result for 2022/23 and the high inventory at our customers as well as the shorter lead time impact our expectations for 2023/24. For that reason, we expect 2023/24 revenue to be backloaded in the fiscal year and demand not to be at the same level as in 2022/23. Based on the above assumptions combined with the general macroeconomic uncertainty, the outlook for 2023/24 is a Revenue of DKK 580-630 million, EBITDA of DKK 45-60 million and EBIT DKK 5-20 million.
Dialogue with our customers regarding their medium- and long-term demand, along with our development pipeline of new products, confirms us in our strategic direction which remains unchanged. RTX expects that the slower demand forecasted for 2023/24 is a temporary supply chain adjustment until high inventories at our customers have normalized. Consequently, we maintain our long-term ambition to reach revenue above DKK 1 billion and EBITDA margin above 16% in 2025/26.
|580 to 630
|45 to 60
|5 to 20
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 > 1 bDKK in 2025/26
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 1 billion in the financial year 2025/26.
EBITDA margin >16% in 2025/26
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 an EBITDA margin above 16% in 2025/26.
The above statements on the Group’s future conditions, including in particular, future revenue and operating profit (EBITDA), reflect Management’s current outlook and carry some uncertainty. These statements can be affected by a number of risks and uncertainties, which mean that actual developments and results can be materially different from the expectations expressed directly or indirectly. These risks and uncertainties include, but are not limited to, general economic conditions and developments, changes in demand for RTX’s products and services, competition, technological changes, fluctuations in currencies, component availability and fluctuations in sub-contractor supplies as well as legislative and/or regulatory changes.