Dovre - Profitability relatively strong
Dovre’s Q1 profitability came in above our estimates despite some softness in top line attributable to Renewable Energy. Project Personnel and Consulting performed a bit better than we estimated, and new Norwegian legislation on temporary work seems to be having only limited effects on business.
- Dovre Q1 revenue declined by 4.3% y/y to EUR 45.8m, compared to our EUR 48.3m estimate. Project Personnel came in at EUR 24.8m vs our EUR 21.6m estimate, while Consulting amounted to EUR 5.1m, compared to our EUR 4.5m estimate. Renewable Energy was EUR 15.9m, compared to our EUR 22.2m estimate. Renewable Energy is seasonally driven, and the wind power construction market has been less active than last year.
- EBITDA landed at EUR 1.9m while we estimated EUR 1.7m. EBIT amounted to EUR 1.7m vs our EUR 1.5m estimate. Project Personnel EBIT was EUR 1.2m, compared to our EUR 1.0m estimate, while Consulting came in at EUR 0.6m vs our EUR 0.4m estimate. Renewable Energy landed at EUR 0.2m vs our EUR 0.4m estimate.
- Dovre guides revenue to improve from FY ’22 and EBIT to be about the same as last year (unchanged). The new Norwegian legislation on temporary work seems to be having only very limited negative effects on the group’s local businesses.