Annual Report 2023/24
28 November 2024 - 11:01AM
UK Regulatory
Annual Report 2023/24
Nørresundby, Denmark, 28 November 2024
Announcement no. 45/2024
Temporary slowdown but unchanged
potential for RTX
At the beginning of the year, we anticipated that demand in
2023/24 would not reach the record level of 2022/23, which was a
year positively influenced by market recovery after a period of
supply chain constraints and shortages of key components. As the
year progressed, it became evident that customers in both our
Enterprise and ProAudio segments continued to hold high levels of
inventory, resulting in lower-than-expected demand for our products
and services. Consequently, we adjusted our full-year financial
guidance in June 2024.
Financial highlights for
2023/24
- Revenue reached DKK 498 million
(outlook DKK 500-510 million)
- EBITDA reached DKK 3 million
(outlook DKK 0-10 million)
- EBIT reached DKK -34 million
(outlook DKK -40 to -30 million)
2023/24 was characterized by a lower demand than
expected, particularly in the Enterprise and ProAudio sectors, due
to high customer inventory levels and a shift back to shorter
ordering cycles. To bridge this temporary period with lower demand,
while customers reduce their inventory levels, RTX has taken steps
to reduce capacity costs. At the same time, we are carefully
balancing cost management with strategic efforts to drive future
revenue and diversify our customer portfolio.
We ended the fiscal year 2023/24 with a revenue
of DKK 498 million (DKK 501 million when adjusted for the impact of
USD exchange rate variations relative to guidance assumptions).
EBITDA reached DKK 3 million and EBIT DKK -34 million. Both revenue
and earnings were within the ranges of our adjusted guidance.
Although a lower revenue in 2023/24 was expected, we are
disappointed by the weak pick-up in demand in the second half of
the fiscal year. However, we are reassured that this is not due to
a loss of market share, but rather a result of changing market
dynamics throughout the value chain, right down to the
end-users.
Our products and solutions continue to set
industry standards with consistently positive feedback from
customers and partners. This is further supported by important
commercial achievements during the year. In our Enterprise segment,
we saw growth in solutions for the retail market, partly stemming
from the launch of a new product range targeting the retail market
by one customer. In the latter part of the year, we also saw
encouraging re-order patterns from a long-standing European
customer. In ProAudio, we expanded our partnership network with a
North American distributor, focusing on enabling professional audio
solutions through the sale of audio modules. The modular approach
offers customers cost-effective and short time to market, while
providing RTX with scalability. In Healthcare, we reached a
significant milestone by signing a strategic collaboration
agreement with a major global healthcare company to develop and
launch a new generation of wireless infrastructure solutions for
hospitals. Significant progress, including successful field tests
at a large US hospital chain, has been made on this important
agreement, supporting our long-term ambitions in the Healthcare
segment.
CEO Peter Røpke in a comment to the
annual report:
“The year did not turn out as expected as customers continued to
hold high levels of inventory in a market characterized by
uncertainty and lack of visibility. Nevertheless, we saw positive
revenue development quarter after quarter and the gross margin
remained stable despite lower sales thanks to cost control and
price increases. This is my last result announcement as CEO of RTX
as I will leave the company by the end of November after eight
fantastic years. It has been a pleasure working with so many
dedicated and talented people throughout the organization.”
Looking ahead
A return to what we initially saw as more 'normal' market dynamics
did not occur, and in the short term we are still impacted by high
stock levels at our customers. The industry as a whole is facing
significant short-term uncertainty, compounded by macro-economic
and geopolitical factors, which have resulted in an unprecedented
lack of visibility for both RTX and our customers. This lack of
visibility is reflected in our financial outlook for 2024/25 where
we expect revenue in the range of DKK 490-520 million with an
EBITDA of DKK 0-20 million and an EBIT of DKK -35 to -15
million.
The long-term potential of RTX remains
unchanged, as does our strategic direction. We continue to
leverage our wireless expertise to drive revenue as an ODM/OEM
supplier under long-term framework agreements with customers in the
Enterprise, ProAudio, and Healthcare segments, while advancing our
strategic shift towards a more scalable product- and solution-based
business model.
Our long-term ambition to reach total revenue of
DKK 1 billion and an EBITDA margin above 16% through growth in all
three business segments remains intact. However, we must recognize
that achieving these milestones in 2025/26, which was the original
aspiration, is no longer realistic. The current uncertainty and
lack of visibility prevents us from setting a new specific year for
achieving our ambition at this stage.
RTX A/S
PETER
RØPKE PETER
THOSTRUP
CEO
Chair
Investor and analysts
meeting
On Friday 29th November at 11.30 CET, RTX will present the
Annual Report in cooperation with HC Andersen Capital. Sign up on
https://www.inderes.dk/videos/rtx-praesentation-af-arsregnskabet-for-202324.
On Monday, 2 December 2024 at 10:50 CET, RTX
will hold a conference call for investors and analysts hosted by
Danske Bank. RTX Management is available for meetings with
investors and analysts in relation to the Annual Report. Meetings
can be booked via Danske Bank via e-mail to
lomo@danskebank.dk.
Enquiries and further
information:
The Annual Report 2023/24 can be found via:
https://www.rtx.dk/en/investors/downloads/financial-reports/
CFO Mille Tram Lux, Chair Peter Thostrup, Tel.
+45 96 32 23 00
RTX’s homepage: www.rtx.dk
- RTX Annual Report 2023-24
- RTX CA No 45-2024 - 28.11.24 - Annual Report 2023_24
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