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No. 17 2022 Strong Q3 as basis for adjustment of 2022 guidance

Announcement 17 2022    ·    3. November, 2022

Q3 was characterised by improved earnings and strong organic growth. On that basis and our expectations to Q4, we adjust 2022 guidance to a revenue of DKK 13,700m and an EBITDA of DKK 1,170m up from a revenue of DKK 13,450m and an EBITDA of DKK 1,100m. The EBITDA guidance includes DKK 225m in one-off effects.

CEO Jens Andersen says:
"Q3 was another strong quarter delivering high organic growth and improved earnings. Our strategic focus area Climate & Energy supported the strong performance by delivering an organic growth of slightly more than 100% in Q3. We expect Climate & Energy to reach a 2022 revenue of approximately DKK 1.2bn with solid earnings.   

We have successfully diversified our business during the last years thereby making us less dependent on new construction. The annual revenue from project sales, which is mainly related to new construction, is expected to be around DKK 2bn with slightly lower earnings than average in our Installation segment.

Based on our strong Q3 performance and our Q4 expectations, we adjust 2022 guidance to a revenue of DKK 13,700m and an EBITDA of DKK 1,170m.”


Q3 key financial messages

  • Adjusted organic growth amounted to 14.0% up from 8.8% with Climate & Energy delivering adjusted organic growth of 103%.
  • EBITDA increased by DKK 64m to DKK 301m
  • One-off price effects resulted in an impact of approx. DKK 65m on gross profit compared to DKK 50m in Q3 2021.

Financial highlights (DKK million)
Q1-Q3 2022 Q1-Q3 2021
Revenue 3,266 2,872 10,179 8,974
EBITDA 301 237 849 652
Cash flow from operating activities -14 -38 -226 225
Financial ratios (%)        
Organic growth adj. for number of working days 14.0 8.8 13.3 5.4
EBITDA margin 9.2 8.3 8.3 7.3
Net working capital, end of period/revenue (LTM) 16.1 13.0 16.1 13.0
Gearing (NIBD/EBITDA), no. of times 1.1 0.5 1.1 0.5
Return on invested capital (ROIC) 25.3 23.6 25.3 23.6


Guidance 2022

 (DKK million) Adjusted guidance Latest guidance
Revenue 13,700 13,450
EBITDA 1,170 1,100

Revenue guidance

We now expect revenue at DKK 13,700m, corresponding to an organic growth of approx. 12%. The Better Business project is an integral part of our strategic focuses in the Core+ strategy and is expected to reduce revenue by DKK 200m compared to 2021. Adjusted for this, we expect organic growth of approx. 14%.

EBITDA guidance

We expect EBITDA to amount to DKK 1,170m, up by DKK 70m of which DKK 25m can be attributed to additional one-off price effects.

General assumption

The guidance for 2022 assumes that the Russian invasion of Ukraine, and sanctions imposed by the European Union and other international bodies, will not have any significant knock-on effects e.g. leading to a significant drop in market activities.


Audio webcast and teleconference today

The presentation of Quarterly Report Q3 2022 will be made in English on 3 November 2022 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at www.solar.eu. Participation will be possible via teleconference.

Teleconference call-in numbers:

DK: tel. +45 787 232 50
UK: tel. +44 333 300 9265
US: tel. +1 646 722 4957



CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
IR Director Dennis Callesen - tel. +45 29 92 18 11

Facts about Solar

Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.

We facilitate efficiency improvement and provide digital tools that turn our customers into winners. We drive the green transition and provide best in class solutions to ensure sustainable use of resources.

Solar Group is headquartered in Denmark, generated revenue of approx. DKK 12.4bn in 2021 and has approx. 2,900 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit www.solar.eu.


This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.



Dennis CallesenInvestor Relations Director