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Inside information
Green Hydrogen Systems A/S announces adjusted and clarified guidance for 2024
Kolding, Denmark, January 17th, 2025
In connection with conclusion of the Q4 2024 financials, Green Hydrogen Systems A/S (“Green Hydrogen Systems” or the "Company") revises its EBITDA guidance for 2024 downward and clarifies its revenue and CAPEX guidance
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EBITDA Guidance:
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Excluding restructuring costs: Revised to DKK –260 to –275 million (previously DKK -220 to -260 million).
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Including restructuring costs: Revised to DKK –485 to –500 million (previously DKK –300 to –400 million).
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Revenue and CAPEX Guidance:
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Revenue: Clarified to DKK 130 to 140 million (previously DKK 105 to 145 million).
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CAPEX: Clarified to DKK 130 to 140 million (previously DKK 130 to 160 million).
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The adjustments to the EBITDA guidance excluding restructuring costs mainly stem from R&D costs incurred in Q4 2024. Due to the narrowing of the product focus, these costs cannot be capitalised to the same extent as before and have been expensed in Q4 2024. However, it should be noted that expensing the R&D costs does not affect the Company's cash position, as it is an accounting adjustment.
Regarding the adjustments to the EBITDA guidance including restructuring costs, the new management team, led by René Umlauft, who took over as CEO in November 2024, has undertaken to deliver on the combined cost-out and restructuring program and is performing a thorough streamlining of the company's operations. As part of the streamlining exercise, additional and higher-than-anticipated write-downs are necessary. Further, substantial restructuring costs have been expensed in 2024, which were previously expected to be expensed in 2025. Lastly, management has decided to initiate certain initiatives to secure faster implementation of the actions in the combined cost-out and restructuring program, resulting in additional one-off restructuring costs of DKK 5-10 million. It should be noted that only these additional one-off restructuring costs are impacting the cash position. Hence, the majority of the total additional costs in the combined cost-out and restructuring program are non-cash events, meaning they mainly involve accounting adjustments and periodisation rather than actual cash outflows.
Consequently, the one-off restructuring costs, initially estimated at DKK 100 to 150 million, are now expected to be in the range of DKK 215 to 230 million. However, the vast majority of these costs have been realised in 2024, and only limited costs are expected to impact the 2025 financials.