GreenMobility: 2024 guidance reiterates the promise of profitability

This morning, GreenMobility released it full-year 2023 results, which not surprisingly was influenced by the major strategy changes during 2023. The company now focused on the Danish market after closing down foreign operations. The closed down operations are handled as discontinued operations.

In 2023, GreenMobility realized a full year revenue of DKK 94.6m, corresponding to a growth rate of 25% compared to 2022 based on the continuing business (latest adjusted guidance was DKK 93-98m).  Result for the year ended at DKK -50m compared to DKK -38m restated on the continuing business (latest guidance was between DKK -51m and -46m).

The cash flows from its continuing operations was positive of DKK 2.7m, which was its first positive operational cash flow on the continuing business in its history. The cash flows from discontinued operations was DKK -16.8m. The cash and cash equivalents was DKK 36.2m by the end of December 2023.  

In the light of the strategy of moving cars to the Copenhagen market, it is interesting to see that the average monthly revenue per car only fell slightly in 2023 despite the fleet being expanded by 18%. This is done in environment with a a large competitor which now has shut down its operations in Copenhagen. Customers grew 22% to 275t by the end of 2023. 

The 2024 guidance is in line with the ambitions stated together with the strategy change of being profitable. The revenue in 2024 is expected to be in the range DKK 115-125m (52-66% growth compared to the Danish market alone and 22-32% compared to the total revenue). Profit before tax is expected to be in the range of DKK 0-10m. 

GreenMobility also states ambitions of repeating the positive cash flow on an operational level in the continuing business. 

In the report, the company gives some interesting insights into its future operational model, as the company's fleet management will move from a asset heavy to an asset light model.

With the sole focus in the short to medium term on the Danish market (especially the Copenhagen market), GreenMobility also gives some insights into the potential size of this market. If it should evolve within market trends, 2t or more cars should be possible (current fleet is expected to reach 1t cars in the short term). The company also indicates that 1t cars will generate an operational margin of DKK 24m per year.

Tomorrow, 15 March at 13:00, the management of GreenMobility will present the 2023 results, dive into the 2024 guidance, and give insights about the strategy for the coming years. Sign up at the following link and ask questions beforehand or during the event: https://www.inderes.dk/videos/greenmobility-presentation-of-annual-report-2023

Dislclaimer: HC Andersen Capital receives payment for a Digital IR/Corporate Visibility subscription agreement. CEO of HC Andersen Capital, Tue Østergaard, owns shares and is the Chairman of the Board of GreenMobility A/S. /Michael Friis, 13:29, 14 March 2024.