Annual report 2019

DEIF A/S has published its financial statements for 2019 on 31 March. Revenue increased by 4% to DKK 567m and the operating profit (EBITDA) of DKK 75.5m is the best in the last 5 years. Profit after tax was DKK 13.1m against a loss of DKK 24.7m the year before

Toke Foss, CEO of DEIF A / S states:

It is satisfying that DEIF is back on the growth track after several difficult years. Our more than 4000 global customers have bought more of our products, and we have gained market share.

Sales into the field of green energy have grown, and DEIF is increasingly providing solutions for upgrading existing energy systems in all three business areas: Marine & Offshore, Land Power and Wind Power. Such upgrades have a very favorable CO2 handprint, whereby DEIF contributes in reducing global CO2 emissions – punching above our weight.

It is also satisfactory that DEIF achieved an operating profit of DKK 75.5m, corresponding to 13.3% of revenue. The profit (EBIT) of 5.2% of revenue was far better than the previous year, but our long-term ambition is a significantly higher profit margin. The fact that the profit is not higher is not least due to large depreciations. For several years, DEIF has invested heavily in new products that are now on the market and contribute to the growth. These investments are amortized over a shorter number of years – thereby affecting the result for 2019. We are delighted to have chosen this long-term approach, and we look forward to this being reflected positively in our results in the coming years.

The first quarter of this year has been positive, our production has run 100% and we have achieved several breakthroughs in the markets. DEIF is favored by a large market in China that seems to have come out well "on the other side" of Covid-19. Therefore, I have no doubt that under normal circumstances, DEIF would see a good increase in revenue and profit in 2020.

Unfortunately, the Covid-19 casts large shadows across the world economy. It is difficult to assess the importance to DEIF in the short term as large parts of the world are "shut down"; but because DEIF provides control solutions for critical infrastructure, including transportation, data centers and hospitals, our services will continue to be needed. In the longer term, it is our assessment that the pandemic will not have a greater negative impact on our markets. On the contrary, I hope that the economic recovery following the pandemic will focus on investments in the green energy conversion where DEIF can offer our solutions.