KK Wind Solutions doubled revenue in 2023
In 2023, KK Wind Solutions continued to consolidate and strengthen its position as a leading tier 1 supplier to the renewable energy industry. The year ended with a net loss due to costs and amortization related to acquired entities.
2023 Highlights
- Revenue increased by 113% from DKK 2,581m to DKK 5,486m, exceeding our expectations
- Order book grew 95% to DKK 3,450m
- Cash flow from operating activities improved from DKK 1.3m to DKK 1,304m in 2023
- Operating profit improved DKK 95m to approximately nil
- Net result of DKK -164m due to costs and amortization related to acquisitions
- Completion and integration of Vestas’ converter and controls business adding 600 new colleagues
- Announced the acquisition of Nissens Cooling Solutions
- Lost Time Frequency Rate* improved +30% and ended at 0.88, slightly below our target of 1.
In 2023, KK Wind Solutions grew the order book by 95% to DKK 3,450m and revenue by 113% to DKK 5,486m, exceeding expectations. The year ended with solid cash flow improvements, driven by the increase in cash flow from operating activities before financial items of DKK 1,304m. Operating profit increased by more than DKK 95m to approximately nil. While net profit was a loss after tax of DKK -164m for the year due to acquisitions.
The revenue increase in 2023 was partly driven by the strategic acquisition and integration of Vestas' converter and controls business. This move brought in over 600 experienced and skilled employees, further strengthening the company's position in the wind market.
“2023 was a transformational year for KK Wind Solutions. With the completion of two major acquisitions; the converter business from Vestas and Nissens Cooling Solutions, we expect to increase revenue to over DKK 7 billion in 2024 along with strengthening our proposition as a leading tier one supplier of critical electro mechanical systems. We will continue to benefit from strong organic growth as demand for wind and other renewables shows significant strength in the next decade. Furthermore, we will continue to build and diversify the company for the long term by investing in strategic acquisitions and R&D,” says Mauricio Quintana, CEO at KK Wind Solutions.
In November 2023, KK Wind Solutions announced the acquisition of Nissens Cooling Solutions from A.P. Moller Holding to strengthen its position as a strategic supplier of converter and cooling solutions in industries such as wind energy, PtX and off-highway vehicles. The acquisition will be integrated during 2024, with sites in the Czech Republic, China, Denmark, Slovakia and more than 800 employees. This brings the group's total headcount to 3,300 colleagues across 10 countries.
Outlook for 2024
In 2024, the company will continue to grow and further integrate the Vestas business unit and Nissens Cooling Solutions. Revenue for KK Wind Solutions is expected to land around DKK 7,000-7,500m. The profit outlook for 2024 will continue to be impacted by integration costs.
ESG report released
Today, KK Wind Solutions also released its 2023 ESG report. The report can be found at www.kkwindsolutions.com/about/sustainability.
About KK Wind Solutions
Building on more than 40 years of experience, KK Wind Solutions is a leading systems supplier to the renewable energy industry. Our capabilities span developing state-of-the-art technologies, high-quality lean manufacturing, and flexible aftermarket services. Today, we are a global and diverse team of more than 3,300 colleagues in 10 countries working toward delivering products and services that will enable a future powered by renewable energy.
Press contact
Birgitte Ladefoged
Chief HR Officer and Head of Communications
Phone: +45 25 26 47 14
Email: bilad@kkwindsolutions.com
Learn more about us: www.kkwindsolutions.com
Follow us on LinkedIn: www.linkedin.com/company/kk-wind-solutions
*Note: Lost Time Frequency Rate measures the number of lost-time injuries per million hours worked during the financial year.