Adjusted EBIT guidance for 2023 as a consequence of global supply chain, development in organisation, investment in product development and new product extension of docking stations to cities
Contains inside information
Company announcement No. 1 2023
Donkey Republic adjusts EBIT guidance from 0-5% of revenue to negative EUR 2.0-1.8m in 2023 as a consequence of global supply chain challenges and market uncertainties, changes in the organisation by investments into the organisation and investments in product development for a larger addressable market in the future. Revenue guidance of EUR 13-15m for 2023 remains unchanged and corresponds to 30-67% growth compared to 2022 guidance of EUR 9-10m.
Donkey Republic is confirming its revenue guidance of EUR 13 to 15m, that was published in the company announcement no. 8-2022. The expected growth is driven by:
- Larger and renewed bike fleet: With 2022 bike deliveries expected to be finalized within Q1 2023, Donkey Republic will go with a larger and renewed fleet into the main season. A higher share of e-bikes compared to last year further positively impacts the revenue growth. Additional bikes are expected to be added to the fleet in the second half of 2023, so that the average fleet throughout the year is expected to be approximately 6k bikes stronger than in 2022.
- Continuous product improvement: Further product improvements and marketing campaigns will support the revenue growth.
- Subsidised MaaS operation: With the start of the subsidised operation in Kiel in January and the full year effect of the operations in Antwerp and Turku, a further significant revenue growth is expected to come from this segment.
In company announcement no. 8-2022, Donkey Republic also adjusted EBIT guidance for 2023 to 0-5% of revenue. The ongoing macroeconomic challenges made a revision of the assumptions, the guidance was based on, necessary and has now led to an updated EBIT outlook for 2023. This announcement of change for EBIT guidance for 2023 is entailing:
- Due to ongoing challenges within the global supply chain, Donkey Republic experiences further delays in bike deliveries and increased sourcing costs. The delayed roll out of the bike fleet is also moving ramp-up costs for its city operations into this year. All this is negatively impacting EBIT in 2023.
- Investments in the organisation by onboarding new and extended management competencies to drive future company, internationalisation and professionalisation of the company for future growth.
- Investments in the organisation for development of products and product extension for developing a future larger addressable market.
- A volatile and uncertain macroeconomic market environment did not allow Donkey Republic to grow its SaaS revenue stream as it anticipated for 2022. Also for 2023 the growth possibilities in that segment are limited. While the missing revenue can be compensated with increased growth of the Donkey Republic’s own fleet, especially within the subsidized MaaS segment, the missing earnings cannot. For the long term (2024 and beyond) the company does not see that impacting the overall business plan ambition, but it does have a negative impact on EBIT in 2023.
In Q3 2023 the company expects to deliver a positive EBIT.
2023 outlook
Revenue: EUR 13m to 15m
EBITDA: EUR 1.2m to 1.4m
EBIT: Negative EUR 2.0 to 1.8m
This guidance is based on the fact that the business continues to develop in line with current expectations, especially in regards to delivery of new bikes and ramp up of the subsidised operations.
Donkey Republic expects to release its 2022-Q4 KPI report on 11 January 2023.
Forward-looking statements
Statements about the future reflect Donkey Republic’s current expectations for future events and financial results. The nature of these statements is affected by risk and uncertainties. Therefore, the company’s actual results may differ from the guided figures.
