EBT guidance for 2024 as a result of updated strategic direction in Donkey Republic
Company Announcement No. 8-2023
This Company Announcement contains inside information
As a consequence of working on a revisement of the strategy from growth-driven towards consolidated growth at sustainable margins, Donkey Republic announces to aim at positive EBT by the end of 2024. A guided EBT range will be announced over the course of 2023.
Current guidance for 2023 and 2024 is maintained:
2023
Revenue: 13M-15M EUR
EBITDA: 1.2M-1.4M EUR
EBIT: Negative 2.0M-1.8M EUR
2024
Revenue 17-22M EUR
EBITDA: Positive
EBIT: 5%-10% of revenue
In the 2022 annual report published in company announcement no. 04-2023 , Donkey Republic announced that to continue investments into its growth strategy, further loans and a capital raise in 2023 were required.
- Donkey Republic aims at carrying out a private placement at market price raising gross proceeds of DKK 11.5M and expected completion by end of April 2023
- Donkey Republic is currently in advanced negotiations to renegotiate conditions of loan repayments that will free up liquidity in 2023 and 2024 to secure execution of the revised strategy.
In connection with the above items, Donkey Republic has updated its growth strategy as a consequence of changed market conditions for obtaining growth financing, including asset-backed financing. The core of the strategic revisement is a tune down of growth investments to consolidate core markets through better utilization of existing fleet and reduce HQ costs to fit the activities of the revised strategy.
The highlights of the revised strategy
- Focus on better utilization of existing fleet as growth investments into new bike orders and stations will be paused in 2023
- Calibrate growth towards sustainable margins with the revised strategy, resulting in a goal for positive EBT by the end of 2024
The guidance on positive EBT for 2024 is built on the following assumptions:
- Renegotiation of loan conditions completed
- Completion of the private placement
- Implementing revised growth ambition within the organization
- Existing guidance assumptions in the 2022 annual report apply
CONTACT INFORMATION
DonkeyRepublic Holding A/S
Skelbækgade 4, trappe B, 4. sal.
1717 København V
www.invest.donkey.bike
investor@donkeyrepublic.com
Subscribe to company announcement at:
https://invest.donkey.bike/donkey-republic-company-news/
Financial and Certified Adviser:
Clearwater International
Andreas Lauth Lauridsen
Dampfærgevej 8, 1. floor
DK-2100 Copenhagen
certified.adviser@cwicf.com
www.clearwaterinternational.com/dk
About Donkey Republic
Founded in 2014, Donkey Republic is a Danish purpose driven impact company active in the micro mobility industry. Donkey Republic provides a flexible, affordable and more sustainable way of transportation to the citizens by partnering with the cities.
Donkey Republic is a data driven technology company facilitating bike sharing, and we are able to provide cities and citizens a reliable bike sharing service. Sustainably at its core integrates with the city’s public transportation system, by pursuing innovation Donkey Republic develops end-to-end products and services that solve city and riders problems. Riders are able to enjoy a more convenient and high quality ride, with our bike and ebike fleet, designed for durability and optimal maintenance through our servicing software platform. This collaborative dedicated software solution together with our bikes, seeks to improve people's health & well-being, the environment, reducing traffic congestion across cities as well as public space optimisation.
Donkey Republic is a publicly traded company listed on the Nasdaq First North Growth Market. The company was listed in 2021 to onboard investors and support its growth and expansion into the European Market, and to continue securing its foothold and developing its market position in the European Micro mobility space. With thousands of Donkey bikes successfully implemented, Donkey Republic aims to grow its business and fulfill its vision of making urban city life quality better through responsible bike sharing.