VIKING meeting 2025 goals sooner than expected

08 March 2024 – VIKING Life-Saving Equipment A/S delivered outstanding results across its product areas and markets in 2023. In terms of revenue and, in particular, earnings, the company has met the goals set out in its BP25 business plan much earlier than expected. Work on the next business plan, BP28, with new strategic objectives, is well advanced, and is due to be approved later this year. 

Net revenue increased for the second consecutive year by almost DKK 400 million to DKK 3.53 billion against DKK 3.14 billion in 2022. Pre-tax profit totalled DKK 436.2 million, up from DKK 330.8 million the year before.

“The annual result is remarkable because none of our product or market areas have developed negatively over the year, while the offshore segment has developed particularly strongly. The growing service business has with good reason been stealing the limelight for several years, but in 2023 product sales – on which everything else is based – developed even more impressively. We have seen high activity in all our business areas,” says Gert Lillebæk, CFO.

VIKING used to have excess production capacity within certain product categories, but order volumes for rescue boats are at an unprecedented high level, while our production of immersion suits and fire-fighting suits for the global market is also at an all-time high.

Investments maintaining momentum

High growth brings increased costs, but in 2023 costs have increased less than both revenue and the contribution margin, which is slightly up on the prior-year period.

“We intend to maintain momentum by investing in the service business, in production and in product development. Within services, the goal is to offer a full scope service at a growing number of our service stations so that we cover all service areas, in particular the servicing of lifeboats and marine firefighting equipment,” says Gert Lillebæk, and continues:

“We’re also investing in products and concepts to meet the needs of our customers for solutions that make operational sense and reduce the complexity of their business.”

The investments in service stations and in new production facilities in Greece and Norway will increase costs in the coming financial year, but are considered an investment in future earnings. With a moderate outlook for revenue growth in 2024, the company is budgeting with a marginally improved bottom line.

World conflicts causing uncertainty

Geopolitical tensions continue to impact the supply chains that VIKING relies on for its raw materials and for being able to deliver its finished products on time. The political turmoil in the Red Sea near the Suez Canal may delay goods and increase costs if shipping companies choose to route their ships south of Africa.

“We’re feeling the knock-on effects of general global unrest and uncertainties about where the next conflict might flare up. We must remain agile and responsive to changing circumstances,” says Gert Lillebæk.

At the end of 2023, VIKING’s extensive service network covered a total of 279 authorised service stations worldwide, and the company’s global presence includes 36 of its own foreign subsidiaries represented in 79 locations. The investment in several full scope service stations is one of the reasons why the number of full-time employees increased by more than 200 to 3,294.

And VIKING’s employees are thriving. The annual job satisfaction survey shows record high satisfaction.

CEO’s death a big loss

VIKING was deeply saddened by the loss of Henrik Uhd Christensen, its CEO since 2010, who passed away on 17 January 2024 after a brief illness.

“I’m so sorry that Henrik was unable to communicate the results of an amazing year, which he impacted greatly through his skilled leadership. He repeatedly said that he wanted to hand over VIKING in a better shape than when he was appointed CEO. And he certainly did,” says Gert Lillebæk.

Sustainability requirements increasingly clear

Concurrently with the annual report, VIKING is publishing its annual ESG report, which describes the company’s environmental, social and governance efforts. The sustainability agenda and living up to its social responsibilities globally are a natural extension of VIKING’s values. Customers and business partners are increasingly taking a stance on the topic and on what they demand of their suppliers. In the offshore area, for example, the focus is increasingly on the electric boats that the company manufactures. Here, the main objective is to be carbon-neutral by 2030.

Key figures 2023:

About VIKING

VIKING Life-Saving Equipment A/S is the global market leader in maritime and offshore safety solutions. The company supplies and services safety and fire-fighting equipment for passenger and cargo ships, offshore installations, fishing vessels, navies, helicopter services, fire departments and leisure yachts worldwide.

VIKING’s products protect passengers and crew on many of the world’s largest cruise liners and cargo ships, as well as workers on the world’s most advanced offshore platforms. VIKING also ensures safety and regulatory compliance on board at all times, enabling shipowners and owners/operators of offshore installations to focus on their business.

VIKING is a privately owned company which was founded in 1960. In 2018, VIKING acquired the Norwegian company Norsafe, whose lifeboats and rescue boats have been in use around the world since 1904. In 2019, VIKING acquired Drew Marine’s FSR division, one of the world’s three largest providers of marine fire services.

VIKING’s headquarters are in Esbjerg, Denmark, and its products are manufactured in Denmark, Norway, Bulgaria, Greece, China and Thailand.