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Regulatory press release

EBT guidance for 2024 as a result of updated strategic direction in Donkey Republic

Donkey Republic
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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
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