Q1 2024 INTERIM REPORT: ON TRACK TO DELIVER ON OUTLOOK
In This Article:
ANNOUNCEMENT NO. 35/2024
Q1 2024
-
Revenue up 11% to DKK 7.0bn
-
EBIT reduced 45% to DKK 200m
-
Adjusted free cash flow of DKK -327m
-
CO2 ferry emission intensity lowered 3%
OUTLOOK 2024
-
EBIT of DKK 2.0-2.4bn
-
Revenue growth of 8-11%
-
Adjusted free cash flow of around DKK 1.5bn
“While we are on track to deliver on our outlook, we continue to focus on improving profit through operational efficiencies across our network,” says Torben Carlsen, CEO.
| DKK m | Q1 | Q1 | Change, % | LTM | LTM | Change, % | Full-year 2023 |
|
|
|
|
|
|
|
|
|
| Revenue | 7,011 | 6,341 | 11 | 27,975 | 27,808 | 1 | 27,304 |
| EBITDA | 957 | 972 | -2 | 4,875 | 5,105 | -5 | 4,890 |
| EBIT | 200 | 363 | -45 | 2,163 | 2,475 | -13 | 2,326 |
| Adjusted free cash flow | - 327 | 258 | - | 2,188 | 1,586 | - | 2,773 |
| ROIC, % | - | - | - | 6.9 | 9.2 | - | 7.6 |
| Financial leverage, times | - | - | - | 3.2 | 3.0 | - | 2.9 |
CEO’s comments
2024 is the first year of our new strategy Moving Together Towards 2030 focused on unlocking the value of our expanded network through organic growth and transitioning to become a greener company.
The expansion of our network to high-growth markets was fulfilled in April with the agreement to acquire the international transport network of Ekol Logistics. The transaction is expected to close in Q4 2024. The newly acquired ferry routes on the Strait of Gibraltar were off to a good start.
The network is in place to support our focus on organic growth. A high priority is also to improve earnings for activities that currently face market headwinds such as the Baltic Sea and Channel ferry networks as well parts of our Cold Chain logistics activities.
We are moving to green and ordered another 100 e-trucks earlier this year underlining our ambition to decarbonise land transport. The short-term decarbonisation of our ferry activities is on target, and in parallel we are laying the groundwork to achieve our ambition of having six green ferries on the water by the end of 2030.
Q1 result ahead of expectations
As foreseen the current market environment remains mixed. We saw a higher than expected pick-up in ferry volumes across most of the network in Q1 while our land transport network mostly faced flat or lower volumes. Persistent overcapacity enhanced pricing pressure in certain market areas.
The result for Q1 2024 was nevertheless ahead of our expectations for the quarter driven by the Ferry Division.
Capital distribution and leverage
We are committed to returning excess capital to shareholders and besides the dividend paid in March 2024, our share buyback program has year-to-date purchased shares for more than DKK 100m.
Our financial leverage is expected to decrease in the coming quarters ahead of the expected closing of the acquisition of Ekol Logistics transport network in Q4.