Waberer’s International Nyrt reports its financial results for the three months and first three quarters that ended 30 September 2022.
Revenue increased by 18.1% in the third quarter of 2022 on a year-on-year basis and reached EUR 174.6m, while year-to-date Group level revenue reached EUR 506.7m which is a 15.1% increase compared to the same period in 2021. Quarterly revenue increase reflects 27.1% growth in the International Transportation Services (ITS) and 14.8% in the Regional Contract Logistics (RCL) segment. In comparison, the revenue of the Other segment decreased by 13% on a year-on-year basis caused by – similarly to the previous quarter – the depreciation of HUF compared to EUR.
Revenue increase in logistics-related segments is partly due to the more favourable service prices and the contract-based price correction effect of the fuel price increase. At the same time, the company is still very successful in reflecting the hectic changes in operating costs (energy, wages, spare parts costs, etc.) in its service prices.
Recurring EBIT reached EUR 9.7m in Q3 2022, a 46% improvement compared to Q3 2021 and the second-highest value since 2018. All three segments of the Group increased on a year-on-year basis during the quarter. As a result of a EUR 2.1m year-on-year improvement, the ITS segment reached EUR 3.5m quarterly EBIT, the RCL segment EBIT increased by EUR 0.4m to EUR 3.4m, while the Other segment reached EUR 2.8m EBIT, which is a EUR 0.6m improvement. Group-level EBIT in the first nine months of 2022 was EUR 24.5m.
Recurring Net income reached EUR 4.1m in the third quarter of 2022, which is a EUR 0.8m increase yearly. The profit-generating capability of the core operation was able to overcompensate the EUR 2.2m increase in financial costs (mostly non-realized, the non-cash financial loss generated by FX changes and the rise of interest costs). The recurring Net Income in the first nine months was EUR 8.4m.
Net financial indebtedness – due to cash-based investments (mostly fleet replacement), the relaunch of the fleet renewal program and some non-cash technical items (update of warehouse rental fee capitalization, cash collateral for bank guarantees and reallocation of financial investment in the Balance Sheet to Fixed Asset totalling EUR 17.8m) – increased by EUR 32.6m compared to September 2021 and reached EUR 144.6m. The net leverage ratio on 30 September 2021 increased to 1.8x LTM (Last twelve months) recurring EBITDA. The net indebtedness decreased by EUR 4.7m compared to the end of the previous quarter (30 June 2022).
Suppose there is no drastic deterioration in market conditions in the remaining two months. In that case, the annual EBIT – the indicator that best represents the company’s core business performance – will exceed the previously announced target, and over EUR 30m value is achievable.
However, the profit after tax is expected to be below last year’s level due to rising interest costs and the – mainly technical – impact of the EUR/HUF exchange rate change. The first signs of a decline in consumption in Hungary and Europe are already visible in the demand for logistics services in certain sectors (e.g., FMCG, food, electronics). Yet, other industries (mainly automotive) are currently able to compensate for this decline in demand.