In the first 9M of 2019, Intereuropa recorded an increase in sales of 1%, decrease in EBITDA of 5% and an increase in net profit of 2%.
In the first nine months of 2019, Intereuropa Group recorded EUR 120.2 million in sales revenue, noting an increase of 1% YoY and 6% decrease compared to the plan. The intercontinental transport segment lags most behind the planned figures, while sales revenue in the land transport and logistics solutions segments increased most relative to the same period last year. The highest growth in the land transport segment was recorded in groupage, while a decrease in sales revenue from last year’s figures was recorded in domestic transport, railway transport and customs services. In the land transport segment, EUR 63.9 million was generated, which accounts for 53% of the Group’s sales, and was up by 1% relative to the same period last year and 4% lower than planned. Intercontinental transport and Logistic solutions follow, accounting for 26% and 17% of the company’s revenues, respectively.
When observing the sales structure by country, the company has recorded the vast majority of their revenues in Slovenia (69%) and Croatia (15%). Bosnia and Herzegovina and Serbia follow with 4% and 3%, respectively.
Operating expenses witnessed a slight increase of 0.6%, amounting to EUR 115.5m. The increase could mostly be attributed to a rise in cost of goods materials and services (+1% YoY).
EBITDA amounted to EUR 10.3m, which is a decrease of 5% YoY and 2% lower than planned. This result puts the EBITDA margin at 8.6% (-0.3 p.p. YoY). The mentioned result was lower mostly due to higher costs of services (mostly impacted by costs of hired labour and student work) and labour costs. Labour costs were up by 2%, primarily due to growth in average labour costs per employee and the increased number of employees. Material costs were also higher due to a rise in energy prices. Meanwhile, operating profit amounted to EUR 5.37m, representing a decrease of 12% or EUR 0.7m.
Going further down the P&L, Intereuropa recorded a net financial loss of EUR -0.68m, which represents a decrease in loss of EUR 0.6m. Such an improvement came mostly on the back of higher finance income from interest from a court-brokered settlement and lower interest expense on loans received due to deleveraging and higher income from exchange rate differences.
In the first nine months of 2019, the company recorded a net profit of EUR 4.25m, showing a 2% increase.
It is important to note that the company announced that fraud was identified at the subsidiary Intereuropa, logističke usluge Zagreb. The report states that the scope of the fraud and its impact on financial statements cannot yet be assessed with certainty, but will have an adverse impact on the Group’s profit until the end of 2019.
Turning our attention to CAPEX, in the first 9M of 2019, the Group invested EUR 1.48m in fixed assets, a drop of 42% YoY. Of that amount, EUR 0.44m thousand was invested in property, while EUR 1.03m was invested in equipment and intangible assets. This puts the company at of 25% of the entire investment plan achieved.