In 9M of 2020, Intereuropa recorded a decrease in sales of 7%, decrease in EBITDA of 13% and a decrease in net profit of 41.6%.
In first 9M of 2020, Intereuropa Group recorded sales revenue of EUR 111.6m, representing a decrease of 7% YoY. The decrease could be mainly explained by the the COVID-19 epidemic, which had a negative impact on all products, in particular land transport. Planned values were exceeded most during the first three quarters of 2020 by the parent company in Slovenia, and the subsidiaries in Bosnia and Herzegovina, Croatia and Ukraine, while the company in Montenegro recorded the most significant lag behind planned sales.
In terms of sales by business line, land transport accounts for 51% which observed a 11% YoY decrease to EUR 57.18m. Next comes Intercontinental transport with a decrease of 6% YoY to EUR 29.3m (accounting for 26% of total sales). The aforementioned decreases were partially offset by an improved result in Logistics solutions which were up by 3% YoY to EUR 20.46m (accounting for 18%).
In terms of sales by country, companies in Slovenia together generated 66% of the Group’s sales revenue, observing a 10% decline in sales revenue YoY. Sales were also down in Croatia, Bosnia and Herzegovina, Montenegro and Kosovo, most notably in the land transport segment, while sales growth was seen in the logistics solutions segment in Slovenia, Kosovo and Bosnia and Herzegovina. Sales were up in the intercontinental transport segment in Serbia, Croatia, Bosnia and Herzegovina, Montenegro and North Macedonia.
Operating expenses reached as much as EUR 107.7m, representing a decrease of 6.2%. Such a decrease could mostly be attributed to a decrease in cost of goods, materials and services by EUR 6.75m. As a result, EBITDA reached EUR 9.49m, which was 26% higher than planned, but down 12% YoY. The main reason for higher-than-planned EBITDA was the positive impact of higher sales revenue than planned. Such a result puts EBITDA margin at 8.5%, representing an increase of 1.3 p.p. YoY. Meanwhile, operating profit reached EUR 3.9m, representing a decrease of 27.6% YoY. However the company notes that such a result is 104% higher than their plan.
Going further down the P&L, net profit in the first 9m amounted to EUR 2.4m, representing a decrease of 41.6%.
Turning our attention to CAPEX, the Group invested EUR 1.05m in fixed assets during the 9M of 2020, which is a decrease of 30% YoY. Of that, EUR 300k was invested in property, while EUR 746k was invested in equipment and intangible assets. The company notes that a total of 15% of the entire investment plan was achieved.