Intereuropa FY 2020 Results

In 2020, Intereuropa reported a decrease in sales of 6%, EBITDA of 12% and net profit of 15%.

In 2020, Intereuropa recorded sales of EUR 150.7m which is a decrease of 6% YoY. Such a result exceeded the company’s expectations by 8% with sales above the planned figures in all three business lines, in absolute terms the highest sales revenue figures was realized in land transport. Despite the extremely adverse business conditions in all markets, the Group managed to ensure continuous logistical support to customers along the entire supply chain, both during the first and second wave of the epidemic. Sales were driven by land transport which is the biggest component of Group’s revenue. We note that the most significant decline in the sales revenue of the Group in 2020 was recorded by the parent company and the Montenegrin subsidiary.

EBITDA decreased by 12% on YoY basis but it is 21% over planned EBITDA. The decrease of EBITDA was expected due to decrease of sales as well as higher labour costs and average labour cost than in 2019. Still, it was positively impacted by lower other operating expenses in 2020 in conjunction with other operating revenue that increased by EUR 0.6m. It was mostly the result of higher revenues coming from the reversal of non-current provisions in the amount of EUR 0.3m.

Additionally, Intereuropa’s operating profit decreased by 23% to EUR 5.8m. In 2019 major one-time revenues from the repayment of disputed operating receivables occurred, which was not evidenced in 2020. Nevertheless, Intereuropa exceeded Management’s expectations by 120% as EBIT was planned at EUR 3.14m.

Going further down the P&L, Intereuropa’s bottom line decreased by 15% YoY. Such a result shows a slight deterioration of profit margin by 0.3 p.p. to 2.4%.

Turning our attention to indebtedness,  Intereuropa reduced their debt by EUR 10m in 2020, to EUR 44.4m. The reduction of debt improved their net debt to EBITDA ratio to 3.6x in 2020 (-7.3% YoY). The parent company concluded the annex of the loan with syndicate of banks in May 2020 in order to mitigate the effects of the COVID-19 epidemic and to strengthen the company’s liquidity position. The payment of the principal and interest for one year was deferred, so finance costs for interest in 2020 also decreased by EUR 1.0m or 54%. The investments of the Group were down 27% to EUR 2.1m. Of that amount, EUR 0.6m was invested in real estate and EUR 1.5m in equipment and intangible assets.

Category : Flash News

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