In 1H of 2021, Intereuropa recorded an increase in sales of 15%, increase in EBITDA of 10% and an increase in net profit of 71%.
In the 1H of 2021, Intereuropa Group recorded EUR 84.7 million in sales revenue, noting an increase of 15% YoY. The intercontinental transport segment achieved strong results overshooting the planned figures by 21%, increasing the most relative to the same period last year. The highest growth in the land transport segment was recorded in domestic transport and customs services. In the land transport segment, EUR 42.9 million was generated, which accounts for 51% of the Group’s sales, and was up by 15% relative to the same period last year and 8% higher than planned. Intercontinental transport and Logistic solutions follow, accounting for 28% and 18% 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 (68%) and Croatia (16%). Bosnia and Herzegovina and Serbia follow with 5% and 3%, respectively.
Operating expenses witnessed increased slightly higher than sales by 16%, amounting to EUR 77.7m. The increase could mostly be attributed to a rise in cost of goods materials and services (+18% YoY).
EBITDA amounted to EUR 7.0m, which is an increase of 10% YoY and 18% higher than planned. This result puts the EBITDA margin at 8.3% (-0.3 p.p. YoY). The main reason for higher-than-planned EBITDA was the positive impact of higher sales revenue in the context of successful cost management. 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 3.7m, representing a surge of 41% or EUR 1.1m.
Going further down the P&L, Intereuropa recorded a net financial loss of EUR -0.28m, which represents a decrease in loss of EUR 0.4m. Such an improvement came mostly from revenues from participating interests in Group companies, which were not recorded during the same period in 2020..
In 1H of 2021, the company recorded a net profit of EUR 2.8m, showing a 71% increase.
Turning our attention to indebtedness, Intereuropa reduced their net debt by EUR 3m in 2021, to EUR 41.4m. On 31 January 2020, the Company successfully completed the refinancing of several loans arranged under the financial restructuring agreement concluded in 2012. The Group has taken an EUR 54.8m loan from syndicate of banks led by NLB d.d. The loan was concluded in two tranches, one with a maturity of seven years and the other with a maturity of four years. An annex to the loan agreement entered into force on 27 May 2020 as preparation for the expected deterioration in the Company’s liquidity position due to the outbreak of the coronavirus crisis. A one-year deferral of the payment of principal and interest, from 1 April 2020 to 31 March 2021 was agreed. The Group began repaying principal and interest on 1 April 2021 and has no overdue unpaid liabilities under loan agreements as at the reporting date.
When looking at investment in 1H 2021, the Group invested EUR 1.3m in fixed assets, which makes an increase of 113% YoY. Of that amount, EUR 0.7m was invested in property, while EUR 0.6m was invested in equipment and intangible assets. This puts the company at of 15% of the entire investment plan achieved as the Group plans to invest EUR 8.4m in 2021. The COVID-19 epidemic has had a significant impact, resulting in the postponement and delay of investments.
