In Q1, the company recorded a 3% decrease in sales, a 3% decrease in EBITDA and a 36% decrease in net profit.
In Q1, Intereuropa recorded a 3% decrease in sales of EUR 38.4m, which is 7% below the planned level. The failure to achieve the planned target could mainly be attributed to the Covid-19 pandemic.
The company notes that reduced volume of imports from China was seen in the intercontinental transport segment as early as January, while all other business lines recorded a sharp fall in sales during the second half of March. The crisis is also expected to affect the operations of Group companies during the Q2. The exception is the air freight segment, which exceeded last year’s and planned results due to the organization of the charter transport of both goods and passengers.
When observing sales by business line, land transport which accounts for 52% of total sales recorded a 3% decrease. The lower sales results of the land transport segment relative to last year were primarily the result of a drop in revenues at key customers due to the consequences of the Covid-19 epidemic. Intercontinental transport which accounts for 27% of total sales recorded a 7% decrease. Meanwhile, Logistics solutions (17% of total sales) recorded a 2% increase, however a 3% decrease compared to the plan.
Market wise, Slovenia (67% of total sales) recorded an 8% drop, while Croatian market (15% of total sales) recorded a slight increase of 1%.
In Q1, operating expenses observed a decrease of 2.4% YoY, amounting to EUR 37.7m. Such a decrease could be mainly attributed to cost of goods, materials and services (-4%). As a result of the above, EBITDA amounted to EUR 3m, representing a decrease of 3%. However, such a figure is 10% higher compared to the plan. The main reasons for higher-than-planned EBITDA were the positive impact of lower labour costs due to a lower number of employees and the receipt of government assistance under the ZIUZEO. Such a result puts the EBITDA margin at 7.2% (flat YoY).
Going further down the P&L, Intereuropa recorded a net financial result of -0.46m compared to EUR – 0.36m. The was worse than planned mostly due to higher net FX loss due to the depreciation of the Ukrainian currency.
In Q1, The Group’s net profit amounted to EUR 0.5m, which was 26% lower than planned and a decrease of 36% YoY.
Plan for 2020
- Sales: EUR 170.7m, through growth in all business lines of the core activity
- EBITDA: EUR 13.0m
- EBIT: EUR 6.4m
- Investments: EUR 6.9m in property, plant and equipment and intangible assets, primarily in the upgrading and renovation of the warehousing infrastructure and warehouse equipment, in the upgrading of IT equipment and in intangible assets
