In Q1 2024, Luka Koper recorded a revenue decline of 0.9% YoY, an EBITDA decrease of 6%, and a net income of EUR 15.4m, a decline of 7% YoY.

During Q1 2024, Luka Koper recorded revenue of EUR 79.4m, representing a decrease of 1% YoY, and 4% as compared to what was planned. Inside the revenue, the Company notes higher revenues from increased services of stuffing and unstuffing of containers and other ancillary services on goods, while at the same time, with the reduction in retention time of containers and other goods in the warehouse, the revenue from storage fees decreased.

Looking at the operational side of the story, total maritime throughput amounted to 5.3m tonnes, representing a decrease of 9% compared to the 2024 plan, and 7% compared to Q1 2023. In terms of containers, this represented 256.2k TEUs, a decrease of 10% compared to the plan, and 8% YoY. Finally, car throughput amounted to 189.9k pieces, a decline of 14% compared to the plan, and 18% YoY. Luka Koper noted that the situation in the Middle East, especially in regards to the situation in the Red Sea has affected them adversely. The shipments that were supposed to arrive through this area have had to take the longer route around Africa, leading to longer transportation times, directly affecting the port.

Breaking the maritime throughput by cargo groups, containers, which make up app. 45% of the total maritime throughput, recorded 2.36m tonnes transported, a decline of 5% YoY. This was directly attributed to the situation in the Red Sea as there were significant delays in January 2024 at the terminal both on direct connections with the Far East as well as on connections with the Mediterranean ports. This situation did improve in March 2024, however.

Next up, we have dry and bulk cargoes, which accounted for 23% of the total at 1.2m tonnes transported, representing a decline of 18% YoY, mainly due to the lower throughput of coal. On the other hand, the throughput of fertilizers, wheat, and phosphates was higher. Liquid cargoes recorded a slight increase of 3% YoY to 1.13m tonnes transported.

Meanwhile, cars recorded 336.9k tonnes transported, an increase of 6% YoY, however in units, this was 18% lower YoY. The decrease came due to delays from ships relating to the Red Sea situation once more, but Luka Koper does note that the growth in the global economy was also slower during this period, leading to lower car sales. Finally, general cargoes recorded 238.3k tonnes transported, an increase of 10% YoY, mainly due to higher throughput of steel products and equipment, as well as higher throughput of timber.

Luka Koper maritime throughput breakdown (Q1 2024 vs. Q1 2023, tonnes)

Source: Luka Koper, InterCapital Research

Moving on, operating expenses amounted to EUR 62.7m, an increase of 2% YoY. An increase was recorded across all cost types except for the cost of material and other op. expenses, which declined by 23% and 2% YoY, respectively. Within the cost of material, which amounted to EUR 4.6m, the cost of spare parts decreased, as well as the cost of electricity and the cost of motor fuel. Other operating expenses were lower due to lower revaluation op. expenses.

On the other hand, the cost of services grew by 2% YoY to EUR 18.9m. This was due to the higher volume of maintenance works, the higher cost of IT support as well as higher insurance costs, while the cost of port services declined due to lower transshipment of cars. Furthermore, labour costs increased by 9% YoY to EUR 28.3m, due to a higher number of employees and adjustment of salaries for inflation.

As a result of these developments, EBITDA declined by 6% YoY to EUR 25.9m, implying an EBITDA margin of 32.6%, a decline of 1.83 p.p. YoY. Moving on, the net financial result amounted to EUR 926k, growing by almost 7.3x YoY, as a result of more than 3x higher financial income, while financial expenses grew by “only” 30% YoY. The higher financial income came from higher financial income from shares and interests in associated companies, as well as higher financial income from other investments, and higher interest income. Finally, net income amounted to EUR 15.4m, decreasing by 7% YoY, and implying a net income margin of 19.4%, a decline of 1.28 p.p. YoY.

Luka Koper key financials (Q1 2024 vs. Q1 2023, EURm)

Source: Luka Koper, InterCapital Research

In terms of investments, they amounted to EUR 11.1m in Q1, an increase of 24% compared to the 2024 plan, and 38% YoY. The Company noted that it continued its investment cycle, with continued construction of Berth 12 at Pier II, a shift of stacking blocks at the container terminal, and installation of the solar power plants.