By the end of 9M 2023, Luka Koper recorded roughly the same revenue YoY, an EBITDA decrease of 15% YoY, and a net income of EUR 47.5m, a 20% decline YoY. At the same time, the Company published the 2023 performance estimate & 2024 plan, which we’ll detail in this blog.

Starting off with the revenue, Luka Koper recorded sales of EUR 233.9m during 9M 2023, an increase of 0.1% YoY, and 9.2% compared to what the Company planned for the period. Higher revenues were achieved due to the higher prices of transshipment services, which increased the maritime throughput of containers and cars, as well as the volume of container stuffing and unstuffing, together with higher revenue from additional services on goods. On the other hand, revenues from storage fees decreased by EUR 17.8m, due to the reduction of the retainment time of containers in the warehouse, as the situation in the global logistic market stabilized.

Maritime throughput in tonnes per cargo group (9M 2023 vs. 9M 2022)

Source: Luka Koper, InterCapital Research

In terms of maritime throughput, it amounted to 16.84m tonnes, a decrease of 3.6% YoY, and 3.5% compared to what was planned. Breaking this down by cargo groups, general cargoes recorded a 22% lower transshipment, amounting to 786.5k tonnes. This came mainly due to the lower throughput of steel products, due to the changed supply dynamics in the EU. Caoutchouc throughput was also lower. On the flip side, higher throughput of timber was recorded, as the trend of an increase in containerization of timber was also recorded. Moving on containers, in TEUs (twenty-foot equivalent unit, a measure of container size), containers recorded 4% higher numbers, amounting to 812k TEUs, while in tonnes, it recorded 0.4% higher numbers, amounting to 7.45m tonnes. Luka Koper notes that irregular arrivals of ships both on direct connection with the Far East and other Mediterranean ports continued in H1 2023, but the situation improved in Q3. Despite irregular arrivals, the shipment of containers from the terminal improved, so that the container terminal recorded lower occupancy YoY.

In terms of cars, in the number of vehicles, 22.2% higher numbers were recorded, amounting to 692.7k vehicles, while in tonnes, it recorded 19.8% higher levels, amounting to 1.18m tonnes. The Company recorded higher throughput both in exports, mainly from the Middle and Far East, as well as from imports, where the share of electric cars, mostly Chinese has been increasing significantly. Liquid cargoes meanwhile, recorded a slight 0.6% decrease to 3.39m tonnes, due to the decrease in petroleum derivatives turnover. Finally, dry and bulk cargoes decreased by 13% YoY and amounted to 4m tonnes, mainly due to lower throughput of soy, aluminum oxide, phosphates, and coal.

Moving on to operating expenses, it amounted to EUR 184.9m, an increase of 8.6% YoY. The largest increase was recorded by the cost of services, which grew by 14.4% YoY to EUR 57.4m. Within this category, the cost of port services increased due to a higher volume of business operations, as well as a higher volume of maintenance work and higher IT support and insurance costs. Employee expenses also grew, by 7.6% YoY to EUR 78.9m, due to a higher number of employees, an increase in payments for job performance, and salary adjustment due to inflation. The cost of material, on the other hand, decreased slightly, by 0.3% to EUR 16.7m, mainly as a result of the lower cost of motor fuel due to lower consumption and prices, while energy expenses increased due to higher electricity costs. All taken together, this led to an EBITDA of EUR 76.1m, a 15% decrease YoY, but a 51.6% increase as compared to what the Company planned. Net financial result meanwhile, increased by 41.5% YoY to EUR 4.03m, mainly due to higher financial income (EUR 5.06m, +60.7% YoY), outpacing expenses growth (EUR 1.03m, +244% YoY). As a result, the net income amounted to EUR 47.5m, a 19.8% decrease YoY, but an 89% increase as compared to the business plan for 9M.

Luka Koper key financials (9M 2023 vs. 9M 2022, EURm)

Source: Luka Koper, InterCapital Research

For investments, two major investments were completed in 9M 2023, namely the arrangement of stacking areas on landfill site 5A and the construction of new docks on reefer containers. In total, investments amounted to EUR 29.7m, a decrease of 21% YoY.

Luka Koper also released a performance estimate for FY 2023, as well as the forecast for 2024. The Company estimates the net sales of EUR 302.8m, down 3% YoY, and 4% compared to what was previously planned for FY 2023. In terms of EBITDA, it is estimated at EUR 82.3m, while the net profit is estimated at EUR 45.1m. Finally, investments are estimated at EUR 45.4m, which is 53% higher than what was achieved during 9M. For 2024, the Compans plans net sales of EUR 324.5m, which should end up 7% higher than the 2023 estimate. EBITDA is planned at EUR 83.7m, a 2% increase compared to the 2023 estimate, while the net profit is estimated at EUR 48m, a 7% increase compared to the 2023 estimate. For 2024, investments are expected at EUR 71.6m, a 57% increase YoY.

If you would like to read more about the 9M 2023 results, you can click here. And if you would like to review the 2023 and 2024 estimates, you can do that here.

Luka Koper key financials (2023 estimate, 2024 plan, EURm)

Source: Luka Koper, InterCapital Research