In H1 2023, Luka Koper recorded revenue growth of 2% YoY, an EBITDA decrease of 15%, and a net profit of EUR 31.9m, a 23% decrease YoY.

In total, sales revenue amounted to EUR 158.9m, an increase of 2% YoY and 9% higher compared to what was planned. This was achieved despite the expected decrease in revenue from storage fees, which decreased by 20% YoY, due to the shortening of container retention time in warehouses. However, this came as a result of the normalization of the situation in the global logistics market. On the other hand, higher revenues were also recorded from the stuffing and unstuffing of containers. In terms of the maritime throughput, in total Luka Koper recorded 11.4m tonnes of it, representing a decrease of 3% both YoY and compared to what was planned.

Breaking the throughput down further by groups, general cargo throughput recorded a decrease of 26% YoY and amounted to 515.5k tons, under the influence of reduced throughput of steel products and caoutchouc, due to the greater containersation of the latter. On the other hand, a higher throughput of timber was recorded. The Company further notes that the trend of containerization of these goods has been increasing, which can be seen in the growth of additional services of container stuffing, among other things. Moving on, container throughput amounted to 5.03m tonnes, an increase of 1% YoY, and in terms of TEUs, this was 5% higher and amounted to 554.9k TEUs. Luka Koper notes that irregular arrivals of ships both on direct connections with the Far East and other Mediterranean ports continued in Q2 2023. Meanwhile, the maritime throughput of cars amounted to 768.4k tonnes, an increase of 20%, while in units this was 23% higher and amounted to 451.6k units. The Company recorded higher throughput in both export and import of cars. In import especially, the growth of electric vehicles, mostly Chinese has increased significantly. The throughput of liquid cargoes increased by 7% YoY and amounted to 2.26m tonnes, with growth across all commodity groups. Finally, dry and dry bulk cargoes decreased by 15% YoY, with the largest decrease in soy, aluminum oxide, phosphate, and coal commodities.

Maritime throughput in tonnes per cargo group (H1 2023 vs. H1 2022)

Source: Luka Koper, InterCapital Research

Moving on to OPEX, in total it amounted to EUR 123.2m, an increase of 13% YoY, with growth across all cost categories. The largest increase was recorded in employee benefit expenses, which increased by 16% YoY, or EUR 7.1m, and amounted to EUR 52.4m. This came as a result of a higher number of employees, higher payments for job performance, and inflation. Following them, we have the cost of services, which grew by 15% or EUR 4.9m YoY, and amounted to EUR 37.9m. This was mainly due to the increased volume of business operations, mainly due to the higher maritime transshipment of cars. The cost of materials increased as well, mainly due to the higher cost of energy stemming from higher consumption and higher cost of electricity. Finally, other op. expenses increased by 11%, or EUR 537.5k YoY, and amounted to EUR 5.27m, mainly due to higher compensation costs for the use of building land.

Because of the faster OPEX than revenue growth, EBITDA declined by 15% YoY, but increased by 48% compared to the plan, and amounted to EUR 53.8m. This would also imply an EBITDA margin of 33.87%, a decrease of 6.85 p.p. YoY. Finally, the net profit of the Company amounted to EUR 31.9m, a decrease of 22.9% YoY, which would also mean that the net profit margin decreased, declining by 6.64 p.p. and amounting to 20.13%.

Luka Koper key financials (H1 2023 vs. H1 2022, EURm)

Source: Luka Koper, InterCapital Research

In terms of investments, the Company invested a total of EUR 19.3m in H1 2023, a decrease of 40% YoY, and 29% compared to what was planned. The decrease as compared to what was planned came as a result of the occupation of storage areas, as well as delays in obtaining the appropriate approvals. These investments included the continued shift of stacking blocks at the Container terminal, construction of new connection points for reefer containers, and continued arrangements of the stacking areas in the landfill 5A area, among several others.

If you would like to read the entire H1 2023 report, click here.