IC Market Espresso 25 Aug 2023

Luka Koper Publishes H1 2023 Results

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.

Telekom Slovenije Publishes H1 2023 Results

In H1 2023, Telekom Slovenije recorded revenue growth of 6% YoY, an EBITDA increase of 4%, and a net profit of EUR 23.7m, an increase of 1% YoY.

Starting off with the sales revenue, it amounted to EUR 334.1m, representing an increase of 6% YoY or EUR 19.9m in absolute terms. Breaking this down further, revenues were up in the mobile segment of the end-user market primarily because of the increased number of subscribers and prepaid users at IPKO in Kosovo, which was the result of marketing activities to attract new customers. Higher revenues from mobile subscribers and revenues from mobile merchandise in Slovenia were also recorded, as well as higher revenues on the wholesale market. Furthermore, the Company recorded growth in the areas of financial services, eHealth, insurance services, and IT services and merchandise. In terms of subsidiaries, higher revenues were recorded across all of them.

Moving on to operating expenses, in total they amounted to EUR 301.3m, an increase of 6% YoY, or EUR 15.8m in absolute terms. The largest contribution came from higher costs of materials and energy at EUR 16m (+51% or + EUR 5.4m YoY), followed by higher costs of services at EUR 102.3m (+4%, or + EUR 3.7m YoY), higher COGS at EUR 43m (+7%, or + EUR 2.8m YoY), and finally, higher labour costs at EUR 55.2m (+4%, or + EUR 1.9m YoY).

Because of the faster revenue than OPEX growth, EBITDA amounted to EUR 117.2m, increasing by 4% YoY, or EUR 5m. This would also imply an EBITDA margin of 35.07%, a decrease of 0.63 p.p. YoY. In terms of the net financial result, it amounted to EUR -7.69m, mostly as a result of higher financial expenses, which increased by 102% YoY, or EUR 4.2m, and amounted to EUR 8.3m. On the other hand, the financial income decreased by 21% YoY, or EUR 172k, and amounted to EUR 641k. Finally, the net income amounted to EUR 23.4m, representing an increase of 1% YoY, mostly slowed down by the aforementioned higher financial expense. This would also imply a net income margin of 7.09%, a decrease of 0.35 p.p. YoY.

Telekom Slovenije key financials (H1 2023 vs. H1 2022, EURm)

Source: Telekom Slovenije, InterCapital Research

In terms of investments, Telekom Slovenije invested a total of EUR 83m in H1 2023, representing an increase of 8%, or EUR 5.95m YoY. The largest increase was in the Company’s direct operations in Slovenia, at EUR 62.3m, an increase of 31%, or EUR 14.6m YoY, followed by investments into other companies in Slovenia that are part of the Group, at EUR 14.2m, an increase of 148%, or EUR 8.5m YoY. On the other hand, investments into IPKO – Kosovo decreased by 49%, or EUR 12.3m YoY, to EUR 12.8m.

Banca Transilvania Proposes RON 1.13 DPS

At yesterday’s closing price, this would amount to 5.5% DY. If approved by the OGMS, the ex-date would be set for 20 October 2023.

Banca Transilvania has announced the distribution of profit for the year 2022 & the profit reserves related to previous years, in the total amount of RON 902.5m. This would amount to a gross dividend of RON 1.13 per share. At yesterday’s closing price, this would amount to a DY of 5.5%

The approval of the dividend distribution is to be decided during the General Meeting of Shareholders, which will be held on 29 September 2023. If approved, the ex-date would be set for 20 October 2023, while the payment date would be set for 6 November 2023.

To read more about this news, click here.

Upcoming Events – August 2023

Here you can find the dates for the upcoming events of the regional companies.

wdt_ID Date Ticker Announcement Country
34 30.8.2023 EL Electrica Q2 2023 Results Conference Call Romania
35 30.8.2023 ONE One United Properties Q2 2023 Results Conference Call Romania
38 31.8.2023 CICG Cinkarna Celje Q2 2023 Results Slovenia
39 31.8.2023 FP Fondul Proprietatea Q2 2023 Results, Conference Call Romania
40 31.8.2023 LKPG Luka Koper Dividend Payment date Slovenia
41 31.8.2023 ZVTG Triglav Q2 2023 Results Slovenia

Due to the nature of these events, they are subject to change (might be postponed or canceled).

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