In Q1 2024, Atlantska Plovidba recorded revenue growth of 13% YoY, an EBITDA increase of 53%, and a net income of EUR 2.23m (Q1 2023: EUR 203k).

Last week, Atlantska Plovidba published its Q1 2024 results, and in this overview, we’re bringing you the highlights. Starting with the revenue, it amounted to EUR 12m, growing by 13% YoY. As a dry bulk shipping company, this was of course influenced by the market dynamics during the quarter.

Atlantska Plovidba transported 1.09m tonnes of dry bulk cargo during this period, representing a decrease of 4% YoY. Breaking this down into cargo types, it transported 717k tonnes of coal, an increase of 77.2% YoY, 33.9k tonnes of grain, a decrease of 77.3% YoY, 282.8k tonnes of minor bulk, a decrease of 16% YoY, and 55.9k tonnes of iron ore, a decrease of 76.6% YoY. There are several interesting tidbits to be seen here. While the Company transports cargo across the world on different charters/routes, several changes in cargo types can be linked to macroeconomic developments. For example, the higher demand for coal is in line with the higher energy needs in Europe and Asia, especially China. For Europe, this could be directly linked to the reduced supply of gas from Russia following the war in Ukraine and the sanctions on the country. Grain transport was also reduced, which could indicate that supply & demand of this commodity have largely stabilized after a period of uncertainty following the start of the war, as Russia & Ukraine as amongst the largest producers in the world. Lastly, reduced iron ore demand could also be linked to reduced demand from China, as the country’s economy has been under a lot of pressure recently, especially its real estate sector which accounts for app. 1/3 of the GDP.

Coming back to Atlantska Plovidba, this transport was achieved across a fleet of 11 ships, 4 of which were in the Panamax category, 4 in the Supramax, 2 in the Handy category, and 1 in the Kamsarmax category. The average daily rate of transport amounted to USD 12k, a reduction of 11% YoY. Fleet utilization rate meanwhile, stood at 94.7%, a reduction of app. 4.2 p.p. YoY.

Moving further down the P&L, OPEX saw a slight 2% reduction to EUR 9.9m in Q1, mainly as a result of lower material expenses, while employee expenses increased slightly. As a result of the revenue growth & OPEX reduction, EBITDA experienced a significant 53% improvement YoY and amounted to EUR 6.7m. This would also imply an EBITDA margin of 56%, an increase of 14.5 p.p. YoY.

Meanwhile, the net financial result amounted to EUR -1.8m (Q1 2023: EUR -1.58m), mainly as a result of higher financial expenses due to higher interest rates. Finally, net income amounted to EUR 2.2m, increasing by almost 10x YoY. This would also mean that the net income margin improved significantly, from 1.9% to 18.6%, an increase of 16.7 p.p. YoY.

Atlantska Plovidba key financials (Q1 2024 vs. Q1 2023, EURm)

Source: Atlantska Plovidba, InterCapital Research

In Q1 2024, Kraš recorded revenue growth of 18% YoY, an EBITDA increase of 308%, and a net income of EUR 1.45m, an increase of 154% YoY.

Starting off with the revenue, Kraš recorded an increase of 18% YoY, amounting to EUR 43m. Of this, revenue on the domestic market amounted to EUR 26.7m, an increase of 26.4% YoY, while revenue on the international market amounted to EUR 16.4m, an increase of 5.6% YoY. The total volume of sales amounted to 8.96k tonnes, an increase of 10% YoY. Of this, volume sales on the domestic market increased by 8.8% YoY, while on the foreign market, they grew by 11% YoY.

Moving on to operating expenses, they amounted to EUR 42.1m, growing by 15% YoY. This came as a result of higher material expenses (+9% YoY, to EUR 28.9m), which themselves increased due to higher cost of commodities and materials, as well as higher COGS. Employee expenses also grew, by 20% YoY to EUR 8.9m, as a result of wage inflation. Lastly, Kraš also recorded a change in the value of inventories, which is a negative line in the OPEX (and as such it reduces OPEX), and this amounted to EUR 147k, a reduction of 90% YoY.

Due to the faster revenue than OPEX growth, EBITDA amounted to EUR 3.95m, an increase of 30% YoY. This would also imply an EBITDA margin of 9.2%, an increase of 0.9 p.p. YoY. In terms of the net financial result, it was positive at EUR 351k (Q1 2023: EUR -93k), as a result of higher financial income (EUR 419.6k, +354% YoY), which itself came as a result of higher fin. income from investments and loans, while financial expenses decreased (EUR 68.4k, -63% YoY), as a result of lower FX differences.

Because of all of this, net income grew by 154% YoY to EUR 1.45m, implying a net income margin of 3.4%, an increase of 1.82 p.p. YoY.

Kraš key financials (Q1 2024 vs. Q1 2023, EURm)

Source: Kraš, InterCapital Research