Jetpak Top Holding AB (publ):Year-end report 1 January – 31 December 2023

Financial highlights 1 October – 31 December 2023
 

• Total revenue decreased by -7,4 % to 297 121 (320 778) TSEK
• Organic growth amounted to -12,6 % (6,4 %)
• Gross margin amounted to 30,1 % (32,3 %)
• Adjusted EBITA amounted to 33 045 (29 979) TSEK
• Operating profit amounted to 31 432 (29 131) TSEK
• Net income amounted to 24 881 (21 570) TSEK
• Earnings per share, before and after dilution, amounted to 2,04 (1,77) SEK
• Cash flow from operations amounted to 40 915 (46 453) TSEK
• Cash and cash equivalents amounted to 227 239 (178 646) TSEK
• Net debt in relation to adjusted EBITDA R12: -0,1 (0,2)
• The board proposes no dividend for the financial year 2023
   

Business highlights
 

BudAB was acquired in the beginning of the fourth quarter of 2023

Kvalitetstransport A/S was acquired in December with access from January 2024

 

Financial highlights 1 January – 31 December 2023
 

• Total revenue decreased by -5,5 % to 1 183 714 (1 253 147) TSEK
• Organic growth amounted to -9,1 % (11,4 %)
• Gross margin amounted to 30,6 % (31,3 %)
• Adjusted EBITA amounted to 121 561 (125 602) TSEK
• Impairment loss amounted to -51 705 (-) TSEK
• Operating profit amounted to 64 193 (122 215) TSEK
• Net income amounted to 39 379 (86 922) TSEK
• Earnings per share, before and after dilution, amounted to 3,23 (7,13) SEK
• Cash flow from operations amounted to 133 795 (127 033) TSEK

The comparison figures within parentheses refer to the corresponding period last year.
 

CEO comments

During the fourth quarter our main markets were characterized by a continued lower demand and soft freight volumes, which remained a challenge for most players in our industry and facilitated a continued pricing pressure and some demand for lower cost deferred services.

Despite current market terms and pricing pressure Jetpak has achieved solid results during the quarter, as well as full year. This reflects strong cost control and a cost variable production model combined with continued high quality and well controlled overhead costs. Pricing has been aligned with the changing market conditions and cash conversion has been maintained on a high level.

Jetpak's total revenue for the quarter amounted to 297 121 (320 778) TSEK, corresponding to a negative growth of -7,4 % (16,5 %).

The operating profit amounted to 31 432 (29 131) TSEK, equal to an operating margin of 10,6 % (9,1 %). Jetpak's cash flow from operations amounted to 40 915 (46 453) TSEK.

The Express Air segment realized net sales of 137 893 (161 525) TSEK, which corresponded to a decrease of
-14,6 % (26,0 %), while the gross margin amounted to 36,6 % (38,6 %).

The largest revenue decline within the segment came from Europe and Denmark, with revenue declines of 34,6 % and 20,0 %, respectively. Our European operations continued to be affected by lower volume and revenues from the spare parts logistics market, where customers have initiated cost-saving programs and selected deferred road-based solutions.

In our Danish operations, the decreasing revenue was driven by reduced volumes and the fact that some customers chose more standardized solutions. Sweden, Norway and Finland also reported reduced revenues, mainly driven by a reduced volume in medical and health care.

The Express Road segment had net sales of 152 024 (149 244) TSEK, corresponding to a revenue increase of 1,9 % (7,4 %), and the gross margin increased to 22,9 % (21,3 %), mainly driven by a changed customer mix and a reduction in volume within larger customers with lower margins. The decline in the Road segment came from Norway, Denmark and Finland, which together decreased by – 8,1 %. Sweden and Europe reported increased revenue levels.

The performance improvement programs for both Denmark and Europe both followed our plan.

Both countries are working hard on new commercial initiatives and on their pipeline extension,
despite that it takes longer to close new deals due to the continued economic uncertainty.

Jetpak's ESG strategy is based on our long-term commitment to the environment as well as commitment to our customers, employees, and other stakeholders. We have launched our ESG strategy to further integrate sustainability into all our business processes. Part of the ESG strategy is to move towards new and more efficient technology.

During the quarter, Jetpak has continued to investigate the extent to which drone technology can support Jetpak's future supply chain. We have continued cooperation around several possible distribution areas for drone deliveries within the Nordics. Commercial start date has not yet been defined but is awaiting regulatory approval as well as commercial commitment from customers.

Within our Express Road segment, great advantages can be gained by using new technologies.

We are currently investigating and analyzing AI-based solutions, which can result in improved route planning and improved vehicle utilization. An agreement has been reached with one of our larger customers where a number of electric vehicles will be introduced in the coming months. In addition, an in-depth analysis is carried out within our densest distribution areas, as an increased battery range and load capacity provide more opportunities in the future.

In 2023, we completed three company acquisitions, which was a record in Jetpak's history; first Budakuten in Malmö in May, then BudAB at Stockholm-Arlanda in October and just before Christmas the acquisition of Kvalitetstransport at Oslo-Gardermoen Airport was announced, with access from and including January 2024.

These acquisitions were important to strengthen Jetpak's market presence, not least at the Nordic region's most important hubs for air transport. Together with the CTS acquisition in 2022, we have now strengthened our market position at both Kastrup, Arlanda and Gardermoen and can combine these acquisitions with Jetpak's existing operations at these important airports and capital regions within our Nordic home markets.
 

Directly after the takeover of Kvalitetstransport in January 2024, integration work began with Jetpak's existing operations at Gardermoen. We expect to be able to successively realize integration gains as early as 2024.

We will continue to strategically participate in the consolidation of the Nordic market for fast and time-critical logistics, as the M&A multiples have come down to more attractive levels. However, we will reduce the number of acquisitions in the coming quarters in order to focus on ensuring a good integration of the businesses acquired this year.

We are doing our utmost to counter-act on the current demand volatility and decreasing volumes. Within our strategic focus areas, we have ramped up on activities focusing on organic growth. This includes introduction of a broader geographic coverage of selected services such as temperature controlled and special services. In addition, we are ramping up on sales channels as well as launch of digitalized marketing campaigns.

Direct and indirect cost optimization is being pursued in our cost efficiency projects, where we aim at further cost savings based on supplier model optimization as well as synergies from newly acquired businesses.

Based on current market conditions, we expect at least the first half of 2024 to continue to be challenging.

The negative growth is expected to continue in the coming quarters as well, but we expect a continued stable adjusted EBITA, thanks to our continued good cost control. A slow market recovery is expected from the end of the second quarter of 2024.

The board proposes to the annual general meeting in June 2024 no dividend relating to the financial year of 2023.

Despite the macroeconomic challenges, we reiterate our long-term goals for organic growth, with a continuously improved adjusted EBITA.

Kenneth Marx,
Chief Executive Officer
 

Conference call

At 10:00 CET today, CEO Kenneth Marx and CFO Håkan Mattisson will present the results.
The presentation will be held in English.

Please use one of the dial-in numbers below to join the conference call:

Sweden:  +46 (0) 20 089 63 88
Norway:  +47 2 156 3319    
Finland: +358 9 2319 54 36                       
Denmark:  +45 3272 9274 
Germany:  +49 (0) 89 2444 32976     
Belgium:  +32 (0) 2 792 0435  
Netherlands:  +31 (0) 20 794 8428                  
USA:  +1 786 496 5601
UK:  +44 (0) 33 0551 0202

Note that any toll free numbers can only be reached from within each county.

PIN code (same code for all the above dial-in numbers): 650 79 26 #

Please make sure you are connected to the phone conference by calling in a few minutes before the conference begins.
_______________________________________________________________________

The company’s certified advisor is FNCA Sweden AB.

This information was submitted for publication, through the contact person mentioned below,
on 28 February 2024 at 06:30 CET.
This constitutes information that Jetpak Top Holding AB (publ) is required to publish under the EU Market Abuse Regulation.

The full report is attached to this press release and is also available at:
https://jetpakgroup.com/en/investors/financial-reports/       

For further information

Håkan Mattisson, CFO
Phone: +46 8 5558 5220
e-mail: ir@jetpak.com


About Jetpak

Jetpak is a logistic group represented in more than 170 locations around the Nordic region and in Europe. Jetpak has a unique and flexible customer offering based on having access to normally approximately 4,000 daily flight departures, in combination with a comprehensive distribution network with more than 950 delivery vehicles. This is something that makes it possible for Jetpak to deliver the fastest and most comprehensive 24/7/365 same-day logistic service to the market.
This can be further supplemented by a unique customized next-day service for systemized transports.

Segment wise, Jetpak has its business divided into one Express Air segment, where the customers’ fast logistic needs have been solved by an air-based solution, and into one Express Road segment, where the customers’ logistic needs have been solved by a land-based courier transport solution.

The group’s parent company, Jetpak Top Holding AB (publ), is since 5 December 2018 listed on Nasdaq First North Premier Growth Market in Stockholm, Sweden.
The Jetpak share is traded under the short name JETPAK and with the ISIN code SE0012012508.
Please visit: https://jetpakgroup.com