Year-End Report Jetpak Top Holding AB (publ) 1 January – 31 December 2019

Quarter 4: 1 October - 31 December 2019

• Total revenue increased by 0.7% to TSEK 218,113 (216,643), of which underlying organic growth amounts to 1.9%
• Net sales decreased by 0.9% to TSEK 209,565 (211,480)
• Operating profit amounts to TSEK 22,360 (13,694), of which non-recurring costs charged in the amount of TSEK 593 (6,298)
• Profit/loss for the period amounts to TSEK 18,635 (-10,293)
• Earnings per share is SEK 1.55 (-2.56)
• Cash flow from current operations amounts to TSEK 43,793 (23,491).

Period: 1 January - 31 December 2019 

• Total revenue increased by 4.6% to TSEK 864,488 (826,660), of which underlying organic growth amounts to 3.5%
• Net sales increased by 4.0% to TSEK 838,426 (805,857)
• Operating profit amounts to TSEK 91,634 (67,220), of which non-recurring costs charged in the amount of TSEK 1,222 (13,931)
• Profit/loss for the period amounts to TSEK 67,205 (13,610)
• Earnings per share is SEK 5.60 (8.42)
• Cash flow from current operations amounts to TSEK 67,166 (38,718), of which TSEK -23,604 refers to the settlement of consultancy costs for the stock-exchange listing
• Cash and cash equivalents amount to TSEK 87,113 (55,086)
• The Board of Directors proposes a dividend of SEK 4.0 (0) per share for 2019 which corresponds to 71,4% of the profit available for distribution

CEO comments

Jetpak reached an important milestone in 2019, as we achieved our best result ever with an adjusted EBITA of MSEK 92,9 to the benefit of shareholders and employees. In addition, our share price has under 2019 increased with over 43% and corresponding market cap with approximately 234 MSEK.

Even though our quarterly revenue growth was fluctuating due to profit optimization programs combined with expiring and new contracts, we realized a total growth of 4,6% and 3,5% organically, which also brought us to a highest ever revenue level at 864,5 MSEK.

A few contracts were terminated or downtrading due to structural changes such as insourcing or warehouse relocation, but we managed successfully to compensate through new business. Our efforts ensured a favorable development towards our high margin Express Ad-hoc segment, which grew 7,4%.     

The fourth quarter met our expectations in terms of profitability. Our revenue growth was modest and according to our expectations. Our performance was satisfactory as previous years last quarters historically have been somehow challenging and unpredictable.

Revenue growth was below our quarterly average, as our total growth was 0,7% and our organic growth was 1,9%. Our segment growth developed slightly in favor of our express systemized segment with an organic growth of 1,6%. Our Express Ad-hoc organic growth was negative with -1%. driven by downtrading in i.e. automotive segment and covering most of our markets excl. Belgium, which provided a satisfactory growth. 

Our modest total and segment growth was balanced by cost efficiency programs and overhead reductions combined with scale benefits. This led us to a highly satisfactory EBITA margin improvement to 10,5% (9,2%) and EBITA (adj.) of 92,9 MSEK, which underlines the strength of our asset light and cost variable business model.

During 2019 we have been working intensively with excellence programs in our operational and commercial functions. We continued to challenge traditional supplier models by exploring alternative compensation models combined with some structural adjustments. We maintained strong commercial focus on systemized industrial solutions as well as fueling our Ad-hoc business through new marketing approaches. Our Business Partner Program remained an important growth driver, and we continued our optimization to avoid customer interface barriers.   

Jetpak has in December signed a contract to acquire 3D Logistik A/S, which is a Danish company specialized in express logistics within i.e. pharma and temperature-controlled solutions. Closing is set to January 2020. The acquisition of 3D Logistik AS will add a yearly revenue of approximately 100,4 MDKK and EBITDA of 7,2 MDKK. This acquisition was an important step towards building a stronger Nordic position in business areas characterized by less cyclicality. A strong position and coverage in Denmark will provide opportunities for pan Nordic solutions and growth.

Jetpak current and 3D activities in Denmark will be consolidated in Jetpak Denmark during 2020, which will provide future operational and commercial synergies supporting EBITA and revenue growth.

End December Jetpak head office was relocated to Arlanda Airport, which has been uniting our Swedish airfreight activities and bringing us closer to our core business. Our new facilities are designed around our main functions and business processes, and will further enhance our future internal coordination, efficiency and execution.

Future industrial growth rate remains uncertain, as we face decreasing and/or low GDP growth in Scandinavia as well as in major European economies in 2020. A potential macro-economic risk will be minimized through our strong pipeline and closed contracts above average quarterly level during quarter four, which supports our revenue growth in 2020. In addition, we are intensifying commercial activities and focusing on growth in less cyclical segments, which has been driving our M&A activity in 2019.

Based on the current market situation combined with newly signed contracts and commercial initiatives, we maintain our long term financial targets as well as dividend policy.

Kenneth Marx / CEO

This report has not been reviewed by the company's auditor.

Rounding differences can affect the summary rows in the report.

The company’s certified advisor is FNCA Sweden AB, e-mail info@fnca.se, telephone +46 8 528 003 99.

The information was submitted for publication, through the contact persons mentioned below, on 14 February 2020 at 08.00 CET. This constitutes information that Jetpak Top Holding AB (publ) is required to publish under the EU Market Abuse Regulation.

For additional information, please contact:

Kenneth Marx, kenneth.marx@jetpak.com, +46 733 685400