4 April 2018

OT Logistics Capital Group's revenue increased in 2017 by over 22% YOY reaching PLN 867 MM thanks to the consolidation of new companies.

OT Logistics Capital Group, the biggest port operator in Poland and a leader in inland shipping in Central and Eastern Europe, in 2017 made consolidated sales revenue of PLN 867 MM.
Operating profit was lower by PLN 5.6 MM YOY and amounted to PLN 28.9 MM. EBITDA was up 30% year-over-year, reaching PLN 93.6 MM. The Group achieved net profit of PLN 42.6 MM.

Just in the fourth quarter of 2017 OT Logistics Capital Group noted revenue of PLN 227.4 MM (up 20% YOY) and EBITDA amounting to PLN 30.5 MM (+6% YOY). Net profit for this period reached PLN 29.8 MM.

2017 financial results were significantly affected by changes to the structure of OT Logistics Capital Group following earlier acquisitions. Last year results of companies such as Sealand Logistics, STK (along with its subsidiaries) and Kolej Bałtycka, as well as C.Hartwig Adria and OT Nieruchomości were consolidated, and in the fourth quarter of 2017 also, for the first time, financial results of Luka Rijeka d.d., the Croatian port operator. Taking over operational control over this port positively affected  revenues of OT Logistics Capital Group and its port segment.

In 2017 consolidated revenue increased by about 22% YOY reaching PLN 867 MM. Comparing to the previous period, the revenue structure changed due to the consolidation of new companies. In 2017 about 55% consolidated revenue was generated by the freight forwarding segment. The second biggest segment (33% revenue) were transport services, covering rail companies and companies engaged in inland shipping. And port services accounted for 11% revenue from external entities.

Also the increase in consolidated EBITDA year-over-year resulted from the extended scale of operations of OT Logistics Capital Group. Companies such as STK, Kolej Bałtycka and Luka Rijeka positively contributed to EBITDA in the amount of PLN 23 MM.

Considering the Group’s activity in particular segments, the consolidation of new companies resulted in an increase in sales revenue in the  transport segment to PLN 298.8 MM comparing to PLN 213.4 MM a year before. EBITDA in this segment increased by over 50% YOY, to PLN 38.6 MM.  Still, the transport segment generated net loss, among others because of lower demand for rail and shipping services.

In the freight forwarding segment, in 2017 revenue grew by 6% YOY, to PLN 475.9 MM. EBITDA increased by over 25%, to PLN 19 MM. On the other hand, net profitability of this segment was affected by costs of extension of commercial structures by new competencies within the Group (including establishment of a new Intermodal Logistics Division focused on exchange of goods with China). The negative result was mainly the consequence of an increased depreciation connected with the acquisition of the company Sealand Logistics.

Revenue increase in the port segment resulted mainly from the consolidation of the port of Rijeka’s financial results. In 2017 the segment generated revenue amounting to PLN 91.1 MM, compared to PLN 70.8 MM a year before. EBITDA of the port segment decreased in 2017, reaching PLN 18.3 MM compared to PLN 29.5 MM a year before. The main factor responsible for EBITDA decrease was drop in transshipment in the cereal segment, caused by delayed harvest and low cereal prices, which led to lower turnover in the whole market.

“We have recapitulated the first year of OT Logistics Capital Group’s activity after significant acquisitions made. Last year our total investment spending exceeded PLN 100 MM. The Group’s result already reflects the effects of rail companies’ operations and, from the last quarter onward, also these of the port Luka Rijeka. At the port of Rijeka we see a potential to reduce costs. Our aim is to increase the efficiency of using current assets, we are reviewing investment projects carried out there. We also want to create a synergy between the port and our Balkan subsidiary C.Hartwig Adria,” Zbigniew Nowik, the President of the Management Board of OT Logistics, says.

Let us recall that last year OT Logistics finalised the additional purchase of shares of the Croatian port Luka Rijeka. As a result of this transaction OT Logistics now holds 26.51% shares of the port operator. Furthermore, an agreement was made with other shareholders of Luka Rijeka – pension funds Allianz ZB d.o.o. and ERSTE d.o.o. – enabling the Group to take over operational control over the port. Parties to this agreement currently hold in total 50.56% of the port operator’s shares.

Basic financial data of OT Logistics CG (in PLN million)

Data in PLN million 2017  2016 Change
Sales revenue 867.0 712.1 +21.8%
Operating profit (loss) 28.9 34.5 -16.2%
EBITDA 93.6 72.3 +29.5%
Net profit (loss) 42.6 8.5 +403.9%

 

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