Waberer’s Group has further increased its revenue in the first quarter of this year, which represents one of the highest quarterly revenue figures in the history of the company listed in the Premium category of the Hungarian Stock Exchange at the consolidated level. This corresponds to an 11% increase compared to the same period last year, thus achieving a revenue of €196.7m for the group. The first quarter EBIT amounted to €8.5m, thanks to the continued improvement in the Insurance and Contractual Logistics segments.
The management of the group continues to maintain the profit expectations published at the beginning of the year, according to which – including the proportional revenue of newly acquired companies – nearly €800m in revenue and over €40m in EBIT can be achieved for the whole of 2024. Based on this year’s general meeting, Waberer’s will pay a dividend of 120 forints per share, which is 20% higher than last year.
Despite a relatively unfavorable economic environment in key markets, Waberer’s Group closed the first quarter with stable performance. This result also proves that the strategy announced at the end of last year is developing according to preliminary plans, which can provide a solid foundation for future growth.
As Hungary’s leading complex logistics provider, the group-level revenue of Waberer’s in the first quarter of 2024 amounted to €196.7m. This represents a double-digit increase of 11.3% compared to the same period of the previous year. This is also a record for the company, as there has never been such a high quarterly revenue before. The EBIT (earnings before interest and taxes) result, in line with management expectations, was €8.5m, compared to the value of over €11m a year earlier. The decline in EBIT is partly due to decreased industrial production volumes in Germany, Italy, and Hungary, which are among the most important markets for Waberer’s Group. Additionally, the retail sector also performed weakly at both international and Hungarian levels. Significant increases in road tolls in several countries relevant to transportation also contributed to the decline in EBIT. However, the group expects significant improvements in the international transportation and logistics segment in the second half of the year, which could positively affect the group’s results.
The Contractual Logistics Segment (RCL), due to successful customer acquisitions in recent periods, increased its quarterly EBIT by 14.8% to €4.6m. The core activity managed to maintain its profitability despite stagnant domestic consumer demand. The acquisition of the Serbian distribution market leader, MD International, was finalized at the end of the quarter, and the performance of the acquired company will be reflected in the segment’s results starting from the next quarter.
In the International Transportation and Logistics Segment (ITS), the group finalized the acquisition of the railway logistics PSP Group at the beginning of the first quarter of 2024, and the consolidation of the ownership share (51%) improved the segment’s EBIT by €0.3m, contributing to the segment’s result with two months of performance. However, the EBIT of this segment entered the negative range, with a -2m euro value, €3.8m behind the previous year. The subcontracted transportation services saw a slight improvement in profitability, while the own fleet transportation activities achieved lower profitability due to the weak European economic situation and significant increases in road tolls at the beginning of the year. Overall, Waberer’s Group expects significant improvement in the ITS segment’s results from the second half of the year.
The Insurance Segment achieved the highest EBIT result in its history: €5.9m in EBIT, a 9.5% increase from the first quarter of 2023. This was primarily due to high investment results, and the insurance customer portfolio also grew by 15% over the past year. This is expected to expand further due to strategic sales agreements concluded recently.
“The Waberer’s Group has been through a significant quarter in terms of executing our strategy. Important acquisitions that will help further the group’s growth were finalized in the first quarter of 2024, such as the PSP Group and the Serbian MDI. Also, we began developing a new logistics center in Debrecen and reached the final stages of construction of our warehouse in Ecser. We expect these investments and the logistics operation at Ecser to significantly support the group’s profitability in the second half of the year. Additionally, we increased our capital market activity, and based on the approval of the general meeting, we are paying a 20% higher dividend of 120 forints per share compared to last year,” highlighted Zsolt Barna, President and CEO of Waberer’s International.
Source: Waberer’s
