Intereuropa Reports 15% Rise in H1 Net Profit

STA, 29 August 2019 - The logistics group Intereuropa generated EUR 80.57 million in sales revenue in the first half of the year, slightly more than in the same period last year, while net profit was up by 14% to EUR 3.07 million, shows the unaudited report published on Thursday.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were up 3% to EUR 7.07 million, and operating profit increased by 2% to EUR 6.84 million.

While the group increased net profit above all expectations, as it exceeded the plan by 25%, the amount of sales revenue was 5% below the plan.

This is mostly due to some of the planned one-off deals in the air, railway and road transport failing to materialise, the company says in the report, adding that revenues were up year-on-year only in the logistics solutions segment.

In the land transport segment, the group generated 52% of its total sales and generated EUR 42 million in sales revenue, which is 1% less year-on-year and 4% below the plans.

EBITDA were 7% above the plan, which Intereuropa attributes mostly to the received payment of a years-old claim based on a court settlement.

Labour costs in the first half of the year were up by 1% compared to the same period last year, with a growth of average labour costs per employee having the largest impact.

At the end of June, the group employed 1,359 workers, which is 32 more than at the end of last December. This is due to the direct hiring of some workers who had previously worked for the group through temping agencies.

The group's operating profit amounted to EUR 3.8 million, or 2% more than in the first half of 2018, while net financial debt of the group was down by 10% compared to the end of last year to EUR 53.9 million.

The core company Intereuropa, based in Koper, saw its sales revenue increase by 1% to EUR 57.14 million, while net profit surged by 30% to EUR 2.96 million.

The core company's EBITDA and operating profit were meanwhile down by 2% and 4% to EUR 4.95 million and EUR 2.79 million, respectively.

The report notes that EUR 691,000 in turnover with Intereuropa shares had been generated on the Ljubljana Stock Exchange (LJSE) in the first half of the year, which is more than 25% less year-on-year.

In the January-June period, the share lost 2.3% of its value on the LJSE.