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Revenue decreased by 33.1% to EUR 115.5 million in the second quarter of 2020, according to Waberer’s financial report published yesterday evening. The main reason for the significant decrease is the decline of the International Transportation Segment, whose revenues decreased by 48.9% to EUR 62.6 million in the second quarter of 2020 compared to the same period in the previous year.

Recurring EBITDA decreased by 27.5% year-on-year to EUR 8.7 million due to the fall in revenue while EBITDA margin improved by 0.6 percentage points to 7.5% as a result of extraordinary measures leading to significant cost savings, can be read in the document.

The company explains the poor financial results by referring to the international economic situation.

European economic indicators plummeted in April and May 2020 as a result of the COVID-19 containment measures.3 The year-on-year fall in industrial production amounted to 29% and 21% in April and May, respectively. Retail trade decreased by 18% and by 4% in April and May year-on-year, with retail volumes in the nonfood products decreasing by 29% and 7%, respectively. In Hungary, the fall in industrial production was even more pronounced than in the Eurozone as volumes fell by 37% in April and by 27% in May. Retail trade in Hungary contracted by 10% and 2% in April and May, respectively.”

 Waberer’s International Transportation Segment’s revenues fell by almost half in the second quarter of 2020 compared to revenue in 2019 at the time. Their revenue in the first half of the year also shows a significant drop, a decrease of 30%. 

International Transportation Segment revenue decreased by 48.9% to EUR 62.6 million in the second quarter of 2020 compared to the same period in the previous year. The active fleet size decreased by more than 1,500 trucks, or 36.8% year-on-year as a result of the continuous fleet size reduction programme started in 2019 and the halt of cca. 1,000 trucks in March 2020 introduced in response to the pandemic-related fall in demand. Transportation prices fell as transportation capacities exceeded the demand in the crisis.”

In contrast to the results of international transportation, the regional segment increased slightly in the second quarter, and also grew by 13% compared to 2019 in a half-year comparison.

Revenue in the Regional Contract Logistics segment rose by 1.6% year-on-year to EUR 36.8 million in the second quarter of 2020. The increase in revenue was partly due to a large contract in the automotive sector where Waberer’s provides in-house logistics services and partly due to the temporary higher market demand for logistics and transportation services in the consumer staples segment that offset the negative effects of the volume drop in other clients segments” – can be read in the report.

Waberer’s main shareholder is considering selling its shares

There has been talk for some time in professional circles that Waberer’s major investor is considering selling its shares. This gossip was confirmed by the company itself last week in a statement.

Mid Europa has confirmed to Waberer’s that it has appointed Rothchild to help it consider strategic options for its investment in Waberer’s, including the sale of its stake in the Company. There can be no certainty that Mid Europa will sell any or all of its existing shareholding” – can be read in Waberer’s investor release.

Poor financial results

As we  reported earlier, Waberer’s International financial results regarding the first quarter of 2020 were not telling a success story. The company’s net loss was 2.5 million euros during this period which wouldn’t sound very bad compared to the 4,4 million euros loss of last year’s same period. However, the company’s shares were then sold for half of last year’s maximum price – 752 Hungarian forints (approx 2, 15 euros).

The company’s revenue decreased by 5% year-on-year in the first quarter of 2020 to 174 million euros. Compared to the first quarter of last year, revenue was 17% lower in the International Transportation Segment (ITS) as a result of the fleet reduction programme, partly offset by the impact of slightly higher prices. In the Regional Contract Logistics (RCL) segment, revenue grew by 33% in the first quarter as a result of a new large automotive in-house logistics operation that started in December 2019.

At the end of March, with the coronavirus crisis having a significant impact on the European logistics industry, Waberer’s introduced immediate measures. One of the most important reforms was the change of the CEO – Robert Ziegler left the company and Barna Erdélyi was appointed, former Chief Financial Officer, was appointed in his position. At the same time, the company suspended the operation of a significant number of trucks; re-negotiated wages and introduced unpaid leaves.

Photo: Facebook/waberersofficial

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