Photo credits @ Waberer's International Group

Waberer’s mixed results for 2024: strong Q3 growth, but nine-month profit down

Waberer's International Group had a mixed financial performance in 2024, reporting a stronger third quarter compared to Q3 2023, but a weaker year-on-year performance for the first nine months of the year.

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According to the latest financial report of the Hungarian T&L company, Waberer’s achieved a 10% year-on-year revenue increase in Q3 2024, alongside a 26% rise in EBIT and a significant improvement in net income. However, while revenue grew by 10% over the first nine months, EBIT and net income declined in this period due to the absence of one-off gains that had positively impacted 2023’s results.

Contract logistics drives growth

Waberer’s International achieved consolidated revenue of EUR 193 million in Q3 2024, marking a 10% rise year-on-year, according to the latest figures published by the company. For the first nine months of 2024, cumulative revenue reached EUR 581.5 million, also up by 10% from the same period last year. This growth was primarily driven by expansion in the Contract Logistics (RCL) segment, which contributed 55% to the company’s overall revenue increase, aligning with Waberer’s strategic focus.

Waberer’s consolidated EBIT for the third quarter rose to EUR 10.1 million, a 26% increase from EUR 8 million in Q3 2023. However, nine-month EBIT stood at EUR 29.3 million, down 12.3% year-on-year, which Waberer’s attributes to the absence of one-off gains from 2023, such as positive impacts from a cartel lawsuit and IFRS17 accounting adjustments.

Performance within segments was mixed. The Contract Logistics (RCL) segment achieved robust growth, with a quarterly EBIT of EUR 5.4 million and a nine-month EBIT of EUR 15.2 million, matching its full-year 2023 result. According to Waberer’s, this growth stemmed from successful new client acquisitions and improved profitability in domestic transportation services.

In contrast, the International Transport & Forwarding (ITS) segment faced challenges, particularly within its Polish operations, where unfavourable tax changes increased costs. The segment recorded a quarterly EBIT of EUR -1.9 million and a nine-month EBIT of EUR -1.6 million, despite improvements in pricing and profitability in its Hungarian division. To address these pressures, Waberer’s has adapted the ITS strategy by expanding subcontracting and resizing the fleet to better match demand: the number of trucks was reduced from 2,884 in Q3 2023 to 2,809 in Q3 2024, representing a 2.6% decrease. Additionally, the number of employees in Q3 2024 was 1.8% lower compared to the same period last year.

“Over the recent quarters, the logistics sector has been facing macroeconomic trends at the European and Hungarian levels, as a consequence of stagnating industrial production (especially automotive production) and consumption trends, which are forcing the entire logistics sector to make significant adaptations. In this environment, we see particular value in the significant customer and company acquisitions we have made over the past 12 months, which have allowed Waberer’s Group to stabilise its profitability in challenging conditions and to achieve our 2024 EBIT target,”,” commented Zsolt Barna, Chairman & CEO of Waberer’s International.

Barna added that the company would continue to explore business development opportunities in the coming period, with a focus on rail logistics, regional focus and logistics infrastructure in industrial centres of the countryside.

The Insurance segment recorded its highest-ever quarterly EBIT of EUR 6.5 million, a EUR 2.8 million increase year-on-year, with a nine-month EBIT of EUR 15.7 million. Waberer’s attributes this strong performance to lower claims costs and improved reinsurance and investment results.

Additionally, the company finalised an agreement to acquire a 66.9% stake in Magyar Posta Non-Life Insurance and Magyar Posta Life Insurance, with regulatory approval expected by year’s end.

Nine-month net profit falls despite quarterly gains

Waberer’s net income for Q3 2024 was EUR 5.4 million, up EUR 4.9 million from the same period last year. However, nine-month net income decreased by 52.4% to EUR 12.4 million, reflecting the absence of one-off benefits that boosted 2023 figures.

Net debt reached EUR 242.5 million as of 30 September 2024, up by EUR 28.3 million from the end of 2023, primarily due to acquisitions and warehouse investments. This raised Waberer’s net leverage ratio from 2.2x to 2.6x.

Looking ahead, Waberer’s management has reaffirmed its 2024 financial targets, projecting a full-year EBIT of around EUR 40 million and annual revenue of EUR 770-780 million.

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