WOOD Flash – Waberer’s International: 4Q17 results – freight rate hike and high LINK contribution
Waberer’s has reported its 4Q17 results. Revenue came in lower than we expected, due chiefly to the lower utilisation of trucks than we anticipated in a seasonally weak quarter. This weakness was, however, offset partially by higher freight rates in the International Transportation segment. The average rate per kilometre rose by 5% yoy, while we expected a 3% hike. Due to the lower truck mileage, the associated costs were also below our expectations. As a result, the overall EBITDA reached EUR 20.5m on an adjusted basis, beating our estimate by 7%. The beat was fully attributable to the International Transportation segment, while the two other segments reported slightly weaker results than we anticipated, but their contribution to the total result remained low. The beat was fully attributable to the International Transportation segment, and resulted from higher freight rates and the higher LINK contribution, while the other two segments reported slightly weaker results than we had anticipated, but their contribution to the total result remained low.Overall, the 4Q17 results imply adjusted EBITDA of EUR 85.6m for 2017, EUR 1m ahead of our full-year forecast, the result of the higher LINK contribution, in our view. The net profit came in at EUR 5.2m, while we expected only EUR 0.9m. The beat was the result of FX gains and tax asset recognition. Management has also disclosed its outlook for 2018E. It sees a continuation of positive market trends and the opportunity to raise rates further. The company also expects that, in 2018E, the group could perform at least at a similar rate of annual growth as in 2017. This would imply revenue growth to c.EUR 800m in 2018E, while we expect EUR 804m.
Waberer's International Nyrt, formerly Waberer's International Zrt, is a Hungary-based company engaged in the provision of the transportation services in the region of Central and Eastern Europe. The Company provides international road transportation, forwarding of LTL and groupage cargo, overseas and air transportation management, customs services, vehicle repair, second hand vehicle sales and logistics services. The Company operates also through subsidiaries, including Waberer's Logisztika Ltd that is charge of domestic transportation activities and operates with four divisions - gas, food, dry-cargo transportation and large truck operation, and H-Rapid service that operates within the dry-cargo division, delivering freight to its destination within 24 hours. Waberer's International Nyrt manages also subsidiaries in Romania, Poland and Slovakia as well as in the western region, in Spain and Germany.
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