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Jetpak Top Holding AB (publ): Full Year Report 1 January – 31 December 2020

Fourth Quarter: 1 October – 31 December 2020:

· Total revenue increased by 15,2 % to 251 276 (218 113) TSEK
· Organic growth amounted to 3,9 %
· Contribution margin amounted to 30,9 % (33,9 %)
· Operating profit amounted to 27 795 (22 360) TSEK
· Adjusted EBITA amounted to 28 503 (22 953) TSEK
· Profit for the period amounted to 16 366 (18 635) TSEK
· Earnings per share before dilution amounted to 1,38 (1,55) SEK
· Earnings per share after dilution amounted to 1,35 (1,52) SEK
· Cash flow from operations amounted to 33 082 (43 793) TSEK
· Cash and cash equivalents amounted to 87 230 (87 113) TSEK
· Net debt in relation to adjusted EBITDA R12: 1,6 (1,1)

Full year: 1 January – 31 December 2020:

· Total revenue increased by 5,5 % to 912 395 (864 488) TSEK
· Organic growth amounted to -7,0 %
· Contribution margin amounted to 30,6 % (34,7 %)
· Operating profit amounted to 73 816 (91 634) TSEK
· Adjusted EBITA amounted to 76 649 (92 856) TSEK
· Profit for the period amounted to 44 040 (67 205) TSEK
· Earnings per share before dilution amounted to 3,69 (5,60) SEK
· Earnings per share after dilution amounted to 3,58 (5,46) SEK
· Cash flow from operations amounted to 84 412 (67 166) TSEK
· The Board of Directors proposes that no dividend will be paid for the financial year 2020

CEO comments:
Jetpak entered 2020 with expectations on continued growth and profitability, based on defined commercial activities and the acquisition of 3D Logistik in Denmark. However, as the covid-19 pandemic outbreak took hold during the first quarter, our revenues and profitability decreased dramatically due to global restrictions and decreasing demand.
Our focus then rapidly changed towards safeguarding capacity and ensuring strong cost control; several measures were launched such as temporary lay-offs, alternative transport solutions and commercial initiatives safeguarding our processes and quality.

Commercial airline capacity vanished overnight due to travel restrictions, which decreased our available capacity by more than 80 % during the second quarter, which in turn led us to experience our worst quarter in many years. Thanks to our strong cost control measures and commercial initiatives we managed to achieve results during the third quarter, which were in line with the previous year. This despite substantial reductions in our high margin revenue area, as a result of continued major air network reductions.

Jetpak managed to further improve results during the fourth quarter with revenues amounting to 251,3 MSEK, an increase of 15,2 %, compared with the same quarter last year. The corresponding operating profit for the quarter amounted to 27,8 MSEK, equal to an operating margin of 11,1 %. This represented a profit increase by 5,4 MSEK, or +24,3 %.
The 2020 revenue amounted to 912,4 MSEK, an increase by 5,5 % compared with last year. The corresponding operating profit for 2020 amounted to 73,8 MSEK, equal to an operating margin of 8,1 %. This represented a yearly profit decrease by 17,8 MSEK, or -19,4 %.
During the last two quarters of 2020 the business activity and demand headed towards normalization across our primary customer segments, even though there were large variations between segments due to significant capacity constraints on air related products.

During the third quarter we experienced an increased demand for courier services, something which continued into the fourth quarter. The organic courier growth was then fueled by larger B2C focused distribution accounts, which contributed to our Express Systemized segment growth. Our acquisition of 3D Logistik also significantly increased our Express Systemized revenue, which grew by 41,9 % during the fourth quarter – resulting in a strengthened market position within the Nordic region.

Demand for airfreight services also increased during the third quarter and further picked up during the fourth quarter. This supported our Express Ad-hoc segment, even though growth remained negative during the quarter with -11,2 %. Continued travel restrictions impacted major parts of our network, and our growth potential was eliminated by capacity reductions.
Our market position within this segment was unchanged during the last quarter.

Major reductions of air network continued to add additional costs during the last quarter, as backup solutions caused significant direct cost increases as well as additional administrative costs, which could only be justified by maintaining our capacity surcharge. 

During the quarter we continued our strive towards an improved cost base and cash position, as supplier contracts were revisited and internal processes improved, which also caused some minor organizational adjustments. The functional integration was finalized in Jetpak Denmark and furthermore we initiated the first phases of Nordic courier concepts, something which we believe will add further value to Jetpak. 

Our last quarter strategy review resulted in confirmation of our most important strategic focus areas facilitating long term organic growth and profitability. These areas address, for instance, a European network & Nordic courier expansion, business partner programs as well as optimization of supplier models, something which has been among our main priorities for both past and for the coming quarters.

Our work with Environmental, Social & Governance enhancing activities continued during the quarter, as we introduced our whistleblower program as well as raised our ambitions and initiated initiatives towards a future CO2 neutral business model. The first zero emission electric vehicles have been launched within our more than 820 truck strong Jetpak vehicle fleet. These are just a few of our ESG related activities leading us towards our long-term target.

In December Jetpak entered a new five-year contract with SAS, which is in line with our asset light long-term partner strategy and an important foundation of safeguarding our business model and network for coming years. Furthermore, Jetpak signed a long-term handling facility contract with Swedavia in January, something which will secure our strategically important presence at Arlanda Airport. 

In view of our current performance and defined initiatives we maintain some optimism regarding next quarter. We expect further stabilization of our revenue level during the first quarter, mainly driven by larger courier accounts providing B2C and B2B services, as well as revenue contribution from vaccine distribution. Continued travel restrictions will maintain an airfreight capacity gap during the coming months, which potentially challenges the overall margins during the first quarter of 2021.

Jetpak is still exposed to new waves of covid-19, which potentially can lead to further temporary travel restrictions. We are closely monitoring the development and have the necessary contingency plans in place, which include complimentary network solutions and further optimization of our cost structure.

Based on experience from last quarters and as earlier indicated, we have concluded that our business focus can be strengthened by changing our segment reporting into Express Air and Express Road, as business model and capacity constraints vary across the air and road products. We will apply this follow-up view from 2021.

The Board of Directors do not propose any dividend to the Annual General Meeting on the 4[th] of June 2021, as air capacity and market conditions are expected to remain volatile for the coming months. A solid balance sheet and cash position is prioritized to ensure a controllable financial development – awaiting further normalization of business environment and capacity.

Based on our fourth quarter performance and the expected recovery from the covid-19 pandemic, we maintain our long-term targets of 5 % organic growth over a business cycle with 12 % of adjusted EBITA.

Kenneth Marx
CEO Jetpak
Conference call:
At 10 o’clock today (CET) Kenneth Marx and Håkan Mattisson, CFO, will be presenting Jetpak’s result for the fourth quarter and for the full year of 2020.
Please use one of the toll-free phone numbers listed below to join the conference call:
Sweden:            +46 (0) 8 5051 0086
Norway:             +47 2 156 3319                           
Denmark:          +45 3272 9274 
Finland:             +358 9 2319 5436                      
Germany:          +49 (0) 303 0019 0613     
Belgium:            +32 (0) 2 792 0435                    
Netherlands:      +31 (0) 20 708 5074
USA:                  +1 646 843 4609
UK:                    +44 (0) 20 3321 8574 
PIN code (same code for all the above numbers): 4679300#


The company’s certified advisor is FNCA Sweden AB, e-mail: info@fnca.se, telephone:+46(0)8 52800399.

The information was submitted for publication, through the contact person mentioned below, on the 25[th] of February 2021 at 06:30 CET.
This constitutes information that Jetpak Top Holding AB (publ) is required to publish under the EU Market Abuse Regulation.

Kenneth Marx, CEO
Phone: +46 (0) 73 368 54 00
e-mail: ir@jetpak.com
About Jetpak:
Jetpak is the simple and fastest option for prioritized door-to-door deliveries. We offer solutions for both spontaneous transport needs and customized logistics. Jetpak is represented in more than 170 locations around the Nordic region and Europe.
The Jetpak Top Holding AB share is listed on the Nasdaq First North Premier Growth Market.
The share is traded with the ISIN code SE0012012508 under the short name JETPAK.
Please visit: https://jetpakgroup.com


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