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Jetpak Top Holding AB (publ): Interim Report 1 January – 30 September 2022

Third quarter: 1 July – 30 September 2022

· Total revenue increased by 23,1 % to 308 371 (250 428) TSEK
· Organic growth amounted to 11,8 % (15,1 %)
· Gross margin amounted to 30,0 % (30,5 %)
· Operating profit amounted to 30 718 (24 413) TSEK
· Adjusted EBITA amounted to 30 718 (24 413) TSEK
· Net income amounted to 21 198 (16 379) TSEK
· Basic earnings per share amounted to 1,74 (1,36) SEK
· Diluted earnings per share amounted to 1,74 (1,35) SEK
· Cash flow from operations amounted to 34 490 (34 910) TSEK
· Cash and cash equivalents amounted to 140 553 (112 425) TSEK
· Net debt in relation to adjusted EBITDA R12: 0,5 (1,2)

Interim period: 1 January – 30 September 2022

· Total revenue increased by 23,1 % to 932 370 (757 296) TSEK
· Organic growth amounted to 13,2 % (15,5 %)
· Gross margin amounted to 31,0 % (30,2 %)
· Operating profit amounted to 93 085 (71 053) TSEK
· Adjusted EBITA amounted to 93 085 (71 053) TSEK
· Net income amounted to 65 353 (47 385) TSEK
· Basic earnings per share amounted to 5,36 (3,95) SEK
· Diluted earnings per share amounted to 5,36 (3,92) SEK
· Cash flow from operations amounted to 80 581 (57 528) TSEK

The comparison figures within parentheses refer to the corresponding period last year, unless otherwise stated.
CEO comments
Jetpak had another strong quarter with a total growth of 23,1 % with an underlying organic growth of 11,8 %. Total revenue amounted to TSEK 308 371 and the operating profit to TSEK 30718 – equal to an operating margin of 10,0 %.
The Express Air segment reported a revenue of MSEK 157,9, corresponding to a growth of
36,8 % with a gross margin of 38,9 (41,3) %. Main revenue drivers were Europe, Denmark and Norway. Especially Europe fueled growth all year with high activity levels for larger customers  within systemized and ad-hoc services. Denmark benefitted from the acquisition of CTS Express, who contributed with MSEK 18,8 of revenue. The segment’s gross margin decreased due to the increasing revenue from large European customers. Additionally, the SAS pilot strike negatively impacted our high margin ad-hoc business.

The Express Road segment reported a revenue of MSEK 143,1, which corresponded to a growth of 12,3 % and a gross margin of 18,3 (19,2) %. The growth was mainly driven by larger Swedish B2C and wholesale customers with both systematic transport and ad-hoc based needs. Growth for the segment was also positively affected by the introduction of “Fuel & Sustainability surcharge” from April. Denmark showed negative growth of 3.7% due to some lost customers. Improvement actions have been defined and are currently being implemented. 
The Express Road segment’s gross margin slightly decreased due to positive revenue development on larger – but lower margin accounts.

Market growth continued steadily for both segments during the quarter, even though our Express Road segment was on a lower growth path, due to increased competition and customer loss in Denmark. Competition within our Express Air segment remained stable, even though the ad-hoc was slightly impacted by competition from deferred logistic solutions.
We expect a relatively unchanged market situation during the coming quarter.

The 15-day long pilot strike at SAS during the beginning of the third quarter mainly affected Jetpak Sweden and Norway through a generally reduced flight frequency. Furthermore, smaller regional commuter jets were deployed by SAS on its domestic routes. The strike had an est-imated negative revenue impact on our ad-hoc business amounting to approximately MSEK 3,5.
Thanks to our contingency planning already by the end of the second quarter, we managed to reschedule and change capacity providers within our network, something which limited the negative effects from the SAS strike.

Air capacity remains a concern due the financial distress of major airlines following Covid-19, which also has contributed to SAS’ Chapter 11 process. Even though we are facing more volatile schedules and air capacity changes, we do not expect any further negative impact on Jetpak during coming months, as we are prepared to provide substitute capacity in case of further reductions.

To support our future network stability, we have established a five-year capacity agreement with Widerøe, primarily for the support of domestic Norwegian and European networks.

Russia’s war against Ukraine continued to have an indirect impact on Jetpak with increased fuel costs on our road and air network. Our implemented pricing initiatives have however to a large extend neutralized fuel price increases and other inflation-driven cost increases.

We continued to optimize our supply chain with CO2 reducing activities, including capacity optimization, in combination with use of HVO fuel and projects to increase the use of electric vehicles in densely populated areas. The drone technology is closely followed and will become an integral part of our future supply chain,  when we have an operationally and commercially viable delivery model. These initiatives will continue to be important areas of focus in the coming periods.

M&A remained a high priority during the quarter, and we are currently in dialogue with a few prospects while our M&A pipeline is being further developed. Transactions are not expected to be realized within the next couple of months due to the current uncertain economic outlook, which potentially can lead to more M&A opportunities and to more attractive valuations in the future.

We have during the quarter entered into a new long-term financing agreement, including a revolving credit facility on favorable market terms. This agreement is an important prerequisite to realize our growth plans during coming years.

During the third quarter management and board reviewed our strategy and overall targets and it was decided to continue the decided growth path based on M&A driven growth within our current markets as well as organic growth in terms of new products and services and in combination with geographic expansion of current product portfolio. Further cost efficiency initiatives will be prioritized during 2023 to protect our margins in case of further economic downturn.   

Looking ahead into 2023 our growth expectations are moderate – based on the high inflation and interest rates within our core markets. The further development is carefully monitored, and contingency plans are prepared to minimize any potential margin impact.

Despite operational disruptions and cost challenges, we maintain our long-term targets for organic growth and adjusted EBITA.

Kenneth Marx,
Chief Executive Officer

Conference call
At 10:00 CET today, Kenneth Marx, CEO and Håkan Mattisson, CFO, will be presenting Jetpak’s result for the quarter. The presentation will be held in English.
Please use one of the dial-in numbers below to join the conference call:
Sweden: +46 (0) 8 5051 0086
Norway: +47 2 156 3319
Denmark: +45 3272 9274
Germany: +49 (0) 30 3001 90613
Belgium: +32 (0) 2792 0435
Netherlands: +31 (0) 20708 5074
USA: +1 646 843 4609
UK: +44 (0) 33 0551 0202
PIN code (same code for all the above dial-in numbers):
19 85 880 #
Please make sure you are connected to the phone conference by calling in a few minutes before the conference begins.
The company’s certified advisor is FNCA Sweden AB.

The information was submitted for publication, through the contact person mentioned below, on 24 November 2022 at 06:30 CET.
This constitutes information that Jetpak Top Holding AB (publ) is required to publish under the EU Market Abuse Regulation.

The full report is attached here below and also available at:

For further information
Håkan Mattisson, CFO
Phone: +46 85558 5220
e-mail: ir@jetpak.com
About Jetpak
Jetpak is a logistic group represented in more than 170 locations around the Nordic region and in Europe. Jetpak has a unique and flexible customer offering based on having access to normally approximately 4,000 daily flight departures, in combination with a comprehensive distribution network with more than 950 delivery vehicles. This is something that makes it possible for Jetpak to deliver the fastest and most comprehensive 24/7/365 same-day logistic service to the market.
This can be further supplemented by a unique customized next-day service for systemized transports.
Segment wise, Jetpak has its business divided into one Express Air segment, where the customers’ fast logistic needs have been solved by an air-based solution, and into one Express Road segment, where the customers’ logistic needs have been solved by a land-based courier transport solution.
The group’s parent company, Jetpak Top Holding AB (publ), is since 5 December 2018 listed on Nasdaq First North Premier Growth Market in Stockholm, Sweden.
The Jetpak share is traded under the short name JETPAK and with the ISIN code SE0012012508.
Please visit: https://jetpakgroup.com