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Jetpak Top Holding AB (publ):Interim report 1 January – 30 September 2023

Third quarter: 1 July – 30 September 2023

· Total revenue decreased by -9,2 % to 279 863 (308 371) TSEK
· Organic growth amounted to -13,5 % (11,8 %)
· Gross margin amounted to 29,4 % (30,0 %)
· Adjusted EBITA amounted to 22 460 (31 572) TSEK
· Operating profit amounted to 20 876 (30 718) TSEK
· Net income amounted to 15 265 (21 198) TSEK
· Earnings per share, before and after dilution, amounted to 1,25 (1,74) SEK
· Cash flow from operations amounted to 66 631 (34 490) TSEK
· Cash and cash equivalents amounted to 221 955 (140 553) TSEK
· Net debt in relation to adjusted EBITDA R12: -0,1 (0,5)
· No cost accrual for the long-term incentive program was made in this quarter;
-0 (-2 176) TSEK

Interim period: 1 January – 30 September 2023

· Total revenue decreased by -4,9 % to 886 593 (932 370) TSEK
· Organic growth amounted to -5,2 % (13,2 %)
· Gross margin amounted to 30,7 % (31,0 %)
· Adjusted EBITA amounted to 88 516 (95 630) TSEK
· Impairment loss amounted to -51 705 (-) TSEK
· Operating profit amounted to 32 762 (93 085) TSEK
· Net income amounted to 14 499 (65 353) TSEK
· Earnings per share, before and after dilution, amounted to 1,19 (5,36) SEK
· Cash flow from operations amounted to 92 880 (80 581) TSEK
· Cost accrual for the long-term incentive program was amounted to
-4474 (-6499) TSEK

The comparison figures within parentheses refer to the corresponding period last year,
unless otherwise stated.

CEO comments
The group’s total revenue for the quarter amounted to 279 863(308371) TSEK, which corresponded to a negative growth of -9.2 % (23,1 %).
Adjusted EBITA amounted to 22 460 (31 572) TSEK, which equaled an adjusted EBITA margin of 8,0 % (10,2 %).

Jetpak achieved a very strong cash flow from operations, which amounted to
66 631 (34 490) TSEK, equal to three times the adjusted EBITA for the quarter.
This result was achieved thanks to a very focused work with both suppliers and customers.

Current market conditions during the quarter had a negative revenue and profit impacting both our segments.

The Express Air segment had a net revenue of 138 134 (157881) TSEK, which corresponded to a decrease of
-12,5 % (36,8 %), while the gross margin decreased to 37,6 % (38,9 %).

The largest revenue decline within the segment came from Europe and Denmark, with revenue declines of 34 and 26 % respectively.
The European business continued to be impacted by reduced revenues from the spare parts logistics market, where customers have initiated cost-cutting programs.
Freight rates in our European business generally decreased during the quarter due to overcapacity and some business was lost due to customers pursuing standardized logistics solutions at low rates, which is not Jetpak’s core business.

In our Danish business the revenue decrease was driven by downtrading as well as some customers choosing more standardized solutions.

Norway and Finland also reported reduced revenues, mainly based on a decreasing share of healthcare shipments, while Sweden, as the only geography, reported a revenue increase by 6,3 %, thanks to new customer contracts.

The Express Road segment had a net revenue of 135 456 (143099) TSEK, corresponding to a decrease of -5,3 % (12,3 %),
while the gross margin increased to 19,7% (18,3 %), driven by a changed customer mix and a downtrading for larger lower margin customers.

The decline within the Road segment came from Sweden, Denmark and Norway,
which together decreased by 7,8 %. Finland and Europe reported revenue growth, even though from lower levels.

Profit improvement programs for both Denmark and Europe are following committed timelines.
Cost reductions in Europa have been ramping up from the end of this quarter.
Both countries are working intensively with new commercial initiatives and pipeline build up.
We have noticed during the last few quarters, that the process for closing new business with customers is becoming longer.

Jetpak’s ESG strategy is based on our long-term commitment to environmental responsibility as well as commitment to our customers, employees, and other stakeholders.
We have launched our ESG strategy to further integrate sustainability in all our business processes.
One part of the ESG strategy is to pursue new, more efficient technologies.
Jetpak has during the quarter continued to explore to what extent drone technology can support Jetpak’s future supply chain.
We have a continued positive cooperation with a Swedish drone project.
The parties have a mutual ambition of launching drones in specific areas within Sweden.
A commercial startup date is not yet defined, as we await approval authority and commercial commitment from customers.

Large future benefits can be obtained especially in our Express Road segment based on utilizing new technologies. We are exploring and analyzing potential AI based solutions, which will lead to an improved route planning resulting in improved vehicle utilization. An agreement has been made with one of our large road customers, where a number of electrical vehicles will be introduced in the coming months. In parallel, an in-depth analysis is made within our most dense distribution areas, as increased EV range and load capacity provides more opportunities in the future. Our participation in the drone project will potentially lead to further improvement of the cost efficiency for our first mile-last mile and add new services to our product portfolio.

In the beginning of October Jetpak announced the acquisition of Budab AB, which is based in Stockholm-Arlanda.
BudAB will be an important addition to Jetpak’s network and market position both in central Sweden and specifically at Sweden’s most important airfreight hub at Arlanda.
Our ambition of continued M&A growth remains a strong focus area, and we are currently in negotiations with a M&A candidate,
which will further improve our Nordic market position. It is our ambition to reach a conclusion during December.

In general, we have experienced continued market and revenue volatility.
The interim reports from major multinational logistics companies underline the challenging market conditions,
as their latest reports mostly showed declining volumes, rates and profitability levels.

Nordic and European GDP growth is also expected to be weak in the coming quarters, which could potentially result in increased price pressure and lower demand for logistics solutions.

We therefore continue to carefully monitor the development, and we will continuously try to minimize any potential negative impacts by further ramping up on our strategic initiatives, namely:

· Realizing M&A opportunities to strengthen our market position and offering as well as obtaining operational and commercial scale benefits.

· Introduce new services to ensure organic growth as well as strengthening our offering and margins.

· Optimize cost efficiency by enhanced and automated technology driven solutions as well as through improved capacity utilization.

Our cost efficiency program includes initiatives such as staff reductions and stricter policies related to indirect and direct costs. Road supplier models are being further optimized towards improved capacity utilization and hence reduced unit costs.

New commercial products and services are introduced focusing on meeting demand for special solutions on temperature controlled and spare part logistics. In addition, our pricing strategy is being adjusted in line with changing market conditions and our own cost structure.

Further initiatives are defined and will be exercised, if proven necessary during coming months.

Based on the market situation, we expect the rest of 2023 to remain challenging.
The negative growth is expected to continue in the coming quarter, but we anticipate an improved adjusted EBITA versus last year thanks to our cost efficiency initiatives.
Despite the current macroeconomic driven challenges, we maintain our long-term targets for organic growth and a continuously improved 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) 20 089 63 88
Norway: +47 2 156 3319
Finland:+358 9 2319 54 36
Denmark: +45 3272 9274
Germany: +49 (0) 89 2444 32976
Belgium: +32 (0) 2792 0435
Netherlands: +31 (0) 20794 8428
USA: +1786496 5601
UK: +44 (0) 33 0551 0202
Note that any toll free numbers can only be reached from within each county.
PIN code (same code for all the above dial-in numbers): 816 00 49 #
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.
This information was submitted for publication, through the contact person mentioned below, on 28 November 2023 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