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Jetpak Top Holding AB (publ):Interim Report 1 January – 31 March 2022

First quarter: 1 January – 31 March 2022

· Total revenue increased by 19,4 % to 299 107 (250 430) TSEK
· Organic growth amounted to 10,2 % (7,2 %)
· Gross margin amounted to 31,2 % (29,6 %)
· Operating profit amounted to 30 231 (21 847) TSEK
· Adjusted EBITA amounted to 30 231 (22 555) TSEK
· Net income amounted to 21 583 (14 419) TSEK
· Basic earnings per share amounted to 1,80 (1,20) SEK
· Diluted earnings per share amounted to 1,78 (1,19) SEK
· Cash flow from operations amounted to 13138 (-5 272) TSEK
· Cash and cash equivalents amounted to 127 184 (80 019) TSEK
· Net debt in relation to adjusted EBITDA R12: 0,9 (1,6)

CEO comments

Jetpak had a strong first quarter with a total growth of 19,4 % and with an underlying organic growth of 10,2 %.
Total revenue amounted to TSEK 299 107 and the operating profit to TSEK 30 231 – a profit increase over last year by 38 %.
The operating margin amounted to 10,1 %.

CTS Express’ figures are part of our consolidated financial statement and contributed by more than MSEK 14 of revenue and TSEK 860 of operating profit during the quarter.

Russia’s war in Ukraine have had an indirect impact on Jetpak with increased costs, as the increased cost for fuel for impacted not only our drivers and franchisees, but also our airline suppliers. Surcharge and pricing initiatives were introduced to neutralize fuel cost increases, which also included the introduction of a general index-based road Fuel & Sustainability surcharge effective from the 1st of April. The sustainability part of the surcharge covers the increased use of hydrogenated vegetable oil (HVO) in the diesel fuel.

Express Air segment reported a revenue of MSEK 154,8, which corresponded to a growth of 37 % and with a gross margin of 40,5 % (39,5) %.
Main driver was a strong performance primarily in Europe, Finland and Denmark. Especially Europe has been fueling growth with up trading large accounts as well increasing ad hoc business and Denmark benefitted from the acquisition of CTS Express and from an increasing air capacity. Finland showed a strong post-pandemic pick-up and continued high trading on ad-hoc products. Continued supply chain disruption impacted logistic and production processes of large industrial accounts and fueled growth for our fastest solutions.

Domestic main markets were however on a lower growth path development as Sweden is still affected by lack of Air capacity and Norway has had  less vaccine distribution during the quarter.

Express Road segment reported revenue of MSEK 136,9, which corresponded to a growth of 6,2 % and with a gross margin of 19,6 (19,0) %.
Reopening of the Nordic markets decreased the demand for home deliveries for our retail customers, which put pressure on our Express Road growth especially in Sweden, which came in flat between the years. Comparison to previous year also included positive effects from the distribution of tests and covid-19 vaccines especially in Norway, which also came in flat. Net growth for the segment came from Denmark thanks to new customer accounts and up trading.
Supply chain disruptions during the quarter further supported our growth of ad-hoc products within the segment.

We continued our strong focus on sustainability during the quarter and continued exploring various means of providing more CO2 friendly supply chain solutions, which included use of HVO-fuel and projects related to increased use of electrical vehicles within densely populated  areas. The development of drone technology is being carefully monitored, and we are well prepared to adjust our delivery model once drone technology is commercially available for courier services.

Overhead cost ratio remained stable during the quarter as our ramp up has been carefully balanced with increasing activity level and revenue growth.

Available air capacity increased during the quarter, but remained significantly below pre-pandemic levels, as our main airline partners continued struggling with profit improvement programs and lack of staff. Many European airlines have been announcing reduction of planned capacity during summer months due to staff shortages. Our main supplier SAS expects to reduce their planned capacity by 5 %. Any such capacity reductions are however not expected to have any significant impact on Jetpak’s main markets Sweden and Norway, as potential need for complimentary capacity can be obtained from other suppliers.

Our latest acquisition, the Danish based CTS Express, has developed satisfactory during the quarter, and further fueled our efforts to ramp up our M&A activities. Our focus on M&A activities has intensified during the quarter with focus on narrowing down criteria for ideal acquisition candidates. A pipeline is currently being established and initial talks are taking place with a few potential targets.

A strong first quarter and good business momentum provides expectations of continued satisfactory performance coming quarters. Macro-economic development with increasing inflation and interest levels can potentially influence growth and will therefore be carefully monitored to ensure mitigating actions on both cost and pricing.

First quarter is traditionally somewhat weak, but a strong performance and our expectation of continued growth is underlining our ability to reach our long-term growth and EBITA targets.

The Annual General Meeting will be conducted on the 9th of June. Due to continued risks from covid-19, the meeting will be conducted only by advance voting pursuant to temporary legislation and thus without any physical presence. All necessary material for the Annual General Meeting is available on our IR website, www.jetpakgroup.com, including the Group Annual Report and Sustainability report for 2021.

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): 4143679#

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, e-mail: info@fnca.se, telephone:
+46(0) 8 5280 03 99.

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

For further information
Håkan Mattisson, CFO
Phone: +46 85558 5220
e-mail: ir@jetpak.com
About Jetpak
Jetpak is the simplest 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