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Jetpak Top Holding AB (publ):Interim report 1 January – 31 March 2023

First quarter: 1 January – 31 March 2023

· Total revenue increased by 4,7 % to 313 123 (299 107) TSEK
· Organic growth amounted to 2,9 % (10,2 %)
· Gross margin amounted to 30,6 % (31,2 %)
· Operating profit amounted to 30 677 (30 231) TSEK
· Net income amounted to 24 706 (21 583) TSEK
· Basic earnings per share amounted to 2,03 (1,80) SEK
· Diluted earnings per share amounted to 2,03 (1,78) SEK
· Cash flow from operations amounted to -2 706 (13 138) TSEK
· Cash and cash equivalents amounted to 153 079 (127 184) TSEK
· Net debt in relation to adjusted EBITDA R12: 0,4 (0,9)
· Cost accrual for the long-term incentive program amounted to -2 210 (-2 170) TSEK

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

CEO comments
Total revenue for the first quarter amounted to 313 123 TSEK, equal to a growth of 4,7 %.
The operating profit, as well as the adjusted EBITA, amounted to 30 677 TSEK, corresponding to an operating margin of 9,8 %. This quarter’s profit was affected by cost accruals for the long-term incentive program amounting to 2 210 (2170) TSEK, which affected the quarter’s operating profit negatively by 0,7 percentage points.
The Express Air segment reported a revenue of 164,7 MSEK, corresponding to a growth of
6,4 % and with a gross margin of 38,2 (40,5) %.
Largest growth driver within the Air segment was Europe (Netherland and Belgium), thanks to increasing activity levels for larger customers within both systemized and ad-hoc services.
The segment’s gross margin decreased due to the increasing revenue from large European customers with lower average margins.
Available air capacity remained a challenge due to the continued financial distress for many airlines, something which also were contributing to SAS’ ongoing Chapter 11 process. This situation resulted into a higher volatility in terms of network and capacity changes, which continued to have some negative impact at specific customers flows, especially for the Swedish market.
The Express Road segment reported a revenue of 141,3 MSEK, corresponding to a growth of
3,2 % and a gross margin of 20,3 (19,6) %.
The growth was mainly driven by larger Swedish B2B and B2C accounts with demand for both systematic and ad-hoc services. Also, Finland showed growth thanks to delayed luggage distribution business. Growth for the segment was additionally positively affected by the introduction of “Fuel & Sustainability surcharge” from April 2022, which was introduced to neutralize cost increases. Denmark Road had a negative growth of 3 MSEK due to downtrading and lost customers. An improvement plan is in place to improve both revenue and margins for the Danish Road business. 
The Express Road segment’s gross margin improved slightly thanks to a good customer mix as well as price increases.

Revenue growth continued for both segments during the quarter, even though our Express Road segment had a more modest growth mainly due to increased competition as well as customer loss in Denmark.
Competition within our Express Air segment remained stable, even though the ad-hoc business was slightly impacted by the volatile capacity development.
Jetpak’s ESG strategy is built upon on our long-term commitment to environment 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.
Sustainability work within the framework of the UN’s Global Compact Program has during this period focused on continued supply chain optimization based on enhanced capacity utilization as well as CO2 reducing activities with consumption of HVO fuel and projects to increase the use of electric vehicles in densely populated areas. Furthermore, the environmentally friendly driving training for drivers have continued during the quarter.
Our ESG strategy is based on transformative targets driving our priorities, decisions and actions. It is our intention to provide an annual reporting of our selected targets within Environment, Social and Governance.
Jetpak have engaged with a number of participants in the drone industry supply chain. The purpose of the engagement is to participate in the development of industry standards and create a strong position once the industry will expand and become a standard alternative for delivery within certain market segments. Pilot projects are currently ongoing in Sweden with Jetpak’s participation, and we are well prepared to integrate drone deliveries in our supply chain solutions, as soon as they are operationally and commercially viable.

M&A remained an important part of our growth strategy and during the quarter we have intensively been expanding our Nordic and European pipeline and entered detailed discussions with companies. These discussions have initially resulted in our most recent acquisition of the Malmoe based courier company Budakuten with an annual turnover of 25,6 MSEK and operating profit of  3,8 MSEK. Budakuten has positioned itself as a strong player in express logistics in Southern Sweden and will provide a valuable contribution to Jetpak growth strategy.

The initial acquisition amounted to 10 MSEK, with an additional purchase price of max 15 MSEK, depending on results during 2023 – 2025. The acquisition was paid in cash.
We will intensify our efforts to pursue acquisitions of interesting M&A candidates during coming quarters, as valuations are increasingly attractive driven by current market conditions and interest levels.

During this quarter we have experienced an increasing month-to-month revenue volatility combined with periodic downtrading on larger accounts. Recent interim reports from large multinational logistic companies underlines our concerns, as reports mostly show significantly decreasing volumes and profitability driven by both air and road segments. Nordic and European GDP growth is furthermore expected to remain modest during coming quarters, which potentially leads to increasing price pressure as well as demand for deferred logistic solutions.

Based on the current market conditions and uncertainty we conservatively expect a slightly negative to zero organic growth in coming quarters.

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

· 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.

Despite operational disruptions and challenging market conditions, we maintain our long-term targets for organic growth and continuously improved 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
Denmark: +45 3272 9274
Germany: +49 (0) 69 6677 75757
France +33 (0) 1 7099 4742
Belgium: +32 (0) 2792 0435
Netherlands: +31 (0) 20708 5074
USA: +1 786496 5601
UK: +44 (0) 33 0551 0202
PIN code (same code for all the above dial-in numbers): 27 43 124 #

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 25 May 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