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Jetpak Top Holding AB (publ):Year-end report 1 January – 31 December 2022

Fourth quarter: 1 October – 31 December 2022

· Total revenue increased by 16,5 % to 320 778 (275 319) TSEK
· Organic growth amounted to 6,4 % (8,5 %)
· Gross margin amounted to 32,3 % (31,3 %)
· Operating profit amounted to 29 131 (31 698) TSEK
· Net income amounted to 21 570 (22 828) TSEK
· Basic earnings per share amounted to 1,77 (1,90) SEK
· Diluted earnings per share amounted to 1,77 (1,89) SEK
· Cash flow from operations amounted to 46 453 (32 326) TSEK
· Cash and cash equivalents amounted to 178 646 (131 666) TSEK
· Net debt in relation to adjusted EBITDA R12: 0,2 (0,9)
· This quarter’s cost for the long-term incentive program amounted to

-6918 (-2 171) TSEK

Full year: 1 January – 31 December 2022

· Total revenue increased by 21,4 % to 1253 147 (1032 615) TSEK
· Organic growth amounted to 11,4 % (13,6 %)
· Gross margin amounted to 31,3 % (30,5 %)
· Operating profit amounted to 122 215 (102 751) TSEK
· Net income amounted to 86 922 (70 212) TSEK
· Basic earnings per share amounted to 7,13 (5,85) SEK
· Diluted earnings per share amounted to 7,13 (5,80) SEK
· Cash flow from operations amounted to 127 033 (89 854) TSEK
· This year’s cost for the long-term incentive program amounted to
-13417 (-4 325) TSEK
· The Board of Directors proposes that no dividend will be paid
for the financial year 2022

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

CEO comments
2022 turned out as yet another record year for Jetpak with a total revenue of 1253147 TSEK and with an all-time high operating profit of 122215 TSEK.
Total revenue for the fourth quarter amounted to 320 778 TSEK, equal to a growth of 16,5%.
The operating profit, as well as the adjusted EBITA, both amounted to 29 131 TSEK, corresponding to an operating margin of 9,1 %. The quarter’s profit was affected by cost accruals for the long-term incentive program amounting to 6 918 (2171) TSEK, something which affected the quarter’s operating profit negatively by 2,2 percentage points.
The Express Air segment reported a revenue of 161,5 MSEK, corresponding to a growth of 26,0 % and with a gross margin of 38,6 (40,5) %.
Largest growth driver was Europe (Netherland and Belgium), thanks to increasing activity levels for larger customers within both systemized and ad-hoc services. The Segment’s growth was also supported by Denmark mainly from the acquired CTS business, which contributed with 18,6 MSEK during the quarter.
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 149,2 MSEK, corresponding to a growth of 7,4 % and a gross margin of 21,3 (19,9) %.
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 862 TSEK due to some lost customers. An improvement plan has therefore been launched 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.

Market growth continued steadily 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.
Sustainability work within the framework of the UN’s Global Compact Program became during the quarter an even more integrated part of our daily work and we have continuously during 2022 intensified our initiatives within CSR/ESG. Our focus has been on 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, drivers have been educated in environmentally friendly driving. 

New technology is strongly linked to the logistic business’ CO2 footprint and one such sector is the drone technology. Drone development is closely monitored by Jetpak, and we participate in early-stage tests, as drones likely will become a future integrated part of our “last mile delivery”. 

Jetpak has during the quarter conducted the annual employee survey with focus on motivation and leadership index. Despite challenging macroeconomic and geopolitical challenges, ratings were above both expectations and industry average.
Customer satisfaction ratings also remained on a stable high level during 2022.

Merger & Acquisitions have in recent years added to our growth and provided synergies.
Our acquisition in Europe as well as our most recent acquisition in the beginning of 2022,
CTS Express in Denmark, both showed strong development in 2022 and are expected to add further value during the coming year.
We have been building an interesting M&A pipeline and we are currently in dialogue with a handful of selected prospects. We expect to enter into more specific negotiations when seller expectations mature – in line with the current macroeconomic situation and uncertainty.

During this autumn management and board reviewed our strategy and overall targets. It was decided to continue the current growth strategy based on organic growth in terms of new products and services plus geographic expansion of the current product portfolio – combined with M&A growth. Furthermore, we will have a continued strong focus on improving our cost efficiency –
in order to be well prepared for a more volatile economy during coming quarters.

Our growth expectations for 2023 are moderate – based on uncertain macroeconomic external factors such as high inflation and high interest rates. Increasingly volatile air capacity and less favorable air schedules are also restraining growth, something which is a key discussion area with our largest linehaul providers right now. 

The further development is carefully monitored, and contingency plans are in place to minimize any potential negative impact on our business.

Despite operational disruptions and macroeconomic challenges, we maintain our long-term targets for organic growth and to continuously improving our adjusted EBITA.

Based on our ambition of an M&A accelerated growth, the company’s Board of Directors do not propose any dividend to the Annual General Meeting in June 2023.

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:   020-089 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): 62 51 468 #

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 February 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