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Waberer’s second quarter and half-year 2018 financial report

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Waberer’s CEO – Ferenc Lajko.j

Double-digit revenue growth with temporary margin pressure

Budapest, August 8, 2018  WABERER’S INTERNATIONAL Nyrt., the European leader in full truckload (FTL) transportation, reports its financial results for the three months ended June 30, 2018.

Highlights Q2 2018

  • Revenue increased by 17% year-on-year in the second quarter of 2018 to EUR 185 mn, in line with long-term growth targets
  • International Transportation Segment increased its share in the European FTL market as revenue grew by 19% supported by 7% higher prices and 12% volume and acquisition effects
  • Revenue in the Regional Contract Logistics segment increased by 9%, driven by growing warehouse capacity and higher prices, on track to further increase its market share and meet targets
  • Recurring EBITDA decreased by 14% to EUR 19 mn
  • In the International Transportation Segment, recurring EBITDA was 14% lower as a result of cost pressures and a temporary decrease in truck utilisation, resulting in a lower margin
  • EBITDA declined by 18% in Q2 2018 in the Regional Contract Logistics segment, mainly due to an especially strong second quarter last year, year-to-date change is -2%
  • While the labour market situation was challenging on the wage side the company successfully managed its labour force
  • Recurring EBIT decreased to EUR 3.1 mn and recurring net income declined to EUR -0.1 mn
  • Net leverage increased to 3.4x recurring EBITDA due to a seasonal increase in truck procurement

Key figures1 (EUR mn unless otherwise stated)

Q2 2017 Q2 2018 Increase (decrease) H1 2017 H1 2018 Increase (decrease)
Revenue 158.0 184.5 16.8% 313.2 363.4 16.0%
EBITDA (recurring) 22.2 19.0 (14.5%) 40.4 37.1 (8.0%)
EBIT (recurring) 8.9 3.1 (64.7%) 14.9 6.2 (58.4%)
Net income (recurring) 4.8 (0.1) 9.2 0.1 (98.9%)
EPS (EUR) 0.19 (0.01) 0.48 (0.04)
EBITDA margin (recurring) 14.0% 10.3% (3.8 pp) 12.9% 10.2% (2.7 pp)
EBIT margin (recurring) 5.6% 1.7% (3.9 pp) 4.8% 1.7% (3.1 pp)
Net income margin (recurring) 3.1% 0.0% (3.1 pp) 2.9% 0.0% (2.9 pp)
Average number of trucks 3 787 4 485 18.4% 3 734 4 394 17.7%

 For the definitions of non-IFRS measures and key performance indicators not included in this Report, please see the Second Quarter 2018 Financial Report available at the Company website at http://www.waberers.com/en/investors/result-centre.

Waberer’s HQ’s

CEO comment:

Ferenc Lajkó, CEO of WABERER’S INTERNATIONAL Nyrt. commented: “The second quarter of the year was characterised by double-digit growth in revenue, driven by Waberer’s continuous gain in market share. At the same time, profitability decreased across profit lines as the Company faced headwinds during the quarter. The repricing strategy initiated by labour market pressures and recent hikes in the fuel price led to shifts in the transportation portfolio resulting in lower utilisation in both international full truck load services and regional contract logistics.

These developments resulted in a temporary margin pressure. The Group has an extensive network of human resource capabilities covering the CEE region which is an advantage when most competitors face driver shortage problems. Concerning fuel costs, until the price effects are fully passed on, we manage to mitigate unfavourable price effects by savings from lower consumption and procurement scale.

Regarding transportation fees, the Company has managed to lock in higher prices in our contracts in the first half of the year, which should have a favourable effect in the autumn which is traditionally a high season for our business. The management has initiated several measures to enhance how the Group adapts to a change in the transportation mix that we experienced in the past months, mainly by fine-tuning both our planning engines and internal processes between our sales, planning, and operational functions. These initiatives should lead to improvement in the kilometre performance of the fleet and I see a good opportunity to raise utilisation and operating efficiency above previous levels.

With that in mind, I reiterate management’s expectation of double-digit revenue growth and a slightly decreasing recurring EBITDA performance in 2018 compared to 2017.”

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