EAC Interim Report Q1 2014 – Company announcement No. 9/2014

| Source: Santa Fe Group



Performance in this low-season quarter was impacted by a strong growth in relocation services in all regions, most notably in Europe, and Santa Fe Group furthermore continued to add new international corporate customers to the portfolio. Business in Asia was affected by a continuation of the drop in inbound relocations seen from Q4 2013, while performance in Australia improved significantly.  


  • EAC Group Revenue of DKK 529m (568m) was unchanged in local currencies, but decreased 6.9 per cent measured in DKK.


  • Santa Fe Group EBITDA improved by 52.5 per cent in local currencies to DKK 7m (7m) but was on par measured in DKK. The EBITDA margin was 1.3 per cent (1.2 per cent). 


  • EAC Group EBITDA amounted to DKK -2m (DKK -1m) and was affected by one-off costs to the reorganization of the head office, which will be by absorbed by savings in the remainder of the year. 


  • Full-year outlook is unchanged: Consolidated revenue is expected in the range of DKK 2,355 – 2,550m. EBITDA is expected in the range of DK 105 - 125m of which the Santa Fe Group EBITDA is expected to be in the range of DKK 135 - 155m while Group costs are expected at approx. DKK 30m.


  • Subsequent events: The divestment of Plumrose was completed on 8 April 2014 (announcement no 7/2014). An extraordinary dividend of DKK 16 per share totaling approx. DKK 200m was paid on 15 April 2014 (announcement no 8/2014).



Commenting on the Q1 results, CEO & President Niels Henrik Jensen says:

“We are seeing a number of green shoots across the business, which support our expectation of a new momentum in Santa Fe. We have continued to add important global contracts to our portfolio and our drive to build relocation services in Europe is showing strong results with a 30 per cent growth in Q1 alone. Australia, which has been hard hit by two years of business recession and low consumer confidence, is turning a corner  and our efforts to adapt our cost structure to the current activity level have driven a strong improvement of results.  It is disappointing that in the translation to DKK most of that improvement was concealed by a 17 per cent depreciation of the AUD during the same period. In Asia low activity in inbound relocations affect our moving services, but we continue to grow our higher-margin business. Financially, the overall results were on plan, but reflect that Q1 is a low-season quarter. As we enter the high season during the northern hemisphere summer period, we expect to see significantly increased activity and improved performance, driven by the many new corporate customers we have signed over the past year. Meanwhile, we will maintain intensive marketing and sales efforts to win more corporate customer contracts and continue expanding our relocation services in all markets.”



For further information, please contact:

Niels Henrik Jensen                

President and CEO



The East Asiatic Company Ltd. A/S

East Asiatic House

20 Indiakaj

DK-2100 Copenhagen Ø


CVR-no. 26 04 17 16

Telephone +45 3525 4300

E-mail: eac@eac.dk

For further information on the EAC Group please refer to: www.eac.dk