EAC Interim Report Q3 2014 – Company announcement No. 11/2014


SOLID GROWTH IN THE Q3 PEAK SEASON

Q3 showed increased activity during the peak season for international relocations in the Northern hemisphere. EMEA and Australia recorded growth rates of 11 per cent and 10 per cent respectively, while Asia achieved 5 per cent growth in local currencies. All business lines contributed to growth, but progress was particularly strong in the higher-margin Relocation Services, inclusive visa and immigration. Q4 is anticipated to be negatively impacted by overall market decline in Australia and continued margin pressure in Moving Services in EMEA. 

  Highlights from Q3:

  • EAC Group revenue grew by 9.1 per cent in local currencies and 10.8 per cent in DKK to DKK 782m (DKK 706m).
  • EAC Group EBITDA before special items was DKK 68m (DKK 64m). 
  • The Santa Fe Group achieved an EBITDA of DKK 75m (DKK 71m) corresponding to an EBITDA margin of 9.6 per cent (10.1 per cent).
  • Special items related to the restructuring of the parent company amounted to DKK 15m (DKK 0m).

  Highlights from the first 9 months:

  • EAC Group revenue grew by 3.6 per cent in local currencies and 0.7 per cent in DKK to DKK 1,848m (DKK 1,835m).
    EAC Group EBITDA before special items was DKK 82m (DKK 70m). Special items amounted to around DKK 18m (DKK 0m). 
  • The Santa Fe Group EBITDA improved by 13.0 per cent in local currencies and 8.6 per cent in DKK to DKK 101m  (DKK 93m). EBITDA margin was 5.5 per cent (5.1 per cent) and was particularly driven by a more favourable product mix.  
  • Disregarding one-off income in H1 2013, Santa Fe EBITDA increased by DKK 14m or 21.3 per cent in local currencies.  

  Full-year outlook is adjusted:

The full-year outlook is adjusted: Revenue is now expected at DKK 2,475m-2,550m (previously: DKK 2,355m-2,550m) following the increased activity levels in all regions in Q3 2014. However, Santa Fe’s operating result is expected to be challenged by a material unforeseen decline in Australian consumers’ demand in Q4 2014 and continued margin pressure in Moving Services in EMEA. Santa Fe Group EBITDA is now expected at DKK 115m–125m (previously: DKK 135m–155m), while EAC Group EBITDA before special items is expected at DKK 90m–100m (previously: DKK 105m-125m). By comparison, EAC Group EBITDA amounted to DKK 68m in 2013. 

 

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

“The Santa Fe Group has improved its profitability for three consecutive quarters. The transformation of the business is largely on track with sustained growth in higher-margin services and increased contribution from the large corporate tenders that have been won. It is frustrating though to see deteriorating market conditions in Australia and continued weakness in EMEA hampering the overall progress. The revised full-year outlook still represents progress over 2013”   

 

 

Comparative figures for Q3 2013 and 9 months 2013 are stated in brackets. All currency effects refer to translation effects from reporting currencies unless otherwise stated.

 

For further information, please contact:

Niels Henrik Jensen

President and CEO

Telephone: +45 3525 4300


Attachments

EAC Q3 2014.pdf