Company announcement no. 2/2020
Growth held back by Brexit
• Win23 strategy initiatives set to increase EBITDA in 2020
• Brexit uncertainty lowered volumes in Q4 2019 and also expected to impact 2020
• Net impact expected to be positive – 2020 EBITDA outlook of DKK 3.5-3.9bn (2019: DKK 3.6bn)
Q4 2019
• Revenue up 1% to DKK 4.0bn
• Lower UK ferry volumes reduced North Sea and Channel results
• Mediterranean’s result decreased by non-comparable cost items
OUTLOOK 2020
• Around 4% revenue growth
• EBITDA-range DKK 3.5-3.9bn (2019: DKK 3.6bn)
• Investments of around DKK 2.3bn (2019: DKK 2.7bn)
”We see continued headwind in 2020. Most importantly, we have to be cautious on the UK market outlook due to uncertainty about the Brexit outcome. On the positive side, our strategic initiatives are moving forward as planned and therefore I still expect earnings to grow in 2020,” says Torben Carlsen, CEO.
| KEY FIGURES | ||||||
| DKK m | 2019 | 2018* | 2019 | 2018* | ||
| Before special items | Q4 | Q4 | Change, % | FY | FY | Change, % |
| Revenue | 4,008 | 3,955 | 1.3% | 16,592 | 15,717 | 5.6% |
| EBITDA | 771 | 847 | -8.9% | 3,633 | 3,589 | 1.2% |
| EBIT | 257 | 427 | -39.8% | 1,751 | 1,965 | -10.9% |
| Profit before tax | 181 | 422 | -57.1% | 1,472 | 1,743 | -15.6% |
| * Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis | ||||||
Revenue increased 1% to DKK 4.0bn in Q4 and increased 6% to DKK 16.6bn for the full-year 2019. EBITDA before special items decreased 9% in Q4 to DKK 771m and increased 1% to DKK 3,633m for the full-year 2019.
The UK market for freight and passengers slowed further in Q4 due to Brexit uncertainty. This lowered earnings for several business units, particularly Channel and North Sea.
Mediterranean’s revenue development was ahead of expectations in Q4 but a change in the accounting for ferry maintenance and spare part costs added operating costs of DKK 48m. Moreover, port congestion in Trieste lowered the efficiency of train services. More details on page 8. Operational improvements in the route network are on track.
Logistics Division increased EBITDA 17% in Q4 as contract logistics in UK & Ireland and other activities across the division continued to perform well despite the UK slowdown.
Outlook 2020
The key earnings driver of the 2020 outlook is a positive impact from the Win23 strategy initiatives while continued uncertainty about Brexit is expected to have a negative impact. Revenue is expected to grow around 4% and EBITDA before special items is expected to be within a range of DKK 3.5-3.9bn (2019: DKK 3.6bn).
In the above, all comparative 2018 numbers, including the table, are restated to IFRS 16 on a proforma and unaudited basis.
Read the Q4 2019 Interim and Full-year Report here:
https://www.dfds.com/en/about/investors/reports-and-presentations
6 February 2020. Conference call today at 10.00am CET
Access code: 66655871# Phone numbers to the call: DK +45 35445577, US +1 631 913 1422, UK +44 333 300 0804
Contact
Torben Carlsen, CEO +45 33 42 32 01
Karina Deacon, CFO +45 33 42 33 42
Søren Brøndholt Nielsen, IR +45 33 42 33 59
Gert Jakobsen, Communications +45 33 42 32 97
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Attachment
