2023 was challenging for Waberer’s due to shifts in industrial production and consumer trends, particularly in Western Europe, Hungary and Poland. Both industrial production and non-food retail sales declined in these core markets, according to the newly published financial report.
However, the Hungarian logistics company navigated these headwinds by focusing on customer segments less impacted by the overall economic slowdown. This strategy resulted in a 4.6% year-on-year increase in group sales revenue, reaching €710.9 million in 2023.
The company also achieved record highs for both EBIT (up 17% to €42.8 million) and EBITDA (up 14.8% to €95.6 million). Waberer’s net profit also saw a significant jump of 53.6% to €29.7 million.
The fourth quarter of 2023 continued the positive trend with a 6.4% increase in sales revenue to €183.7 million. While EBIT and EBITDA decreased slightly compared to the previous quarter, reaching €9.3 million and €23.1 million respectively, the company’s profit after tax did experience a more significant decline.
Segment breakdown
- International Transportation Services (ITS): sales revenue rose 3.3% to €429.8 million, while EBIT decreased by 9.7% to €8.9 million. The segment faced increased price competition and longer factory shutdowns, but the strong focus on key accounts ensured stable demand.
- Contract Logistics (RCL): sales revenue (excluding inter-segment items) increased 2.8% to €198.7 million, with EBIT growing 37.3% to €15.3 million. This growth stemmed from higher income from warehousing and production logistics activities, offsetting a slight decrease in distribution activities. Acquisitions in the automotive and petrochemical sectors further boosted the segment’s performance.
- Insurance: sales revenue in euros grew by 17.7% to €82.4 million, with EBIT reaching €18.6 million. The insurance segment expanded its customer base and benefited from the high-interest rate environment.
Despite the challenging market conditions, Waberer’s board of directors proposed a dividend of HUF 120 per share at the upcoming annual general meeting, exceeding the previous year’s payout. This translates to a dividend yield of 3.3% based on the current share price.
Looking ahead, Waberer’s has set ambitious goals for 2024. The company aims to become the leading complex logistics service provider in Central and Eastern Europe by 2027, with a projected doubling of sales revenue and EBIT compared to 2022 figures. Significant investments in warehouse development and strategic acquisitions, including the purchase of PSP (Petrolsped) Group and a majority stake in MDI distribution company, are expected to contribute to achieving these goals.
For 2024, Waberer’s forecasts sales revenue close to €800 million and an EBIT exceeding €40 million, representing a potential 12.5% increase in sales revenue but a relatively flat EBIT performance compared to 2023. While the company’s stock price has underperformed the broader market this year, Waberer’s remains optimistic about its future prospects.