This release is a summary of
The year 2023 was a record-breaking year for the group. The net sales for 2023 amounted to
July-
** Net sales for July-December increased by 40 per cent to
** Comparable operating result amounted to
** The comparable operating margin increased slightly compared to January-June (16.3%).
** Cash flow from operating activities increased to
January-
** Net sales for 2023 increased by 4 per cent to
** Reported operating result for 2023 amounted to
** Comparable operating result without non-recurring items amounted to
Board of Directors' proposal for profit distribution
The Board of Directors proposes to the Annual General Meeting repayment of equity from the reserve for invested unrestricted equity, at most
Financial guidance
The group estimates that its net sales and comparable operating result for 2024 will increase compared to 2023. The projected growth in net sales and operating result is based on the growing rail operations in the group's market areas, energy raw material shipping and improved profitability of the Cargo business.
The full-year forecast is supported by our view of the development in net sales in the first quarter of 2024 compared to the comparison period, as well as our forecast of comparable operating result for the first quarter.
Key figures 1.1.-31.12.2023 EUR million | 1.1.- | 1.1.- |
Net sales | 128.0 | 122.5 |
Operating result | 33.1 | 3.4 |
Operating result, % | 25.9% | 2.8% |
Comparable operating result | 21.5 | 6.9 |
Comparable operating result, % | 16.8% | 5.6% |
Result for the period | 23.3 | 1.5 |
Return on equity % | 66.5% | 5.9% |
Gearing % | 77.6% | 119.8% |
Interest-bearing net debt / EBITDA | 0.93 | 4.65 |
Earnings per share, undiluted (E) | 0.18 | -0.01 |
Cash flow from operating activities | 25.4 | 5.2 |
Key figures 1.7.- EUR million | 1.7.- | 1.7.- |
Net sales | 71.2 | 50.8 |
Operating result | 24.2 | 1.0 |
Operating result, % | 33.9% | 2.0% |
Comparable operating result | 12.3 | 2.2 |
Comparable operating result, % | 17.2% | 4.4% |
Result for the period | 17.2 | -0.3 |
Cash flow from operating activities | 4.8 | 0.4 |
Olli Pohjanvirta, President and CEO: The record result for 2023 is a demonstration of our group's expertise and excellent adaptability
Despite the challenging operating environment and geopolitical uncertainties in 2023, we continued to grow profitably. The group's net sales in July-December increased by 40% to
The group achieved in 2023 the best comparable operating result in its history,
The growth in net sales and operating result is based on the increased volumes of the rail business and Baltic operations, fast and targeted organisational efficiency measures, successful sales efforts and increased international recognition. In addition to the strong competence and commitment of the employees, their implementation capacity has been particularly important.
At the beginning of the review period, the group strengthened its position as a comprehensive player and developer of the railway business by acquiring
In addition to a significant increase of
Towards the end of the year, the escalation of the situation in the
The Cargo and Multimodal Forwarding business volumes decreased in the second half of the year due to the decline in the Finnish economy and the resulting slowdown in imports and exports. The complex licensing processes related to the deliveries of energy raw material were completed across
In 2024, our strategy-based investments in digitalisation and sustainability will continue. During H1, we will open a customer portal, which will increase transparency and efficiency for our customers and, thereby, improve the overall customer experience. Digitalisation also supports our group's green transition.
In rail logistics, we will continue to grow in
Although geopolitical uncertainties weaken the outlook for global economic growth, they increase the need for more functional logistics and alternative modes of transport during crisis and disruptions. Also growing logistics emission reporting requirements increase the need for companies to transfer cargo to lower-emission rail transports. We believe in sustainable growth in the demand for rail logistics and related multimodal transport, as efficient, flexible and environmentally friendly logistics have a major impact on companies' competitiveness in international trade.
I believe that in the current market situation, we can best increase equity value by paying attention to profitability and cash flow. Thus, we are ready, as the market picks up, for strong growth, both organically and by acquisitions.
I am very happy about our achievements in 2023 in the challenging market. I would like to express my gratitude to our dedicated employees for their excellent input and thank our customers for their support and trust.
Outlook
We believe that the demand for rail freight will increase in the group's target market, which is supported by the increase of the importance of environmental values in decision-making. Continued high interest rates and scarce financing will support the customers' need for faster turnover of working capital and more accurate planning of deliveries, which will contribute to the demand for
The strong Cargo business will be developed further, and we see opportunities for growth in both
Group's key figures
Key figures for business | 2023 | 2022 |
Net sales, | 127,951 | 122,511 |
Change in net sales, % | 4.4% | -13.3 % |
Operating result (EBIT) | 33,091 | 3,408 |
% of net sales | 25.9% | 2.8 % |
Result before taxes, | 29,342 | 1,925 |
% of net sales | 22.9% | 1.6 % |
Result for the financial year, | 23,273 | 1,472 |
% of net sales | 18.2% | 1.2 % |
Return on equity (ROE), % | 66.5% | 5.9 % |
Return on investment (ROI), % | 42.8% | 6.9 % |
Equity ratio, % | 41.8% | 34.7 % |
Gearing, % | 77.6% | 119.8 % |
Gearing % excluding IFRS 16 | 56.5% | 80.0 % |
Interest-bearing net debt, | 35,599 | 28,928 |
Interest-bearing net debt excluding IFRS 16, | 25,989 | 19,431 |
Interest-bearing net debt/EBITDA (12-month, rolling) | 0.93 | 4.65 |
Cash flow from operating activities, | 25,373 | 5,232 |
Gross investment on fixed assets, | 1,121 | 422 |
% of net sales | 0.9% | 0.3% |
Balance sheet total, | 113,771 | 69,678 |
Average number of employees | 196 | 141 |
Wages and salaries paid, | 13,571 | 8,262 |
Share key figures | ||
Earnings per share (EPS), EUR, undiluted | 0.18 | -0.01 |
Earnings per share (EPS), EUR, diluted | 0.18 | -0.01 |
Equity per share, EUR | 0.35 | 0.17 |
Dividend per share, EUR | 0.00* | 0.00 |
Dividend to earnings ratio, % | 0.0% | 0.0% |
Effective dividend yield, % | 0.0% | 0.0% |
Repayment of equity per share, EUR | 0.00 | 0.00 |
Price per earnings (P/E) | -60 | -60 |
Number of shares adjusted for share issue (diluted), weighted average | 78,076,485 | 77,961,285 |
Number of shares adjusted for share issue (diluted), at end of financial year | 78,127,855 | 78,036,392 |
Number of shares adjusted for share issue (undiluted), weighted average | 78,076,485 | 77,863,691 |
Number of shares adjusted for share issue (undiluted), at end of financial year | 78,127,855 | 78,036,392 |
Share price development | ||
Share price development | ||
- highest price | 1.26 | 2.07 |
- lowest price | 0.60 | 0.56 |
- average price | 0.91 | 0.99 |
- closing share price at balance sheet date | 1.26 | 0.60 |
Market capitalisation, MEUR | 98.1 | 46.9 |
Number of shares traded | 12,770,526 | 11,002,725 |
Shares traded, % of total number of shares | 16.3 % | 14.1 % |
Number of shareholders | 5,585 | 4,791 |
* The Board of Directors proposes to the Annual General Meeting repayment of equity from the reserve for invested unrestricted equity, at most
For more information, please contact: Olli Pohjanvirta, President and CEO, tel. +358 40 900 6977, olli.pohjanvirta@nurminenlogistics.com
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