Nobina interim report 1 June–31 August 2019
CONTINUED STABLE DEVELOPMENT
The second quarter
· Net sales amounted to SEK 2,528 million (2,224), an increase of 13.7 per cent whereof 10.0 per cent relates to acquisitions, –0.6 per cent was organic growth and 4.3 per cent come from currency effects.
· EBITA amounted to SEK 162 million (136).
· Operating profit amounted to SEK 156 million (127).
· Profit before tax amounted to SEK 101 million (83).
· Profit after tax amounted to SEK 81 million (62), and earnings per share totalled SEK 0.92 (0.70) before dilution.
· Cash flow from operations excluding changes in working capital was SEK 421 million (347).
The first half of the year
- Net sales amounted to SEK 5,277 million (4,575), an increase of 15.3 per cent whereof 10.6 per cent relates to acquisitions, 0.4 per cent was organic growth and 4.3 per cent come from currency effects.
- EBITA amounted to SEK 330 million (251).
- Operating profit amounted to SEK 308 million (241).
- Profit before tax amounted to SEK 198 million (153).
- Profit after tax amounted to SEK 157 million (114), and earnings per share totalled SEK 1.78 (1.30) before dilution.
- Cash flow from operations excluding changes in working capital was SEK 855 million (724).
Significant events during the second quarter
- During the second quarter, Nobina underwent a comprehensive contract migration comprising several major contract start-ups encompassing 395 buses and contract terminations consisting of 378 buses resulting in a rejuvenation of the contract portfolio.
- The European Commission has, after Nobina’s filed complaint, declared that subsidies to publicly owned operators are not permitted and decided that a Finnish former municipal bus company must repay EUR 54.2 million to Helsinki community for incompatible public aid during the period 2002–2012
- Nobina Sweden received Unionen’s LGBT award for 2019, as Sweden’s most LGBT-friendly workplace. Unionen’s LGBT award is given every year to an employer that in an exemplary manner strives for an inclusive workplace, regardless of sexual orientation, gender identity and gender expression.
Significant events after the end of the quarter
- No significant events occurred after the end of the quarter.
The financial information presented in the report pertains to continuing operations, unless otherwise stated. The divestment of Swebus Express AB was reported pursuant to IFRS 5 and is therefore adjusted in the current and the comparative periods and recognised at an aggregate amount under the line item “profit/loss from discontinued operations” in the consolidated income statement.
In line with our expectations, Nobina continued to develop well in the second quarter of the fiscal year. Growth was 13.7 per cent and adjusted profit before tax increased to SEK 107 million (92), driven by underlying efficiency improvements and higher business activity in all markets. The three acquisitions carried out in the past year, Samtrans in Sweden and De Blaa Omnibusser and Örslev Holding in Denmark, are now fully integrated and provide a continuous contribution to the Group’s sales and earnings. Through Samtrans and Örslev Holding, we have established a strong position in the segment for special needs transportation, where we see continued favourable long-term growth opportunities and a potential for further efficiency gains within the Group.
EXTENSIVE CONTRACT MIGRATION
We have now entered a period with several major traffic start-ups and terminations, referred to as contract migration, which often results in a temporary drop in profitability. During the second quarter, we noted small negative effects in the Swedish operations, but during the next two quarters the migration will have a more tangible negative effect, also keeping in mind the challenging comparative figures. But as I have said many times before, profitability in new contracts is always at its lowest early in the contract period, and gradually improves as time passes. With the stringent demands we impose on which contracts we want to win, combined with the growth in volume, the current migration will make a positive contribution to reaching our financial targets.
A GROWING BUSINESS
At the same time, we are looking forward to securing new contracts in connection with the substantial tender volumes we are facing in the coming quarters, particularly in Sweden and Denmark. As few of our own contracts are expiring, we see significant potential to add market shares and accelerate Nobina’s growth. Our position as market leader in the Nordic region for public transport entails greater responsibility for the transport solutions, and thereby more business opportunities. One such area is digital so-called MaaS solutions (Mobility as a Service) for smoother door-to-door travel, where we have several exciting projects underway. Nobina is helping to drive this development in the Nordic countries which makes me a little extra proud.
ESG-ACTIVITIES IN FOCUS
I am also proud that Nobina has been named by the Unionen trade union as Sweden’s most LGBT-friendly workplace, proof that we live by our values of having respect for each other, caring and being good leaders and have also for the seventh consecutive year been both sponsor and partner to Stockholm Pride. We have also continued, through our own efforts and in collaboration with job centres, to help longterm unemployed, being trained as bus drivers. Social commitment is one important aspect of our ESG work, which also includes technology and solutions to improve air quality and increase mobility. In the second quarter, we began operating 92 electric buses, and of 373 buses that are currently on order 38 are electric buses and all of the others are adapted to operate on fossil-free fuel. Our efforts to deliver efficient sustainable solutions for society is being recognised by more and more investors, who understand the value of this in order to create profitable growth. Good support for this view can be found from the independent climate research institute Cicero, which in conjunction with the issue of our green bond earlier this year, gave us the highest “dark green” ranking for our green framework and sustainability agenda. This is the first time this has been given to a public transport company.
Finally, I would like to highlight the significance of fair competition for fair pricing in the market. The European Commission has, after our filed complaint, ordered a former municipal bus company in Finland to repay EUR 54.2 million in incompatible public support during an extended period. This decision strengthens us in our efforts moving forward to develop the public transport of the future in both Finland and the rest of the Nordic region.
President and CEO
The information comprises such as Nobina AB (publ) is obliged to publicly disclose pursuant to the EU Market Abuse Regulation and the Securities Market Act. Through the below contact person, the information was submitted for publication at 8.00 am CET on 27 September 2019.