AS Tallink Grupp (TAL1T) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 8.3% to EUR 835.3m; EBITDA reached EUR 214.5m and net profit EUR 78.9m.

• FY passenger volumes rose 4.5% to 5.7m, while cargo units fell 20.9% to 324k.

• Q4 revenue declined 4.9% to EUR 193.7m; EBITDA fell to EUR 36.8m from EUR 50.4m and net profit to EUR 2.2m from EUR 16.7m.

Financial highlights

• FY gross profit increased to EUR 203.8m from EUR 113.5m; EBIT was EUR 113.3m versus EUR 37.7m, and EPS was EUR 0.106 versus EUR 0.019.

• FY2023 gross margin was 24.4%, EBITDA margin 25.7%, EBIT margin 13.6% and net profit margin 9.4%.

• Q4 gross profit was EUR 34.9m versus EUR 41.8m; EBITDA margin was 19.0% versus 24.8% and EPS EUR 0.003 versus EUR 0.022.

• FY net finance costs rose EUR 10.9m to EUR 35.6m, reflecting higher interest rates and financing obligations related to MyStar.

• FY fuel costs fell 32.6% to EUR 97.2m; capital expenditure was EUR 28.2m, mainly for vessel maintenance and repairs.

Outlook and guidance

• A EUR 0.06-per-share dividend for FY2023 was proposed for 2024.

• 2024 ESG work targets CSRD readiness, including double-materiality finalisation, target setting, and policy and data reviews in Q1–Q2; the first CSRD-compliant report is planned for 2025 with limited assurance.

• Summer is the peak earnings season; 2024 charter income and partial short-term LNG hedging are expected to help manage low-season risks.

• Victoria I is scheduled to operate Tallinn–Stockholm from 31 May to 31 August 2024, then return to Tallinn–Helsinki.