Globaltrans Investment (GLTR) H2 2023 earnings summary

Executive summary

• FY2023 Adjusted Revenue rose 7% YoY to RUB 87.4 bln and Adjusted EBITDA rose 6% to RUB 52.3 bln; Adjusted EBITDA Margin held at 60%.

• Strong cash generation lifted Free Cash Flow 74% YoY to RUB 25.8 bln; year-end net cash was RUB 27.4 bln.

• Operational efficiency improved, including a more than 10-year-low 36% Empty Run Ratio for gondola cars; re-domiciliation to Abu Dhabi Global Market became effective 26 February 2024.

Financial highlights

• IFRS revenue was RUB 104.7 bln in 2023 versus RUB 94.5 bln in 2022; gross profit was RUB 46.8 bln versus RUB 40.5 bln.

• Operating profit reached RUB 44.1 bln versus RUB 34.3 bln; profit for the year was RUB 38.6 bln versus RUB 24.9 bln.

• Basic and diluted EPS was RUB 216.58 versus RUB 141.23.

• Adjusted Revenue was RUB 87.4 bln; Net Revenue from Operation of Rolling Stock rose 6% to RUB 81.1 bln, representing 93% of Adjusted Revenue.

• Total Operating Cash Costs rose 8% to RUB 35.0 bln, with cost-cutting measures and operational efficiency tempering accelerated cost inflation.

Outlook and guidance

• Fleet purchases and operating leases will be pursued opportunistically, subject to industry conditions and fleet needs; owned-fleet retirement is expected to be insignificant in 2024.

• Owned-fleet retirements are expected to average ~3,500 units annually in 2025–2029.

• Operational efficiency and strict cost control remain priorities amid ongoing cost pressure; dividend payments remain in focus but suspended while technical issues are addressed.