NTG Nordic Transport Group (NTG) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue grew 8.7% year-over-year, with growth in both divisions, but gross margins declined due to intense competition, increased costs, and pass-through effects.

• Profitability was pressured, but activity levels showed signs of stabilization and investments continued in Road & Logistics.

• Three acquisitions were signed: Schmalz+Schön (Germany), DB Schenker's Italian furniture activities, and Freightzen Logistics (Thailand/APAC), strengthening the company’s footprint and service offerings.

• The company is focused on price increases in H2 2024 to counter margin pressure, with differentiated strategies by market.

• Guidance for 2024 is maintained: Adjusted EBIT of DKK 500–580 million.

Financial highlights

• Q2 2024 net revenue was DKK 2,305 million, up 8.7% year-over-year; organic growth was 6.2%.

• Gross profit decreased 1.5% to DKK 475 million, with gross margin at 20.6% (down from 22.7% in Q2 2023).

• Adjusted EBIT rose 11.5% to DKK 165 million, aided by a DKK 35 million earnout settlement.

• Profit for the period increased to DKK 116 million from DKK 88 million in Q2 2023.

• Adjusted free cash flow was DKK 56 million, up from DKK 28 million in Q2 2023.

Outlook and guidance

• Full-year 2024 adjusted EBIT guidance remains DKK 500–580 million, unchanged from prior outlook.

• Guidance excludes effects from the three recent acquisitions, which have not yet closed.

• Assumptions include continued challenging conditions, higher freight rates, and muted gross profit yields for both divisions.

• Outlook assumes a flat market environment with soft macroeconomics and muted consumer confidence.

• Assumptions may change due to ongoing financial and geopolitical uncertainty.