Transport Trade Services (TTS) H1 2024 earnings summary

Executive summary

• H1 2024 results were impacted by a sharp reduction in Ukrainian grain flows due to the reopening of Odessa ports, returning business to pre-war trends.

• Drought in June significantly affected Romanian and regional grain crops, especially sunflower, further impacting volumes.

• Revenue for H1 2024 was RON 298.7 million, down 32% year-over-year, with net profit at RON 47.7 million, a 36% decrease from H1 2023.

• Core business remains fluvial transportation, representing 99% of total revenue.

• The company operates three divisions: Minerals, Agri, and Chemical, focusing on logistics for various industries.

Financial highlights

• Net result difference of RON 47 million vs. RON 37 million at consolidated level explained by RON 9.7 million in dividends.

• EBITDA remains a key focus, with satisfactory performance, especially from chemical products, which showed growth in H1 2024.

• Operating profit for H1 2024 was RON 44.5 million, down from RON 78.5 million in H1 2023.

• Earnings per share for H1 2024 were RON 0.80, compared to RON 1.23 in H1 2023.

• Cash and cash equivalents at June 30, 2024, were RON 62.1 million, down from RON 88.0 million at year-end 2023.

Outlook and guidance

• Long-term growth expected to normalize to pre-2022 levels as the temporary Ukraine-driven spike fades.

• No guidance revision planned until Q3 results are available; ongoing monitoring of market and operational conditions.

• On July 2, 2024, shareholders approved a share capital increase of RON 120 million via incorporation of retained earnings, with a 2:1 bonus share issue scheduled for August 27, 2024.

• Future results will increasingly reflect the impact of recent investments.