Transport Trade Services (TTS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RON 160.5 million, down 33% year-over-year, with a net loss of RON 14.9 million compared to a profit of RON 32.1 million in Q1 2024.

• Revenues increased compared to Q4 2024, driven by higher operated and transported volumes, but profitability continued to decline due to low market tariffs and rising costs.

• Market share in river transport, especially on the Danube-Black Sea Canal, rose significantly, with a 30% increase in share and 20% growth in volumes versus Q4 2024.

• The group’s main activities include river transport, forwarding, and port operations, with significant operations on the Danube and in Romanian ports.

• The company focused on cost reduction, particularly in river transport, achieving notable decreases in salary, subcontractor, consumables, and energy expenses.

Financial highlights

• Revenue decreased 33% year-over-year to RON 160.5 million, with a net loss of RON 14.9 million and an operating loss of RON 10.5 million.

• Revenues increased quarter-over-quarter, but profit margins declined; EBITDA margin stood at 9.5% and profit margin at 6.2%.

• Cash and cash equivalents declined to RON 95.1 million from RON 129.2 million at year-end 2024.

• Total assets increased slightly to RON 1.30 billion from RON 1.28 billion at December 2024.

• Operational expenses were significantly reduced, supporting a solid balance sheet and maintaining a low level of indebtedness.

Outlook and guidance

• Cost reduction measures initiated in 2024 will continue, with rational adjustments to avoid harming operational capacity.

• Q3 is expected to show both revenue and cost increases if Ukrainian and agricultural volumes materialize as forecasted.

• Budgeted revenues for the year are considered achievable, but final outcomes depend on harvest results and Liberty Galați's production.

• In April 2025, shareholders approved a dividend distribution of RON 27.9 million (RON 0.155 per share).