Transport Trade Services (TTS) Q3 2024 earnings summary

Executive summary

• Nine-month revenues reached RON 581.9 million, down from RON 872.9 million year-over-year, but matching full-year 2021 levels, indicating a recovery phase after exceptional results in 2022-2023 due to Ukraine-related disruptions.

• Net profit attributable to shareholders was RON 26.0 million, a significant decrease from RON 232.4 million in the same period last year, though profitability nearly doubled compared to pre-Ukraine periods.

• Extraordinary General Meeting approved a share capital increase of RON 120 million from retained earnings, issuing 120 million new shares distributed freely to shareholders.

• The company is better equipped and positioned for future growth, with a focus on adapting to evolving market conditions.

Financial highlights

• Estimated year-end revenues: RON 479-485 million (TTS), RON 739-745 million (group); nine-month EBITDA: RON 70 million (TTS), RON 137 million (group), with EBITDA margin at 20.2%.

• Operating profit dropped to RON 40.4 million from RON 297.2 million year-over-year.

• Net assets at group level rose to RON 1,044 million from RON 663 million in 2021, with a 16% annualized growth rate.

• Cash and cash equivalents at period end were RON 149.8 million, down from RON 229.3 million at September 2023.

• Indebtedness remains low: 5% at group level, 11% at company level, with strong cash positions; interest-bearing loans and borrowings totaled RON 102.1 million at September 30, 2024.

Outlook and guidance

• Year-end EBITDA expected at RON 70-73 million (TTS) and RON 137-144 million (group).

• The company continues to operate on a going concern basis, with no indication of significant reduction in business or liquidation.

• Next year’s growth will be based on a more realistic comparison to 2024 and 2023, with continued operational adjustments.

• Market conditions for grains remain uncertain due to low prices and high inventories; mineral segment expected to remain strong.