EAC INVEST A/S Revenue grew by 9.1% in EUR to EUR 114.4m (EUR 104.9m). 3.9% growth in local currencies.
EBITDA before special items was EUR 11.9m (EUR 9.2m), including a EUR 2.0m gain on the divestment of a warehouse in Singapore.
EBITDA margin before special items and adjusted for the one-off gain was 8.7% (8.8%).
Continuing operations generated a net profit of EUR 7.0m (EUR -1.4m). Q3 2014 was impacted by significant non-recurring foreign exchange losses and restructuring provisions.
Significant improvement in working capital employed, net debt position and operating cash flow.
Depressed market conditions in Australia continued.
Relocation Services grew by 16.3% in local currencies, constituting 13% (11%) of total revenue in Q3. The growth in EUR was 24.3%.
Consolidated highlights from the first 9 months:Revenue growth of 14.4% to EUR 283.4m (EUR 247.8m). 6.4% growth in local currencies.
EBITDA at EUR 10.8m (EUR 11.1m) including EUR 2.0m gain on divestment of a warehouse in Singapore.
Continuing operations generated a profit of EUR 1.0m against a loss of EUR 3.1m last year.
Revenue is expected to be in the range of EUR 370m - EUR 380m (EUR 370m - EUR 390m in the previous outlook). EBITDA before special items is expected to be in the range of EUR 11m - EUR 13m (EUR 10m - EUR 12m in the previous outlook).
'We can reflect on an acceptable quarter with improved overall results. The Q3 high season in the Northern hemisphere was satisfactory although margins still being under pressure. In line with our strategy we continued to generate good growth in Relocation Services and completed a successful sale of our warehouse in Singapore. Australia remains depressed, and restructuring initiatives will continue.
We have improved working capital and cash flow from operations significantly and strengthened our overall cash position. We launched a new 2020 strategy in September with ambitious long term targets. A number of tactical and strategic initiatives to further drive efficiencies in our operations and continuously improve results are now being launched in support of the new strategy.'
Comparative figures for 2014 are stated in brackets. All currency effects refer to translation effects from reporting currencies unless otherwise stated.
For additional information, please contact:
Martin Thaysen, Group CEO, +44 20 3691 8300 or Christian Møller Laursen, Group CFO, +44 20 8963 2514
The 2015 outlook reflects management's expectations of future events and must be viewed in the context of the business environments and currency markets, which may cause actual results to deviate materially from those projected by Santa Fe Group. The outlook is stated at current exchange rates and based on estimated consensus growth rates in key economies as well as present expectations from key corporate customers. Santa Fe's business is seasonal and dependent on the third quarter peak season at the Northern Hemisphere as well as the local fourth quarter peak season in Australia. Hence, the majority of revenue and earnings may be recognized in these periods.
East Asiatic House 20 Indiakaj
DK-2100 Copenhagen Ø
CVR-no. 26 04 17 16
Telephone +45 3525 4300 E-mail: sfg@santaferelo.com
Further information on the Santa Fe Group is available on
the Group's website: www.santaferelo.com
EURm Q3 2015 Q3 2014 Q1-Q3 2015 Q1-Q3 2014 FY 2014
CONSOLIDATED INCOME STATEMENT | 114.4 | 104.9 | 283.4 | 247.8 | 338.1 |
Revenue | |||||
Earnings before depreciation, amortisation and special items | 11.9 | 9.2 | 10.8 | 11.1 | 12.3 |
Special items, net | -0.6 | -2.1 | -1.3 | -2.5 | -2.5 |
Earnings before depreciation and amortisation (EBITDA) | 11.3 | 7.1 | 9.5 | 8.6 | 9.8 |
Operating profit (EBIT) | 9.3 | 5.5 | 3.7 | 4.2 | -34.9 |
Financials, net | 0.8 | -4.9 | -2.2 | -5.6 | -2.5 |
Share of profit in associates | 0.1 | 0.0 | 0.5 | 0.1 | 0.1 |
Income tax | 3.2 | 2.0 | 1.0 | 1.8 | -3.6 |
Profit from continuing operations | 7.0 | -1.4 | 1.0 | -3.1 | -33.7 |
Profit from discontinued operations | -0.1 | -0.1 | -0.1 | 80.9 | 80.5 |
Net profit/loss for the period | 6.9 | -1.5 | 0.9 | 77.8 | 46.8 |
Earnings per share (diluted) EUR, continuing operations | 0.6 | -0.2 | 0.0 | -0.3 | -2.9 |
EURm 30.09.2015 30.09.2014 31.12.2014
CONSOLIDATED BALANCE SHEET | 259.5 | 291.6 | 239.7 |
Total assets | |||
Working capital employed | 11.1 | 17.8 | 18.0 |
Net interest bearing debt, end of period | 13.3 | 19.7 | 20.2 |
Net interest bearing debt, average | 16.8 | 25.6 | 25.9 |
Invested capital | 105.5 | 156.4 | 115.1 |
Santa Fe Group's share of equity | 97.8 | 132.0 | 97.0 |
Non-controlling interests | 1.7 | 2.0 | 2.4 |
Cash and cash equivalents | 32.7 | 18.0 | 18.7 |
Investments in intangible assets and property, plant and equipment | 2.6 | 3.9 | 5.2 |
CASH FLOW | 8.3 | -6.7 | -5.4 |
Operating activities | |||
Investing activities | 0.2 | -27.9 | -29.1 |
Financing activities | 5.2 | -49.7 | -49.2 |
RATIOS | 3.8 | 4.5 | 3.6 |
EBITDA margin (%), before special items | |||
Operating margin (%) | 1.3 | 1.7 | -10.3 |
Equity ratio (%) | 37.7 | 45.3 | 40.5 |
Return on average invested capital (%), annualised | 11.5 | 7.7 | 7.6 |
Return on parent equity (%) | 0.4 | 70.4 | 35.1 |
Equity per share (diluted) | 8.2 | 11.0 | 8.1 |
Market price per share, DKK | 58.0 | 61.5 | 52.0 |
Number of treasury shares | 338,494 | 338,494 | 338,494 |
Number of employees end of period | 2,964 | 2,989 | 2,969 |
The ratios have been calculated in accordance with definitions on page 74 in the Annual Report 2014. For the detailed income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement, refer to pages 8 - 12.
The Santa Fe Group achieved a revenue of EUR 114.4m in Q3 2015 (EUR 104.9m) equivalent to a revenue growth of 9.1% in EUR and 3.9% in local currencies. Revenue increased in all three product lines, but Relocation Services performed particularly strong with a 16.3% growth in local currencies from Q3 2014. Overall performance was influenced by double digit growth in EUR in EMEA and Asia but nega- tively impacted by continued downturn in Australia.
Consolidated EBITDA before special items was EUR 11.9m (EUR 9.2m), positively impacted by a gain of EUR 2.0m related to divest- ment of a warehouse in Singapore completed on the last day of the quarter. The gain is presented as part of other operating income. The margin pressure in the core Moving Services, particularly in Australia combined with lower volume, affected earnings negatively. Asia deliv- ered a strong result and corporate costs in Copenhagen were reduced.
Santa Fe continues the strategic focus on expanding from the core Moving Services into other Relocation Services, which typically gener- ates higher margins. Revenue from Relocation Services reached 13%
Commercial DevelopmentThe commercial activity level remains high. During Q3 Santa Fe has responded to and is currently negotiating a higher number of Requests for Proposals (RFP's) than during the same quarter last year. Activity levels are driven by potential customers exploring opportunities to improve overall mobility set-up, but also by increased oursourcing of relocation and assignmemt management services.
Preparations are on track for implementation of the new EUR 11m (p.a.) contract for global relocation services with one of the world's leading agro-chemical businesses secured during Q1. The contract win was particularly important as being the first major global win for the group with a U.S. headquartered customer.
No major contracts were won or lost during Q3.
BY BUSINESS LINE AND BY REGION
Revenue by business line
Moving
of total revenue during Q3, versus 11% during same quarter last year.
Through the new 2020 Strategy as presented in company announce- ment no. 9/2015, Santa Fe Group aims to tackle the current issues in the Group's largest business area, Moving Services, and ensure continual double-digit growth in the sale of higher margin Relocation Services in the period leading up to 2020. The aim is to more than
double Santa Fe's operating margin and more than triple the return on
Services
Relocation Services
Records Management
Q3 2015
Q3 2014
invested capital.
The first step of the 2020 Strategy is to strengthen the competitive edge and earnings in Moving Services without compromising on quality or service levels. Under the 'Fix the Core' programme, several measures have been launched in 2015: Certain major low-margin
contracts have been renegotiated, the management structure has been simplified and the Australian network has been trimmed. Furthermore a Head of Procurement was appointed during Q3 and the first global tender for a major procurement area was launched. Other global pro- curement contracts have been put out to tender.
Overall Q3 revenue from Moving Services increased by 2.1% in local currencies and by 6.4% in EUR to a total of EUR 95.9m (EUR 90.1m).
Revenue in Q3 increased by 16.3% in local currencies and 24.3% in EUR to EUR 14.3m (EUR 11.5m).
Revenue in Q3 increased by 7.5% in local currencies to EUR 4.2m (EUR 3.3m) and 27.3% in EUR. Measured in volume the business grew by 5.6% year-to-date 2015.
To further expand Santa Fe's global reach within Visa and Immigration Services, a Group Director was appointed during Q2 in a new estab- lished position. This follows the acquisition of a Visa and Immigration services provider in Australia during 2014.
Revenue by region
EMEA
Asia
Australia
Q3
Q3
For further details related to the 2020 strategy please refer to an-
nouncement no. 9/2015.
29%2015
2014
REVENUE BY BUSINESS LINES AND REGIONS
Change in Change
Santa Fe | Santa Fe | |||||
EMEA | Asia Australia | Group | EMEA | Asia Australia | Group | Santa Fe Group |
Q3 2015 Q3 2014 %, EUR in %, LC
EURm
Moving Services | 57.5 | 23.9 | 14.5 | 95.9 | 51.8 | 20.1 | 18.2 | 90.1 | 6.4 | 2.1 |
Relocation Services | 9.1 | 4.6 | 0.6 | 14.3 | 6.9 | 3.9 | 0.7 | 11.5 | 24.3 | 16.3 |
Records Management | 0.2 | 4.0 | 4.2 | 0.2 | 3.1 | 3.3 | 27.3 | 7.5 | ||
Total revenue | 66.8 | 32.5 | 15.1 | 114.4 | 58.9 | 27.1 | 18.9 | 104.9 | 9.1 | 3.9 |
Growth per region: | ||||||||||
Change in %, EUR | 13.4 | 19.9 | -20.1 | 9.1 | ||||||
Change in %, LC | 8.9 | 5.6 | -15.2 | 3.9 |
Overall Q3 revenue in EMEA of EUR 66.8m (EUR 58.9m) was 8.9% above 2014 in local currencies.
Revenue from Moving Services in EMEA increased 6.8% in local currencies during Q3 to EUR 57.5m (EUR 51.8m). Strong growth was realised in the UK and France, whereas Switzerland had a challenging quarter. Generally the region benefitted from contracts won during the latter half of 2014 and increased activity levels from existing account.
Relocation Services within EMEA continued to deliver strong growth during the quarter, exceeding Q3 2014 by 25.4% in local currencies to EUR 9.1m (EUR 6.9m). The growth was widespread within Western Europe.
EBITDA in EMEA improved during Q3 and it was encouraging that gross margins improved compared to Q3 2014 in key European coun- tries such as Germany and France. Recruitments made to operate and service the many new contracts combined with strengthening of corpo- rate functions resulted in higher staff costs compared to Q3 2014. Staff costs were also affected by a EUR 0.6m provision against two on-going labour disputes with former employees.
Revenue in Asia in Q3 reached EUR 32.5m (EUR 27.1m), significantly impacted by the appreciation of the USD and USD-related currencies against the EUR. In local currencies the growth in revenue was 5.6%.
EBITDA BEFORE SPECIAL ITEMS BY REGION | ||||||
Q3 | Q3 | H1 | H1 | Q1-Q3 | Q1-Q3 | |
EURm | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
Revenue from Moving Services in Asia increased 4.9% in local curren- cies to EUR 23.9m (EUR 20.1m). Most markets in Asia demonstrated strong growth, which was partly offset by significant revenue decline in
China. The market for international relocations in China continues to be down by approximately 20% compared to last year.
Revenue from Relocation Services in Asia was EUR 4.6m (EUR 3.9m) or an increase of 6.0% in local currencies driven by growth in most markets in the region but mainly Hong Kong, Singapore, Indonesia and Vietnam. China experienced another steep decline due to the slower moving activity adversely impacting relocation services.
Revenue from the Records Management business in Asia increased by 9.6% in local currencies to EUR 4.0m (EUR 3.1m) mainly driven by successful price increases in Hong Kong and volume growth combined with new accounts in Greater China and The Philippines.
EBITDA in Asia was significantly above Q3 2014, positively impacted by a EUR 2.0m gain on divestment of a warehouse in Singapore due to a move to more modern facilities on an operational lease contract. Growth was seen in most countries but most notably in Singapore, Hong Kong and Indonesia. This was however countered by the slowdown in Mainland China. EBITDA was supported by tight cost
control with lower staff costs driving the positive variance along with the revenue uplift.
In Australia, the Q3 revenue was EUR 15.1m (EUR 18.9m) equivalent to a decrease of 15.2% in local currencies.
The Australian Moving Services revenue decreased by 15.2% in Q3 in local currencies to EUR 14.5m (EUR 18.2m). The main reasons are continued market decline and consequent price pressure, as well as lower inbound volumes from US partners.
EMEA | 6.1 | 5.9 | -2.6 | -0.6 | 3.5 | 5.4 |
Australia | -1.6 | -0.4 | -1.4 | 1.2 | -3.0 | 0.7 |
Asia | 1) 7.9 | 4.7 | 4.5 | 3.1 | 12.4 | 7.8 |
Corporate and unallocated | -0.5 | -1.0 | -1.6 | -1.8 | -2.1 | -2.8 |
Santa Fe Group | 11.9 | 9.2 | -1.1 | 1.9 | 10.8 | 11.1 |
1) Including gain on sale of warehouse of EUR 2.0m
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