Touax: HALF-YEAR RESULTS 2024 Growth in Turnover and EBITDA

PRESS RELEASE        Paris, 18 September 2024 – 5:45 pm

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

HALF-YEAR RESULTS 2024

Growth in Turnover1 and EBITDA

  • Turnover of €80.4m, up slightly (+€1.4 m)
  • Increase of the EBITDA to €30m (+€1.1m)
    • Group share of net profit: €3.8m

« TOUAX confirms the resilience of its business model. Selective investments in quality logistics assets on long-term leases and the mix of different activities in which we operate enable a steady growth and recurring revenues. The dynamic syndication activity during the first semester demonstrates investors' confidence in TOUAX's business model and its ability to offer stable returns over the long term » remarked Fabrice and Raphaël Walewski, TOUAX SCA’s managing partners.

Consolidated EBITDA2 amounts to €30.0 million, a +€1.1 million increase, supported by the good performance of the management activity (+€2.7 million), with restated income from activities amounting to € 80.4 million, up +€1.4 million.

Financial expenses increase by -€1.1 million, related to the interest rates rising.

Non-recurring items had a positive impact on the first semester, with the payment of an additional price of €1.5 million for the sale of the Modular Buildings activity in 2017, and the favourable outcome of a former dispute in the United States for €0.4 million. As a reminder, during the first semester 2023, the net income included €2.6 million of non-recurring items corresponding to the combined effect of the buyout of minority interests in the Modular Buildings activity and the US dispute.

The Group share of net profit amounts to €3.8 million, versus €5.1 million in 2023.

In June 2024, TOUAX implemented for the Containers division a new Capex line of US$50 million for a period of two years, with an option to increase by a further US$15 million.

KEY ACCOUNTING ITEMS

Key figures June 2024

 
June 2023

 
Dec. 2023

 
     
(in € million)      
Restated Revenue (*) from activities 80.4 79.1 157.1      
Of which Freight Railcars 29.1 27.9 58.3      
Of which River barges 7.9 7.5 15.0      
Of which Containers 34.1 35.1 66.9      
Of which Miscellaneous and eliminations 9.3 8.6 16.9      
EBITDA 30.0 28.9 55.3      
Current operating income 14.2 14.7 25.9      
Other financial income and expenses 0.4 2.6 2.4      
Operating income 14.6 17.3 28.3      
Financial result -10.8 -9.8 -21.0      
Corporate tax -0.6 -1.4 -1.5      
Profit from discontinued operations 1.5 0.0 0.0      
Consolidated net profit (loss) (Group's share) 3.8 5.1 3.6      
Earnings per share (€) 0.55 0.72 0.52      
Total non-current assets 415.1 381.2 406.3      
Total assets 573.7 564.3 563.4      
Total shareholders' equity 153.0 153.5 147.6      
Net financial debt (a) 297.1 267.3 285.7      
Operating cash flow (b) 5.0 17.4 21.1      
Loan to Value ratio (c) 60.2% 57.4% 59.1%      
 

(a) including €248.1m non-recourse debt and €4.3m derivative financial instruments, at 30 June 2024
 
(b) including €23.5m net equipment acquisitions (vs €20.7m end of June 2023)  
(c) LTV: Consolidated gross financial debt / Total assets less goodwill and intangible fixed assets

(*) The key indicators in the Group’s activity report are presented differently from the IFRS income statement, to enable an understanding of the activities’ performance. As such, no distinction is made in third-party management, which is presented solely in agent form.
This presentation has no impact on EBITDA, operating income, or net income. The accounting presentation of revenue from activities is presented in the appendix to the press release.

A SLIGHT INCREASE IN REVENUE

Restated revenue from activities totals €80.4 million, up +€1.4 million (+1.7%) compared with H1 2023.

The owned activity, which came to €72.6 million at the end of June 2024, is slightly down by -€1.3 million.
The leasing revenues continue to grow over the semester (+€2.8 million; +8%) confirming their recurring contribution to Group revenues. The average utilisation rates of Freight Railcars (86.4%), River Barges (96.3%) and Containers (96.9%) were at a high level.
Ancillary services decline by -€2.3 million for the Freight Railcars division (-€1.2 million: lower volume on maintenance contracts) and the River Barges division (-€1.2 million: lower chartering activity), with a limited impact on the profitability. Sales of owned equipment also decline by -€1.8 million (-6.1%), with a drop in sales of owned containers (-€2.8 million) offset by sales within Freight Railcars and Modular Buildings activities.

The management activity amounts to €7.9 million with an increase of +€2.7 million (+52.5%). With a sustained pace of transactions, syndication fees increase significantly in the Containers, Freight Railcars and River Barges activities, by a total of +€4.6 million. This change is partly offset by the -€1.9 million fall in sales of second-hand containers owned by investors.

ANALYSIS OF CONTRIBUTION BY DIVISION  

The restated revenue from the Freight Railcars division reaches €29.1 million during the first semester, an increase of +€1.2 million (+4.4%).

Total of owned activity increases by +€0.7 million to €27.5 million over the semester. This increase is supported on the one hand by the rise in leasing activity (+€1.6 million), that offsets the decrease of ancillary services (-€1.2 million), and on the other hand by the rise of sales of owned equipment (+€0.3 million). However, the average utilisation rate fell by -2.1 points to 86.4% over the first semester 2024 compared with the same period in 2023, while the average daily leasing rate rose slightly. The European rail transport market declined in the first half of 2024, mainly the intermodal traffic, impacted by the Ukraine war, energy cost, inflation and the loss of competitiveness of European industries. This is partly offset by the strong growth of the Indian rail market, where Touax Rail has been active since 2011.

Thanks to the syndications operated during the semester, management activities increase by +€0.5million to €1.6 million in June 2024.

The restated revenue from the River Barges division is up +€0.4 million to €7.9 million. The lower chartering activity on the Rhine basin is offset by the management activity.

The restated revenue from the Containers division comes to €34.1 million at the end of June 2024, a decrease of -€1.0 million (-2.8%).

The owned activity is down by -€1.5 million, with revenue falling from €31.0 million in June 2023 to €29.5 million in June 2024. While the leasing activity rises by €1.3 million, benefiting from new investments and the increase of the average utilisation rates (from 95.1% in H1 2023 to 96.9% in H1 2024), sales of owned equipment fall by -€2.8 million in the first half (mainly due to the container trading business), from €21.2 million to €18.3 million.

The management activity is up +€0.5 million to €4.5 million in 2024 with a mix of syndication fees increasing and commissions on sales of investor equipment decreasing (lower availability for sale due to higher average utilisation rates, and unfavourable comparison with a significant transaction accounted in June 2023).

Revenue from the Modular Buildings division presented under "Miscellaneous” kept growing in 2024, rising by +€0.7 million to €9.3 million.

A STABLE OPERATING PROFITABILITY

EBITDA comes to €30 million, an increase of +€1.1 million (+3.9%).

EBITDA in the Freight Railcars division rises by +€2.1 million (+14%) to €17 million, supported by higher leasing revenue, sale of owned equipment and syndication fees.

The River Barges division accounts an EBITDA of €3.9 million over the semester, giving an increase of +€1.4 million (+58%) thanks to the management activity.

EBITDA in the Containers division falls by -€1.7 million to €7.1 million (-20%). Cost of sales falls due to lower trading volumes and lower prices for new containers, but operating expenses (including allowances for doubtful customers and provisions for inventories) rise as a result of an ongoing customer procedure.

EBITDA for the Modular Buildings division falls slightly by -€0.8 million, reflecting a mix of local and export business, with lower margins.

The Group’s depreciation and amortization increase by +€1.7 million (of which €1.4 million from the Freight Railcars division) to €15.9 million in June 2024, due to new investments.

Current operating income reaches €14.2 million, down by -€0.6 million compared with end-June 2023.

Financial income comes to -€10.8 million, compared with -€9.8 million during the first semester 2023. The increase in net interest expense is mainly explained by a price effect due to interest rates rising. As the net debt slightly increases, the volume effect is limited on the financial income.

Corporate income tax amounted to -€0.6million, down by €0.8 million compared with end-June 2023.

While a net exceptional income of €2.6 million was accounted in 2023 (accounting income of €3.5 million relating to the purchase in January 2023 of minority interests in the Modular Buildings business in Africa; $1.0 million judgement in a legal case in the United States related to an old dispute involving the former Modular Buildings subsidiary), TOUAX reported in June 2024 a non-recurring income of €0.4 million related to the favourable outcome of the same US dispute. Moreover, as the sale of the former Modular Buildings activity in 2017 was finalised with the payment of an earn-out of €1.5 million in June 2024, a profit from discontinued operations was accounted.

Net income Group share amounts to €3.8 million, a -€1.2 million decrease compared with end-June 2023.

A BALANCED FINANCIAL STRUCTURE

The strength of the TOUAX’s balance sheet is reflected in the Loan to Value ratio of 60.2% as of June 2024, compared with 59.1% in December 2023.

Shareholders' equity amounts to €153.0 million, compared with €147.6 million euros in December 2023. This increase comes from the allocation of the semester profit of €3.8 million and positive translation adjustments (+€2.8 million); partly offset by distributions to shareholders and general partners (-€1.5 million).

The level of cash on the balance sheet at 30 June 2024 remains stable, at €38.6 million.

FAVOURABLE OUTLOOK AT THE HEART OF SUSTAINABLE TRANSPORT INFRASTRUCTURE

TOUAX continues to adopt a cautious short-term policy in the current economic challenges: uneven growth by geographical area and major global geopolitical risks.

The volume of international trade should remain at a satisfactory level in 2024. Our average utilisation rates during the first half of the year (86.4% for Freight Railcars, 96.3% for River Barges and 96.9% for Containers) demonstrate the resilience of the economies and markets where TOUAX operates.

The asset management business on behalf of third-party investors should continue to grow, given investor’s interest in leasing investment strategies for tangible assets linked to transport infrastructure.

With its expertise in the intermodal, rail and river transport sectors, TOUAX is at the heart of sustainable transport infrastructure. The Group continues to increase its commitment to Corporate and Social Responsibility, for a low-carbon economy.

UPCOMING EVENTS

  • September 19, 2024:         Video conference call to present the semi-annual results in English
  • November 14, 2024:        Q3 2024 revenue from activities

TOUAX Group leases out tangible assets (freight railcars, river barges and containers) on a daily basis worldwide, both on its own account and for investors. With €1.2 billion of assets under management, TOUAX is one of the leading European players in the leasing of such equipment.

TOUAX is listed on the EURONEXT stock market in Paris - Euronext Paris Compartment C (ISIN code: FR0000033003) - and is listed on the CAC® Small, CAC® Mid & Small and EnterNext©PEA-PME 150 indices.

For further information please visit: www.touax.com

Contacts :

TOUAX        SEITOSEI ● ACTIFIN
Fabrice & Raphaël WALEWSKI        Ghislaine Gasparetto
touax@touax.com        ghislaine.gasparetto@seitosei-actifin.com
www.touax.com        Tel : +33 1 56 88 11 22 +33 1 46 96 18 00        

        

APPENDICES

1 – Analysis of revenue from activities

Restated Revenue from activities Q1 2024

 
Q2 2024

 
H1 2024

 
Q1 2023

 
Q2 2023

 
H1 2023

 
(in € thousand)
Leasing revenue on owned equipment 19,381 18,108 37,489 17,139 17,510 34,649
Ancillary services 3,021 3,939 6,960 5,030 4,271 9,301
Total leasing activity 22,402 22,047 44,449 22,169 21,781 43,950
Sales of owned equipment 12,213 15,898 28,111 13,053 16,895 29,948
Total sales of equipment 12,213 15,898 28,111 13,053 16,895 29,948
Total of owned activity 34,615 37,945 72,560 35,223 38,675 73,898
Syndication fees 424 4,707 5,131 0 544 544
Management fees 1,015 1,055 2,070 1,021 1,018 2,039
Sales fees 326 334 660 861 1,710 2,571
Total of management activity 1,765 6,096 7,861 1,882 3,272 5,154
Other capital gains on disposals 0 5 5 1 1 2
Total Others 0 5 5 1 1 2
Total Restated Revenue from activities 36,380 44,046 80,426 37,105 41,949 79,054

2 - Table showing the transition from summary accounting presentation to restated presentation

Revenue from activities H1 2024

 
Retreatment

 
Restated H1 2023

 
Retreatment

 
Restated
(in € thousand) H1 2024 H1 2024
Leasing revenue on owned equipment 37,489   37,489 34,649   34,649
Ancillary services 8,166 -1,206 6,960 11,637 -2,336 9,301
Total leasing activity 45,655 -1,206 44,449 46,286 -2,336 43,950
Sales of owned equipment 28,111   28,111 29,948   29,948
Total sales of equipment 28,111   28,111 29,948   29,948
Total of owned activity 73,766 -1,206 72,560 76,234 -2,336 73,898
Leasing revenue on managed equipment 16,904 -16,904 - 18,902 -18,902 -
Syndication fees 5,131   5,131 544   544
Management fees 823 1,247 2,070 754 1,285 2,039
Sales fees 660   660 2,571   2,571
Total of management activity 23,518 -15,657 7,861 22,771 -17,617 5,154
Other capital gains on disposals 5   5 2   2
Total Others 5   5 2   2
Total Revenue from activities 97,289 -16,863 80,426 99,007 -19,953 79,054

3 - Breakdown of restated revenue from activities by division

Restated Revenue from activities Q1 2024

 
Q2 2024

 
H1 2024

 
Q1 2023

 
Q2 2023

 
H1 2023

 
Variation

 
(in € thousand)
Leasing revenue on owned equipment 12,234 12,125 24,359 11,124 11,615 22,739 1,620
Ancillary services 1,137 1,555 2,692 1,938 1,937 3,875 -1,183
Total leasing activity 13,371 13,680 27,051 13,062 13,552 26,614 437
Sales of owned equipment 136 332 468 76 132 208 260
Total sales of equipment 136 332 468 76 132 208 260
Total of owned activity 13,507 14,012 27,519 13,138 13,684 26,822 697
Syndication fees 188 320 508 0 0 0 508
Management fees 558 562 1,120 538 553 1,091 29
Total of management activity 746 882 1,628 538 553 1,091 537
Total Freight railcars 14,253 14,894 29,147 13,676 14,237 27,913 1,234
Leasing revenue on owned equipment 1,749 1,908 3,657 1,878 1,886 3,764 -107
Ancillary services 1,196 1,311 2,507 2,072 1,629 3,701 -1,194
Total leasing activity 2,945 3,219 6,164 3,950 3,515 7,465 -1,301
Sales of owned equipment 1 0 1 0 5 5 -4
Total sales of equipment 1 0 1 0 5 5 -4
Total of owned activity 2,946 3,219 6,165 3,950 3,520 7,470 -1,305
Syndication fees 0 1,643 1,643 0 0 0 1,643
Management fees 32 31 63 11 14 25 38
Total of management activity 32 1,674 1,706 11 14 25 1,681
Total River Barges 2,978 4,893 7,871 3,961 3,534 7,495 376
Leasing revenue on owned equipment 5,393 4,072 9,465 4,133 4,004 8,137 1,328
Ancillary services 688 1,073 1,761 1,020 705 1,725 36
Total leasing activity 6,081 5,145 11,226 5,153 4,709 9,862 1,364
Sales of owned equipment 8,955 9,365 18,320 10,211 10,949 21,160 -2,840
Total sales of equipment 8,955 9,365 18,320 10,211 10,949 21,160 -2,840
Total of owned activity 15,036 14,510 29,546 15,364 15,658 31,022 -1,476
Syndication fees 236 2,744 2,980 0 544 544 2,436
Management fees 425 462 887 472 451 923 -36
Sales fees 326 334 660 861 1,710 2,571 -1,911
Total of management activity 987 3,540 4,527 1,333 2,705 4,038 489
Total Containers 16,023 18,050 34,073 16,697 18,363 35,060 -987
Leasing revenue on owned equipment 5 3 8 4 5 9 -1
Total leasing activity 5 3 8 4 5 9 -1
Sales of owned equipment 3,121 6,201 9,322 2,766 5,809 8,575 747
Total sales of equipment 3,121 6,201 9,322 2,766 5,809 8,575 747
Total of owned activity 3,126 6,204 9,330 2,770 5,814 8,584 746
Other capital gains on disposals 0 5 5 1 1 2 3
Total Others 0 5 5 1 1 2 3
Total Miscellaneous and eliminations 3,126 6,209 9,335 2,771 5,815 8,586 749
               
Total Restated Revenue from activities 36,380 44,046 80,426 37,105 41,949 79,054 1,372



1   Corresponds to the restated revenue from activities.
2 EBITDA corresponds to the recurring operating income excluding depreciation, amortisation and impairment.

Attachment

  • ENG TOUAX Press release - H1 2024

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