2013 annual results
Norbert Dentressangle in line with strategic targets
Operating margin at 3.5%
* 2013 revenues up 3.9% to €4,032 million, with strong growth in Logistics,
small decline in Transport and slight growth in Freight Forwarding
* EBITA of €142 million, almost identical to 2012 EBITA after adjustment to
comply with initial IAS 19Rand in line with forecasts
* Strong balance sheet with lower net debt and balance sheet ratios under
control.
* Successful launch of the Danone joint venture chilled logistics operation
in Russia, which is growing in line with forecasts.
* Successful integration of the Fiege Group logistics business in Italy and
the Iberian peninsula and the Daher freight forwarding business in France
and Russia
Norbert Dentressangle's CEO Hervé Montjotin commented on the 2013 results: "2013
confirms the merits of the business model and the strategy of Norbert
Dentressangle and has made considerable progress towards achieving its ambition
of becoming a leading supply chain management partner. We expanded our
operations into new high-growth regions such as Russia. In our business areas
where size is a key success factor, we became the fourth largest logistics
operator in Italy and ramped up our freight forwarding operations in France so
as to meet the challenges of this sector. We have consolidated and increased
our freight forwarding expertise, particularly in the field of
customs engineering, and confirmed our position as a leading logistics operator
in booming sectors such as e-commerce. These new market positions, coupled with
our robust balance sheet and the commitment of our staff, gives us every reason
to be confident in our future."
€m 2013 2012** Change
(Audited financial statements) Restated 2013/2012
Revenues 4,032 3,880 +3.9%
EBITDA* 251.5 244.8 +2.7%
EBITA (operating income 141.7 141.6 -
before goodwill impairment)
EBITA margin (%) 3.5% 3.7%
Net income Group share 70.1 69.7 +0.6%
* Operating income before depreciation, impairment and provision charges/write-backs
** Restated to comply with initial IAS 19R
Revenues: increased momentum in growth and globalisation
Norbert Dentressangle posted 2013 consolidated revenues of €4,032 million, up
3.9% from 2012 reported revenues. Like-for-like growth amounted to 2.4%. A
currency loss of 1.6% was recorded for the year.
The fourth quarter reinforced the favourable trend witnessed in the third
quarter, with revenue growth of almost 10% compared to Q4 2012.
Norbert Dentressangle's globalisation drive continued apace: 60% of Group
revenues are now generated outside France.
* The Transport division posted 2013 revenues of €2,014 million, slightly
down from 2012 (down 1.2% based on reported data and down 0.6% like for
like). The fourth quarter confirmed the return to growth seen in the third
quarter. Like-for-like growth was 1.4% . The product mix is developing
favourably, with steady growth in our "Red Inside" dedicated fleet
management (up 4.3%) and "Red Europe" European pallet network (up 2.3%)
offers, plus new major contracts under our "KeyPL" transport management
service in the UK and France.
* Growth in Logistics accelerated, with revenues of €1,950 million, up 9.4%
based on reported data and up nearly 7% like for like. Fourth quarter
like-for-like growth amounted to 11%. The expertise in buoyant sector
verticals, such as e-commerce, developed by the Logistics division will
enable it to gain new major contracts in key European markets.
* The Freight Forwarding business turned in revenues of €145 million, up 1.3%
from the previous year. This figure includes revenues from the Daher Group
freight forwarding operations in France and Russia, consolidated from 1
October 2013. The incorporation of the Daher operations has boosted
business, particularly in France. The Freight Forwarding business is
henceforth expected to turn in annual revenues of around €220 million.
Operating income stable compared to 2012
EBITA amounted to €141.7 million, almost identical to 2012 EBITA, giving an
operating margin of 3.5% compared to 3.7% in 2012. The decrease in the
Transport division's operating margin, mainly due to non-recurring
restructuring expenses due to lower business volumes, was offset by the good
performance of the Logistics division.
* The Transport division posted operating income of €53 million, down from
€60.4 million in 2012. The operating margin came to 2.7%, compared to 3.1%
in 2012. Whilst overall profits were down, the various transport business
segments fared differently. The pallet network segment held up well in all
countries, while the full load segment, which is more exposed to the
industrial sector, was hit by adverse market conditions, especially in
France. While in the first quarter, the Transport division launched a
restructuring programme, which resulted in non-recurring expenses, the
benefits of the restructuring began to be felt during the year, thereby
partly offsetting the decline in operating profit for the full year.
* The Logistics division posted operating income of €87.4 million, up from
€77.9 million in 2012. The operating margin increased from 4.4% in 2012 to
4.5% in 2013 including sales and lease back operation in the UK Apart from
Belgium, where the turnaround plan for the Nova Natie (Anvers) business is
still under way, the Logistics division is underpinned by a strong European
base with a profitability level allowing to drive the future growth of new
high-growth businesses outside Europe.
* The Freight Forwarding business is holding steady and delivered an
increased 2013 operating income of €1.3 million. Compared to 2012 the
consolidation of the Daher business boosted the average profit margin of
the freight forwarding business to 18.1%.
2013 net income came to €70.1 million, up 0.6% from €69.7 million in 2012
(restated to comply with initial IAS 19R).
A strong balance sheet with more room for manoeuvre
Group net debt at 31 December 2013 amounted to €456 million, down €33 million
from €489 million at 31 December 2012 despite the acquisitions made during the
year.
On 19 December 2013, Norbert Dentressangle announced the completion of a
private placement in the form of a €235 million Euro PP bond issue, including a
€75 million tranche with 6-year maturity and a 3.80% coupon and a €160 million
tranche with 7-year maturity and a 4.00% coupon. The bonds were placed
privately with a selection of institutional investors.
For Norbert Dentressangle, this transaction is a major new step towards
diversifying its sources of funding, while boosting the Group's financial
flexibility and extending the maturity of its debt under favourable conditions.
Given the favourable market conditions, Norbert Dentressangle also took the
opportunity to renew its corporate lines of credit in the form of a 5-year
revolving credit facility for €400 million.
Consolidated net assets (Group share) amounted to €543 million after accounting
for IAS 19R from 1 January 2013, whereby all pension fund deficits are
recognised on the balance sheet.
With improvements in the gearing (84%) and net debt/EBITDA (1.8) ratios
compared to 2012, the Group continues to strengthen its balance sheet at a time
when rigour and control are crucial, but acquisition opportunities must not be
allowed to slip through the net.
Dividend
Given the Group's 2013 earnings, the 21 May 2014 General Meeting will be asked
to approve a dividend payout of €1.60 per share. The dividend will be paid on
3rd June 2014.
Outlook
Norbert Dentressangle starts 2014 with its financial resources and underlying
strategies strengthened and with a powerful brand allowing new developments
beyond the boundaries of its traditional business areas. These strengths,
together with the commitment and professionalism of our staff and the
flexibility of our organisation prove their worth globally and put Norbert
Dentressangle in prime position to gain market shares in and beyond Europe.
Next release: 1st quarter 2014 revenue: 23 April 2014 (after market close)