STOCKHOLM, Nov. 14, 2019 /PRNewswire/ -- Continued satisfactory adjusted EBITA margin development and organic growth
Quarter 3: 1 July - 30 September 2019
Period: 1 January - 30 September 2019
CEO comments from Kenneth Marx:
During Q3 we have had a continued satisfactory development with an adjusted EBITA margin of 10.7% (9.3%) supported by commercial initiatives and cost efficiency programs. Our organic growth has also seen a positive development during Q3. Our focus on Express Ad Hoc has resulted in a favourable mix that is making good progress towards higher margins, which is also supported by an enhanced commercial focus on high-margin air freight products in our systemized segment. During Q3 we have introduced new campaigns that focus on long tail customers, where the focus areas have been our geographic coverage and flexibility.
The campaigns and a commercial focus on vertical solution selling have fuelled a satisfactory revenue growth of 6.4% (5.4%), and the underlying organic growth is 5.7%, which is a significant improvement from Q2. Total segment growth in Express Ad Hoc equals 9.2% and in Express Systemized 2.4%, which is due to commercial initiatives combined with strong growth in Belgium.
Our long-term growth target (5%) remains unchanged, as we have a strong sales pipeline including potential new orders as well as already signed but not yet activated agreements.
Efforts to improve contribution margins have been successful, as our margin increased to 34.2% (32.0%) in Q3, which is mainly due to a stronger margin and volume growth in the Express Ad Hoc segment.
Our commercial initiatives will continue according to plan, and we maintain our focus on sales efficiency, solution selling and new partnerships, as well as on exploring new systemized solutions and network enhancement. Jetpak is continuously challenging supplier models to provide further cost efficiency, and our Q95 quality project is ensuring a strong quality improvement.
New potential acquisition targets are being explored in Europe and the Nordic countries, and we have intensified our efforts to acquire a company in the local courier and distribution segment, which will ensure a stronger market position and potential pan-Nordic growth. Currently a letter of intent has been signed with one selected target.
Despite some uncertainty and concerns related to macroeconomic indicators in some of our main markets, we have achieved satisfactory growth in terms of revenue and EBITA. Norway has continued its strong growth and Sweden has stabilized at an acceptable level.
Our main Scandinavian competitors among postal operators continue to focus on cost efficiency and scale benefits in volume driven parcel flows, which benefits Jetpak and our continued growth potential.
Despite increased price competition Jetpak is managing to maintain its market share by providing greater flexibility and high quality, which is reducing the risk of margin deterioration and decreasing revenues.
We are cautiously monitoring market developments and are well prepared to meet future market changes thanks to our agile organization and asset light business model. Our commercial initiatives and cost efficiency programs ensure a continued strong position.
Our initiatives, progress and results of 2019 emphasise our journey towards our long-term target and dividend policy.
Solna, 14 November 2019
The company's certified advisor is FNCA Sweden AB, e-mail: firstname.lastname@example.org, telephone +46 8 528 003 99.
The information was submitted for publication, through the contact persons mentioned below, on 14 November 2019 at 08.30 CET. This constitutes information that Jetpak Top Holding AB (publ) is required to publish under the EU Market Abuse Regulation.
Kenneth Marx / CEO, phone +46 733685400
Peter Hallman / CFO, phone +46 733685210
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