AS Tallink Grupp unaudited consolidated Interim Report for the
fourth quarter and 12 months of 2023
The results of AS Tallink Grupp for the fourth quarter and
12 months 2023 will be introduced at an Investor Webinar held today
at 12:00 (EEST). To participate, please join via the
following link; we kindly ask
participants to provide their questions latest by 11:00 am by email
to: investor@tallink.ee. Further details are
available in a previously
published announcement.
In the financial year 2023 (1 January – 31
December), AS Tallink Grupp and its subsidiaries (hereinafter
referred to as “the Group”) carried 5 705 600 passengers,
which is 4.5% more than in the financial year 2022. The number of
cargo units transported decreased by 20.9% compared to the previous
financial year. The Group’s unaudited consolidated revenue amounted
to EUR 835.3 million (EUR 771.4 million in the financial year
2022), up by 8.3% year-on-year. Unaudited EBITDA was EUR 214.5
million (EUR 135.8 million in 2022 financial year) and the
unaudited net profit for the period was EUR 78.9 million (EUR 13.9
million in 2022 financial year), up by 58.0% and 466.0%,
respectively.
The following operational factors impacted the
Group’s revenue and operating results in the financial year
2023:
- The volume of cargo and passenger transportation was impacted
by less vessels in operations due to chartering and by less trips
made compared to the same period a year ago.
- The demand was also impacted by low consumer and business
confidence levels, and weak economic environment in all Group’s
core markets but also by global geopolitical instability.
- As at the end of the financial year, the Group operated 15
vessels including 2 shuttle vessels, 2 cargo vessels and 5 cruise
ferries as well as 5 vessels that were chartered out (3 vessels on
long-term and 2 vessels on short-term charter) and one in
lay-up.
- During the financial year, 2 charter agreements ended. The
charter agreement of the cruise vessel Romantika was terminated in
September 2023 prior to the agreement’s expiration date. The
short-term charter agreement of the cruise ferry Victoria I ended
in July 2023. In addition, the Group extended the charter
agreements of cruise vessels Galaxy I and Silja Europa until April
2024 and end of 2024, respectively. The shuttle vessel Oscar Wilde
(former Star) was chartered out in May 2023 for 20 months with the
option to extend the charter period by 2+2 years and included a
purchase option.
- The planned maintenance works of vessels totalled to 61
days.
- The Group operated 3 hotels in Tallinn and 1 in Riga.
- Declining global fuel prices, the optimal fleet size and strict
cost control had a positive impact on the Group’s cost base.
However, while the fuel prices have dropped the fuel transportation
cost component has increased.
- The Group repaid loans in the amount of EUR 487.6 million,
which includes refinancing of loans in the amount of EUR 298
million. The net repayment of interest-baring loans was EUR 189.6
million.
- The Group’s net debt to EBITDA ratio amounted to 2.8 as at the
end of the financial year 2023 compared to 5.4 as at the end of the
financial year 2022.
- The Group continues to focus on cost efficiency from previously
implemented measures and retaining profitable operations on its
core routes.
- The Group regularly monitors the developments on its core
routes including the capacity of each route and continues to look
for new chartering options for vessels not used on the main routes
and to work on extending the existing chartering agreements.
Sales and Results by Segments
In the financial year 2023, the Group’s total
revenue increased by EUR 63.9 million to EUR 835.3 million compared
to EUR 771.4 million in the financial year 2022.
Revenue from route operations (core business)
amounted to EUR 645.8 million, which is EUR 16.9 million more than
during the financial year 2022. The segment result from route
operations (core business) amounted to EUR 107.2 million compared
to EUR 39.7 million in the financial year 2022.
In the financial year 2023, the Group’s vessels
carried a total of 3.5 million passengers on the Estonia-Finland
route, up by 10.8% year-on-year. The number of transported cargo
units decreased by 20.4%. The revenue from the Estonia-Finland
route increased by EUR 20.2 million to EUR 298.0 million and the
segment result improved by EUR 27.3 million to EUR 79.0 million. In
the financial year 2023, the segment reflects the operations of the
following vessels:
- 1 January – 2 May 2023: the shuttle vessels MyStar, Megastar
and Oscar Wilde (formerly Star). The latter stopped operating the
route in May 2023 due to a charter agreement.
- 2 May – 11 October 2023: the shuttle vessels MyStar and
Megastar.
- 12 October – 31 December 2023: the shuttle vessels MyStar and
Megastar and the cruise ferry Victoria I that was added to the
route in October 2023.
The cruise ferry Silja Europa stopped operating
on the Estonia-Finland route in August 2022 due to a charter
agreement.
In the financial year 2023, the Group carried a
total of 1.7 million passengers on Finland-Sweden routes, down by
9.9% year-on-year. The number of transported cargo units decreased
by 41.6%. The routes’ revenue decreased by EUR 17.2 million to
EUR 257.1 million while the segment result improved by EUR
24.7 million to EUR 23.8 million, year-on-year. The decline in
passenger numbers and cargo volumes were mostly driven by less
vessels in operations, 26% of less trips made compared to the
financial year 2022 and change of route to Turku-Kappelskär. In the
financial year 2023, the segment reflects the operations of one
cruise ferry on Turku-Stockholm/Kapellskär routes and two cruise
ferries on the Helsinki-Stockholm route. The cruise ferry Galaxy I
stopped operating on the Turku-Stockholm route from September 2022
due to a charter agreement.
On Estonia-Sweden routes the number of carried
passengers increased by 19.0% in the financial year 2023 and
amounted to 0.6 million. The number of transported cargo units
increased by 3.0% year-on-year. The revenue of Estonia-Sweden
routes increased by EUR 13.9 million to EUR 90.8 million and
segment result improved by EUR 15.5 million to EUR 4.5 million,
year-on-year. Estonia-Sweden routes reflect the operation of two
cargo vessels on the Paldiski-Kapellskär route and one cruise ferry
on the Tallinn-Stockholm route.
Revenue from the segment Other increased by a
total of EUR 48.6 million and amounted to EUR 196.0 million. The
segment result was up by EUR 19.5 million year-on-year amounting to
EUR 54.5 million. As at the end of the financial year 2023, the
Group had 5 vessels on charter including 3 on long-term and 2 on
short-term charter.
As at the end of the 2023 financial year, the
long-term charters included:
- The vessel Atlantic Vision was chartered to Canada in November
2008. The current agreement has been signed until May 2024 with an
extension option for another 12 months.
- The shuttle vessel Oscar Wilde (formerly Star) was chartered
out from 5 May 2023 for 20 months with the option of extending the
charter by 2+2 year and the option of purchasing the shuttle.
- The cruise ferry Isabelle has been on long-term charter since 1
July 2023 and the charter agreement includes a purchase
option.
As at the end of the 2023 financial year, the
short-term charters included:
- The cruise ferry Galaxy I was chartered out in September 2022.
In September 2023, the agreement was extended for six months until
April 2024.
- The cruise ferry Silja Europa was chartered out in August 2022.
In October 2023, the charter agreement was extended until the end
of 2024.
During the year, the charter agreements of 2
vessels ended. The agreement for chartering out the cruise ferry
Romantika, signed in March 2022, was terminated on 1 September
2023. The cruise ferry Victoria I, the charter agreement of which
ended in July, started operating the Tallinn-Helsinki route on 12
October 2023.
Earnings
In the financial year 2023, the Group’s gross
profit improved by EUR 90.4 million amounting to EUR 203.8 million
compared to EUR 113.5 million in the financial year 2022. EBITDA
improved by EUR 78.7 million and amounted to EUR 214.5 million.
Amortisation and depreciation expense increased
by EUR 3.1 million to EUR 101.2 million year-on-year.
As a result of increased interest rates and
increased financing obligations related to the shuttle-vessel
Mystar, net finance costs increased by EUR 10.9 million
year-on-year to EUR 35.5 million in financial year 2023.
The Group’s unaudited net profit as at the end
of the 2023 financial year was EUR 78.9 million or EUR 0.106 per
share compared to a EUR 13.9 million or EUR 0.019 per share as at
the end of the 2022 financial year.
Investments
The Group’s investments in the financial year
2023 amounted to EUR 28.2 million.
Majority of the investments were related to the
maintenance and repair works of the vessels which lasted for a
total of 61 days during the financial year. Main investments in
vessels included the preparation of cruise ferry Victoria I for
cruise service operations between Tallinn and Helsinki, technical
works as well as interior upgrades of the cruise ferry Baltic Queen
and maintenance and repairs of the cruise ferries Silja Serenade,
Silja Symphony and Baltic Princess.
During the financial year, the Group opened 3
new Burger King restaurants in Riga and Kaunas. Additionally, the
hotel in Riga was re-opened in April 2023.
Financial Position
At the end of the financial year 2023, the
Group’s net debt amounted to EUR 607.3 million, a decrease of EUR
13.0 million compared to the end of third quarter of 2023. The net
debt to EBITDA ratio was 2.8 at the reporting date (2.7 as at 30
September 2023).
As at the end of the financial year 2023, the
Group’s cash and cash equivalents amounted to EUR 41.9 million (EUR
64.4 million as at 30 September 2023). The Group’s available credit
lines were scaled back from EUR 135 million as at 30 September 2023
to the pre-COVID-19 levels of EUR 75.0 million as at the end of the
reporting period. The total liquidity buffer (cash, cash
equivalents and unused credit facilities) amounted to EUR 116.9
million (EUR 199.4 million as at 30 September 2023). During the
financial year 2023, the Group repaid loans in the total amount of
EUR 487.6 million, which includes refinancing of loans in the
amount of EUR 298.0 million. The net repayment of interest-bearing
loans amounted to EUR 189.6 million in the financial year 2023.
During the financial year 2022, the Group repaid loans in the
amount of EUR 110.1 million. The current trade and other payables
amounted to EUR 85.4 million (EUR 83.6 million as at 30 September
2023).
Dividends
In 2018, the Group adopted a dividend policy
subject to which dividends of a minimum amount of EUR 0.05 per
share would be paid if the economic performance enables it.
Due to continued global uncertainties the Annual
General Meeting of Shareholders held on 13 June 2023 decided not to
pay dividends for the financial year 2022.
Concorded with the Supervisory Board of the
Group, the Management Board of the Group has decided to prepare a
proposal to the General Meeting of Shareholders to pay a dividend
of 6 cents per share in 2024 for the financial year of 2023.
Results of the Q4 2023
In the fourth quarter 2023 (1 October – 31
December), the Group carried 1.3 million passengers which is 3.3%
more compared to the same period last year.
The restaurant and shop sales on-board and
onshore increased by EUR 1.0 million and ticket revenue by EUR 2.4
million year-on-year. The cargo revenue decreased EUR 2.4 million
year-on-year. Revenues from hotel operations were up by EUR 0.5
million and other revenues by EUR 1.0 million year-on-year.
Revenues from chartering decreased by EUR 12.3 million compared to
fourth quarter 2022 due to less vessels being chartered out.
The Group’s unaudited revenue for the period
decreased by 4.9% year-on-year and amounted to EUR 193.7 million.
Unaudited EBITDA of the fourth quarter 2023 was EUR 36.8 million
(EUR 50.4 million in the fourth quarter 2022) and unaudited net
profit was EUR 2.2 million (net profit of EUR 16.7 million in the
fourth quarter 2022).
The financial result of the fourth quarter of
2023 was impacted by the following factors:
- The chartering of vessels supporting the stability of cash
flows.
- The cruise vessel Romantika remained in lay-up during the Q4
2023.
- Repayment of long-term loans in the amount of EUR 332.1
million, which includes refinancing of loans in the amount of EUR
298.0 million.
- Higher financing costs due to increased Euribor and transaction
costs related to refinancing.
Key Figures
For the
period |
Q4 2023 |
Q4 2022 |
Q4 2021 |
Jan-Dec
2023 |
Jan-Dec
2022 |
Jan-Dec
2021 |
Revenue (EUR million) |
193.7 |
203.7 |
166.6 |
835.3 |
771.4 |
476.9 |
Gross profit/loss (EUR
million) |
34.9 |
41.8 |
20.0 |
203.8 |
113.5 |
21.7 |
EBITDA¹ (EUR million) |
36.8 |
50.4 |
25.1 |
214.5 |
135.8 |
58.3 |
EBIT¹ (EUR million) |
11.4 |
23.5 |
0.9 |
113.3 |
37.7 |
-37.0 |
Net profit/loss for the period
(EUR million) |
2.2 |
16.7 |
-3.3 |
78.9 |
13.9 |
-56.6 |
|
|
|
|
|
|
|
Depreciation and amortisation
(EUR million) |
25.5 |
27.0 |
24.2 |
101.2 |
98.1 |
95.3 |
Capital expenditures¹ ²(EUR
million) |
5.9 |
179.7 |
9.2 |
28.2 |
203.3 |
20.2 |
Weighted average number of
ordinary shares outstanding |
743 569 064 |
743 569 064 |
743 569 064 |
743 569 064 |
743 569 064 |
694 444 381 |
Earnings/loss per share¹
(EUR) |
0.003 |
0.022 |
-0.004 |
0.106 |
0.019 |
-0.081 |
|
|
|
|
|
|
|
Number of passengers |
1 338 921 |
1 296 047 |
1 122 892 |
5 705 600 |
5 462 085 |
2 961 975 |
Number of cargo units |
76 198 |
96 052 |
101 486 |
323 990 |
409 769 |
369 170 |
Average number of
employees |
4 879 |
4 947 |
4 743 |
4 879 |
5 023 |
4 360 |
|
|
|
|
|
|
|
As at |
31.12.2023 |
30.09.2023 |
|
31.12.2023 |
31.12.2022 |
31.12.2021 |
Total assets (EUR
million) |
1 555.2 |
1 597.4 |
|
1 555.2 |
1 691.6 |
1 585.9 |
Total liabilities (EUR
million) |
769.5 |
1 152.0 |
|
769.5 |
984.7 |
893.4 |
Interest-bearing liabilities
(EUR million) |
649.3 |
684.8 |
|
649.3 |
853.5 |
779.9 |
Net debt¹ (EUR million) |
607.3 |
620.4 |
|
607.3 |
620.4 |
652.4 |
Net debt to EBITDA¹ |
2.8 |
2.7 |
|
2.8 |
2.7 |
11.2 |
Total equity (EUR
million) |
785.8 |
783.7 |
|
785.8 |
706.9 |
692.5 |
Equity ratio¹ (%) |
51% |
49% |
|
51% |
42% |
44% |
|
|
|
|
|
|
|
Number of ordinary shares
outstanding |
743 569 064 |
743 569 064 |
|
743 569 064 |
743 569 064 |
743 569 064 |
Shareholders’ equity per share
(EUR) |
1.06 |
1.05 |
|
1.06 |
0.95 |
0.93 |
|
|
|
|
|
|
|
Ratios¹ |
Q4 2023 |
Q4 2022 |
Q4 2021 |
Jan-Dec
2023 |
Jan-Dec
2022 |
Jan-Dec
2021 |
Gross margin (%) |
18.0% |
20.5% |
12.0% |
24.4% |
14.7% |
4.5% |
EBITDA margin (%) |
19.0% |
24.8% |
15.1% |
25.7% |
17.6% |
12.2% |
EBIT margin (%) |
5.9% |
11.5% |
0.5% |
13.6% |
4.9% |
-7.8% |
Net profit/loss margin
(%) |
1.1% |
8.2% |
-2.0% |
9.4% |
1.8% |
-11.9% |
|
|
|
|
|
|
|
ROA (%) |
7.0% |
2.4% |
-2.4% |
7.0% |
2.4% |
-2.4% |
ROE (%) |
10.6% |
2.1% |
-8.2% |
10.6% |
2.1% |
-8.2% |
ROCE (%) |
8.4% |
3.1% |
-2.8% |
8.4% |
3.1% |
-2.8% |
1 Alternative performance measures based on ESMA guidelines are
disclosed in the Alternative Performance Measures section of this
Interim Report.
2 Does not include additions to right-of-use assets.
EBITDA: result from operating activities before
net financial items, share of profit of equity-accounted investees,
taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/
weighted average number of shares outstanding
Equity ratio: total equity / total assets
Shareholder’s equity per share: shareholder’s
equity / number of shares outstanding
Gross profit/loss margin: gross profit / net
sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net
sales
Capital expenditure: additions to property, plant
and equipment – additions to right-of-use assets + additions to
intangible assets
ROA: earnings before net financial items, taxes
12-months trailing / average total assets
ROE: net profit 12-months trailing / average
shareholders’ equity
ROCE: earnings before net financial items, taxes
12-months trailing / (total assets – current liabilities (average
for the period))
Net debt: interest-bearing liabilities less cash
and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months
trailing
Consolidated statement of profit or loss
and other comprehensive income
Unaudited, in thousands of EUR |
Q4 2023 |
Q4 2022 |
Jan-Dec
2023 |
Jan-Dec
2022 |
Revenue (Note 3) |
193 737 |
203 661 |
835 325 |
771 387 |
Cost of sales |
-158 809 |
-161 827 |
-631 491 |
-657 917 |
Gross profit/loss |
34 928 |
41 834 |
203 834 |
113 470 |
|
|
|
|
|
Sales and marketing expenses |
-11 381 |
-11 399 |
-42 162 |
-38 796 |
Administrative expenses |
-14 978 |
-12 658 |
-52 472 |
-47 708 |
Other operating income |
2 893 |
5 759 |
4 275 |
10 871 |
Other operating expenses |
-103 |
-80 |
-171 |
-164 |
Result from operating
activities |
11 359 |
23 456 |
113 304 |
37 673 |
|
|
|
|
|
Finance income (Note 4) |
528 |
167 |
1 332 |
215 |
Finance costs (Note 4) |
-10 061 |
-7 024 |
-36 864 |
-24 871 |
Share of profit/loss of equity-accounted investees |
-75 |
-90 |
-75 |
-90 |
Profit/loss before income
tax |
1 751 |
16 509 |
77 697 |
12 927 |
|
|
|
|
|
Income tax |
413 |
214 |
1 175 |
1 008 |
|
|
|
|
|
Net profit/loss for the
period |
2 164 |
16 723 |
78 872 |
13 935 |
Net profit/loss
for the period attributable to equity holders of the Parent |
2 164 |
16 723 |
78 872 |
13 935 |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
Items that may be reclassified to profit or loss |
|
|
|
|
Exchange differences on translating foreign operations |
-201 |
-11 |
-172 |
480 |
Other comprehensive income for
the period |
-201 |
-11 |
-172 |
480 |
|
|
|
|
|
Total comprehensive
profit/loss for the period |
1 963 |
16 712 |
78 700 |
14 415 |
Total comprehensive profit/loss for the period attributable to
equity holders of the Parent |
1 963 |
16 712 |
78 700 |
14 415 |
|
|
|
|
|
Basic
and diluted profit/loss per share (in EUR, Note 5) |
0.003 |
0.022 |
0.106 |
0.019 |
Consolidated statement of financial position
Unaudited, in thousands of EUR |
31.12.2023 |
31.12.2022 |
ASSETS |
|
|
Cash and cash equivalents |
41 921 |
114 935 |
Trade and other receivables |
31 766 |
31 380 |
Prepayments |
7 661 |
9 379 |
Prepaid income tax |
193 |
37 |
Inventories |
41 411 |
39 965 |
Current assets |
122 952 |
195 696 |
|
|
|
Investments in equity-accounted investees |
0 |
75 |
Other financial assets and prepayments |
4 794 |
3 622 |
Deferred income tax assets |
21 840 |
21 840 |
Investment property |
300 |
300 |
Property, plant and equipment |
1 377 664 |
1 438 286 |
Intangible assets |
27 671 |
31 823 |
Non-current assets |
1 432 269 |
1 495 946 |
TOTAL ASSETS |
1 555 221 |
1 691 642 |
|
|
|
LIABILITIES AND EQUITY |
|
|
Interest-bearing loans and borrowings |
104 097 |
165 049 |
Trade and other payables |
85 406 |
86 934 |
Payables to owners |
6 |
6 |
Income tax liability |
10 |
35 |
Deferred income |
34 788 |
44 222 |
Current liabilities |
224 307 |
296 246 |
|
|
|
Interest-bearing loans and borrowings |
545 160 |
688 465 |
Non-current liabilities |
545 160 |
688 465 |
Total liabilities |
769 467 |
984 711 |
|
|
|
Share capital |
349 477 |
349 477 |
Share premium |
663 |
663 |
Reserves |
67 056 |
66 363 |
Retained earnings |
368 558 |
290 428 |
Equity attributable to equity holders of the Parent |
785 754 |
706 931 |
Total equity |
785 754 |
706 931 |
TOTAL LIABILITIES AND EQUITY |
1 555 221 |
1 691 642 |
Consolidated statement of cash flows
Unaudited, in thousands of EUR |
Q4 2023 |
Q4 2022 |
Jan-Dec
2023 |
Jan-Dec
2022 |
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Net profit/loss for the period |
2 164 |
16 723 |
78 872 |
13 935 |
Adjustments |
34 603 |
33 557 |
135 324 |
122 147 |
Changes in: |
|
|
|
|
Receivables and prepayments related to operating activities |
6 622 |
10 964 |
1 340 |
-3 638 |
Inventories |
-1 653 |
-208 |
-1 446 |
-5 334 |
Liabilities related to operating activities |
-7 754 |
-3 618 |
-10 457 |
17 415 |
Changes in assets and liabilities |
-2 785 |
7 138 |
-10 563 |
8 443 |
Cash generated from operating activities |
33 982 |
57 418 |
203 633 |
144 525 |
Income tax repaid/paid |
-75 |
-112 |
-186 |
-227 |
NET CASH FROM/USED OPERATING ACTIVITIES |
33 907 |
57 306 |
203 447 |
144 298 |
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Purchase of property, plant, equipment and intangible assets |
-5 882 |
-179 689 |
-28 131 |
-203 322 |
Proceeds from disposals of property, plant, equipment |
369 |
25 |
613 |
2 768 |
Interest received |
528 |
209 |
1 332 |
215 |
NET CASH USED IN INVESTING ACTIVITIES |
-4 985 |
-179 455 |
-26 186 |
-200 339 |
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Proceeds from loans received (Note 8) |
59 972 |
196 290 |
59 972 |
196 290 |
Repayment of loans received (Note 8) |
-95 954 |
-39 025 |
-251 431 |
-110 055 |
Change in overdraft (Note 8) |
0 |
-11 811 |
-15 |
-165 |
Payment of lease liabilities (Note 8) |
-4 494 |
-4 313 |
-21 519 |
-17 157 |
Interest paid |
-7 615 |
-5 494 |
-32 827 |
-23 516 |
Payment of transaction costs related to loans |
-3 343 |
-1 376 |
-4 455 |
-1 977 |
NET CASH FROM/USED IN FINANCING ACTIVITIES |
-51 434 |
134 271 |
-250 275 |
43 420 |
|
|
|
|
|
TOTAL NET CASH FLOW |
-22 512 |
12 122 |
-73 014 |
-12 621 |
|
|
|
|
|
Cash and cash equivalents at the beginning of period |
64 433 |
102 813 |
114 935 |
127 556 |
Change in cash and cash equivalents |
-22 512 |
12 122 |
-73 014 |
-12 621 |
Cash and cash equivalents at the end of period |
41 921 |
114 935 |
41 921 |
114 935 |
Anneli Simm
Investor Relations Manager
AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee
- Tallink Grupp 2023 Q4 ENG
- Tallink Grupp 2023 Q4 Financial Data
- AS Tallink Grupp Q4 2023 Presentation
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