As expected, NTG reports marked progress for the first quarter, in which growth took place in all key figures.
Progress continues at listed freight forwarder Nordic Transport Group (NTG) in the first quarter – a result already hinted at when the company last week upgraded its full-year guidance.
Revenue grew by 41.4% compared to the same period last year and thus came to DKK 2.18bn (USD 309.2m). In last week’s upgrade, the top line for the quarter was expected to land at roughly DKK 2.2bn.
Of the 41.4% growth, 27.2% is organic growth, writes NTG in the quarterly report and points to lack of capacity and higher energy prices as the underlying factors.
The adjusted operating result increased by 57.3% compared to Q1 2021 and landed at DKK 159.5m.
The bottom line for the first quarter came to DKK 99.2m against DKK 66.6m in the same period last year.
Furthermore, the company’s conversion ratio, which shows the operating result’s share of the gross profit, increased to 37.3% from 32.2%.
Momentum grew among uncertainty
Like with many other freight forwarders, earnings have benefited from the hectic conditions in the transportation sector.
The high demand for transport and a simultaneous lack of capacity have thus contributed positively to NTG’s business in Q1 but other uncertainty factors have also played a part.
”Implementation of the final phase of the EU Mobility Package and the war in Ukraine further added to uncertainties affecting global trade flows,” reads the financial report.
Like many other companies, NTG has handed off its Russian and Belarussian activities. The company’s business in Kazakhstan has been closed down as well. Overall, business in the three countries have represented a revenue of DKK 83m and DKK 3m in operating profit.
NTG maintains its Ukrainian business, which continues as an independent unit.
”The suspension of shipments to, from, and transiting Russian and Belarusian territory remains in force following the divestment, and NTG continues to do its utmost to support and alleviate adverse implications for all customers affected by the war and ensuing suspension of services,” says the management report.
Full-year expectations follow the upgrade announced last week.
Revenue is expected to land in the range of DKK 9.7-10.2bn, while the adjusted operating result for the whole year is expected to land at DKK 700-750m.
