10 March 2010

Revenue declined for the full year, but began improving in Q3

In 2009, Norbert Dentressangle Group’s consolidated revenue totalled €2,719.0 million, down 12.5% on a published basis versus 2008. At constant exchange rates, 2009 consolidated revenue declined 10.1%, with Transport revenue down 13.3% and Logistics revenue down 6.0%. After bottoming out with a 14.0% contraction in Q2, the revenue decline slowed to 10.2% in Q3 and shrank to 3.5% in Q4, with Transport revenue notably showing growth over end-2008.

Efforts undertaken as early as Q4 2008 to lower operating expenses helped cushion the fall in revenue. Recurring operating profit advanced 11.0% to €87.9 million, representing a recurring operating margin of 3.2%, up from 2.5% in 2008.

The Logistics business demonstrated its operating efficiency by reporting recurring operating profit up 14.0% to €48.7 million. The performance was achieved through a combination of efforts and factors, including warehouse optimisation, reductions in temporary employee levels, the cushioning effect of open book contracts in the UK, and day-to-day efforts to tightly manage resources. Recurring operating margin in Logistics advanced 0.8 percentage points, to 3.9%.

In Transport, the decline in margin from lower sales was significantly offset by a rapid and steep 14.0% cut in the vehicle fleet, coupled with the curtailed use of sub-contractors and reduced overheads. Recurring operating profit in the Transport business increased 9.0%, to €39.5 million, representing recurring operating margin of 2.7%, versus 2.1% in 2008.

Operating profit before goodwill and goodwill impairment (EBITA) totalled €80.4 million, down 18.0% versus 2008, when EBITA included €21.0 million in capital gains from the sale of several warehouses. In 2009, disposals generated a gain of €3.0 million.

Net financial expense improved significantly to €25.8 million, down from €34.4 million in 2008, owing to the reduction in net debt and lower interest rates. The improvement partially offset the decline in EBITA. Pre-tax profit thus came to €50.9 million, down 15.0% against €59.7 million in 2008.

During the year, the Group recorded the tax impact arising from the restructuring of the former Christian Salvesen activities. The Group thus recognised a €36.0 million tax gain, after taking that item into account. In 2009, Group net income totalled €85.7 million.

At 31st December 2009, net debt stood at €445.0 million, versus €553.0 million at end 2008. Accordingly, the net debt/EBITDA ratio improved to 2.3 times. Gearing therefore fell to 111.0%, down from 178.0% at end 2008.

Visibility on business volumes remained weak at the beginning of 2010. Accordingly, the Group will continue to closely monitor and adapt its operating resources to reported revenue levels, while continuing to develop.