Financial Results
In 2020, in the face of uncertainty and severe macroeconomic instability, the Company demonstrated an increase in operating and financial results, strengthened the position in the industry, continued to expand the network of routes and improve the quality of customer
The financial results are based on:
- the Company’s success in provision of production assets for the business, i.e. the average railcar fleet had been increased by 14.6% compared to 2019 with a railcar turnover speedup to 11.9 days (−3.9% year-on-year), a technology was adopted to exchange the railcar fleet with partner companies and to use the third-party containers in scope of up to 8% of the Company’s fleet;
- development of operations in a number of market segments: increasing traffic volumes in cooperation with the Vostochniy port, the return of the Company to the transit market through Kazakhstan for the first time since TransContainer withdrawal from JSC UTLC and sale of JSC Kedentransservice;
- increase in management and operational efficiency – a record-high level of labour productivity was achieved in transportations (745 TEUs / person-year, +19.9% compared to 2019) and adjusted revenue (RUB 1,024 thousand / person-month, +10.1% compared to 2019), and the container empty run ratio was minimum for the last five years (17.0%, −0.2 p. p. year-on-year).
Item | 2020 | 2019 | Year-on-year change | |
---|---|---|---|---|
RUB mln | % | |||
Total revenue | 103,497 | 86,179 | 17,318 | 20.1 |
Adjusted revenueAdjusted Revenue is calculated as total revenue less cost of integrated freight forwarding and logistics services. | 40,776 | 37,896 | 2,880 | 7.6 |
Adjusted | 26,701 | 23,286 | 3,415 | 14.7 |
EBITDAEBITDA is defined as profit for the period before income tax, interest expense and depreciation and amortisation. | 22,645 | 19,987 | 2,658 | 13.3 |
Adjusted EBITDA | 55.5 | 52.7 | - | |
Profit for the period | 12,659 | 11,750 | 909 | 7.7 |
Adjusted net profit | 31.0 | 31.0 | - | 0 p. p. |
Debt | 63,223 | 22,352 | 40,871 | 182.9 |
Net debtNet Debt is calculated as long-term debt, finance lease obligations, short-term debt and current portion of the long-term debt less cash and cash equivalents. | 54,631 | 18,772 | 35,859 | 191.0 |
LTM EBITDALTM EBITDA is calculated as EBITDA for the past 12 months. | 22,645 | 19,987 | 2,658 | 13.3 |
Net debt / LTM EBITDA | 2.41 | 0.94 | 1.47 | - |
Equity capital | 22,509 | 48,434 | | –53.5 |
Return on equity (%) | 56.2 | 24.3 | - | |
The volumes of revenue-generating transportations controlled by the Company increased by 16.2% year-on-year, to 1,946 thousand TEUs, and the adjusted revenue raised by 7.6% year-on-year and amounted RUB 40,776 mln with net revenue of 12,659 mln (7.7% increase year-on-year).
The key indicators of the Company’s economic efficiency – net profit margin and return on equity – were 31.0 and 56.2% correspondingly.
As at 31 December 2020, the Company’s total debt was RUB 63,223 mln with net debt of only RUB 54,631 mln, bringing the net debt to EBITDA ratio to 2.4x.
Item | 2020 | 2019 | Year-on-year change | |
---|---|---|---|---|
RUB mln | % | |||
Total revenue | 103,497 | 86,179 | 17,318 | 20.1 |
Other operating income | 1,224 | 1,161 | 63 | 5.4 |
Operating expenses | | | | 24.9 |
Operating profit | 15,299 | 15,771 | –472 | –3.0 |
Interest expenses | –1,856 | –1,118 | –738 | 66.0 |
Interest income | 522 | 368 | 154 | 41.8 |
Foreign exchange gain, net | 292 | –229 | 521 | –227.5 |
Share of result of associates and JVs | 102 | 583 | –481 | –82.5 |
Other financial results, net | 1,861 | 21 | 1,840 | 8,761.9 |
Profit before income tax | 16,220 | 15,396 | 824 | 5.4 |
Income tax expenses | –3,561 | –3,646 | 85 | –2.3 |
Profit for the period | 12,659 | 11,750 | 909 | 7.7 |
Other comprehensive income | 1,239 | –555 | 1,794 | –323.2 |
Remeasurements and other reserves for post-employment benefit plans | 144 | –131 | 275 | –209.9 |
Exchange rate differences from the conversion of other foreign divisions into the presentation currency | 212 | –75 | 287 | –382.7 |
Share in the conversion of financial information on joint ventures into the presentation currency | 883 | –349 | 1,232 | –353.0 |
Total comprehensive income | 13,898 | 11,195 | 2,703 | 24.1 |
Adjustments and Additional Financial Information
The majority of the TransContainer’s services are provided with the use of third-party services. Accordingly, third-party charges for such services are presented within the Company’s revenues and expenses. In particular, such charges include the value of railway tariffs and the third-party charges related to principal activities.
Third-party expenses, including railway tariff, are included in operating expenses on the services of third-parties belonging to core activities.
For analytical purposes, the Company includes the third parties’ share in the Company’s revenues and expenses.
Item | 2020 | 2019 | Year-on-year change | |
---|---|---|---|---|
RUB mln | % | |||
Total revenue | 103,497 | 86,179 | 17,318 | 20.1 |
Third-party charges related to principal activities | | | | 29.9 |
Adjusted revenueRevenue less cost of co-contractors. | 40,776 | 37,896 | 2,880 | 7.6 |
Item | 2020 | 2019 | Year-on-year change | |
---|---|---|---|---|
RUB mln | % | |||
Integrated freight forwarding and logistics services | 96,665 | 79,895 | 16,770 | 21.0 |
Third-party charges related to integrated freight forwarding and logistics services | | | | 29.9 |
Adjusted revenue related to integrated freight forwarding and logistics services | 33,944 | 31,612 | 2,332 | 7.4 |
Item | 2020 | 2019 | Year-on-year change | |
---|---|---|---|---|
RUB mln | % | |||
Operating expenses | 89,422 | 71,569 | 17,853 | 24.9 |
Third-party charges related to principal activities | | | | 29.9 |
Adjusted operating expenses | 26,701 | 23,286 | 3,415 | 14.7 |
Some items used, such as adjusted revenue, adjusted operating expenses, EBITDA, adjusted EBITDA margin and adjusted net profit margin, are not IFRS financial metrics and constitute supplementary indices of the Company’s operating activities. They are used as additional analytical tools with limited applicability, so they shall be used neither separately nor together instead of IFRS metrics.