Touax: HALF-YEAR RESULTS 2023 Solid business model and operating
performance
PRESS
RELEASE Paris, 13
September 2023 - 5.45pm
YOUR OPERATIONAL
LEASING SOLUTION FOR SUSTAINABLE
TRANSPORT
HALF-YEAR
RESULTS 2023
Solid business
model and
operating performance
-
Stable business
volumes (+0.9%)
- Stable
operating performance (EBITDA
rate1 of 36.6%)
- Group net
profit of
€5.1
million
|
"Touax confirms the strength of its business
model in a slowing economic environment. Timely investments in
quality logistics assets on long-term leases and the mix of
different segments in which we operate are boosting recurring
revenues. Through two refinancing transactions, we have also
extended the maturity of Touax SCA's debt to mid-2027, enabling us
to develop our investment strategy in support of sustainable
transport," say Fabrice and Raphaël Walewski, Touax SCA's managing
partners.
Restated revenue from Group activities (at €79.1
million, i.e. +0.9%) and consolidated EBITDA (at €28.9 million,
i.e. -1.9%) were broadly stable compared with the end of June 2022.
This performance was achieved in a largely anticipated context of
normalisation in the Containers business after exceptionally
favourable years in 2021 and 2022 for the industry as a whole.
The Group share of net profit was €5.1 million
at 30 June 2023, compared with €7.6 million at end-June 2022 and
€7.5 million for the full year 2022. This profit includes net
exceptional income of €2.6 million (exceptional income of €3.5
million on the purchase of the minority stake in the Modular
Buildings business; exceptional provision of €0.9 million due to a
dispute).
Touax SCA has improved its debt profile by
extending the maturity of its financing:
- In June, the Group
repaid €10.0 million of the €15.0 million Euro-PP loan maturing in
July 2023 in cash, and the balance by issuing €5.0 million new
tranche on the 2022 sustainable-linked Euro-PP bond maturing in
June 2027;
- Refinancing in July
of the disintermediated loan of €40.0 million from a debt fund
maturing in June 2024 by a bank loan for the same amount maturing
in May 2027, in the form of a club deal with a syndicate of five
banks.
These transactions follow the redemption in full
of the TSSDI hybrid capital on 01 August 2022, which had already
simplified the financing structure and optimised the cost of
long-term resources against a backdrop of rising interest rates in
the eurozone.
SIGNIFICANT ITEMS IN THE FINANCIAL
STATEMENTS
|
Key figures |
June 2023 |
June 2022 |
Dec. 2022 |
|
(in € million) |
|
Restated Revenue (*)
from activities |
79.1 |
78.3 |
161.5 |
|
Of which Freight Railcars |
27.9 |
26.4 |
56.1 |
|
Of which River barges |
7.5 |
7.6 |
17.5 |
|
Of which Containers |
35.1 |
41.3 |
81.4 |
|
Of which Miscellaneous and eliminations |
8.6 |
3.0 |
6.4 |
|
EBITDA |
28.9 |
29.5 |
57.9 |
|
Current operating income |
14.7 |
16.6 |
31.1 |
|
Other financial income and expenses |
2.6 |
0.0 |
0.0 |
|
Operating income |
17.3 |
16.6 |
31.1 |
|
Financial result |
-9.8 |
-6.8 |
-15.4 |
|
Profit before taxes |
7.6 |
9.8 |
15.7 |
|
Corporate tax |
-1.4 |
-1.5 |
-6.3 |
|
Consolidated net profit (Group's share) |
5.1 |
7.6 |
7.5 |
|
Earnings per
share (€) |
0.72 |
1.08 |
1.07 |
|
Total non-current assets |
381.2 |
353.2 |
394.6 |
|
Total assets |
564.3 |
585.0 |
571.7 |
|
Total shareholders' equity |
153.5 |
170.2 |
153.7 |
|
Net financial debt (a) |
275.2 |
242.2 |
280.8 |
|
Operating cash flow (b) |
17.4 |
11.0 |
-1.5 |
|
Loan to Value ratio (c) |
57.4% |
56.0% |
59.5% |
| |
|
|
|
|
(a) including € 226.7m non recourse debt at 30 June 2023 |
|
|
|
|
(b) including €20.7m net equipment acquisitions (vs €16.3m end of
June 2022) |
|
|
|
(c) LTV : Consolidated gross financial debt / Total
assets less goodwill and intangible fixed assets |
|
(*) To provide a clearer understanding of
business performance, the key indicators in the Group's activity
report are presented differently from the IFRS income statement.
For this reason, no distinction is made between management on
behalf of third parties, which is presented exclusively as an
agent.This presentation has no impact on EBITDA, operating income
or net income. The accounting presentation of revenue from
activities is given in the appendix to this press release.
STABLE
BUSINESS IN THE FIRST HALF OF
2023
For the first half of the 2023 financial year,
restated revenues from activities came to €79.1 million (€78.9
million on a like-for-like basis), a slight increase of 0.9%
compared with the same period of 2022 (+0.7% on a like-for-like
basis).
Owned activity totalled €73.9 million at 30 June
2023, up by €1.8 million compared with the end of June 2022. It
benefited from the favourable trend in leasing revenue (+€0.9
million). Utilisation rates for freight railcars (89%), river
barges (100%) and containers (95%) were high at 30 June 2023. Sales
of owned equipment also increased by €0.8 million.
Management activity was down by €1.0 million in
the first half, due to a €2.0 million reduction in syndication
fees. However, sales fees rose by €0.9 million, reflecting the
higher level of second-hand containers available for sale in 2023
in a market that is normalising.
ANALYSIS OF CONTRIBUTION BY
DIVISION
Restated revenues for the
Freight Railcars
division amounted to €27.9 million at 30 June 2023, an increase of
€1.5 million.
This change is attributable to the €1.9 million
increase in leasing activity (+7.7%). The average utilisation rate
of the owned wagon fleet was 88.5% in the first half of 2023,
compared with 87% in the first half of 2022. The absence of
syndication to investors in the first half of the year explains the
€0.3 million reduction in management activity.
Restated revenues for the River
Barges division were down slightly by €0.1 million at the
end of June 2023. Leasing revenue rose by €0.4 million, benefiting
from a fleet utilisation rate of 100% throughout the half-year and
the latest investments made. Ancillary services fell by €0.5
million: chartering activity on the Rhine basin had been very
buoyant over the same period in 2022.
Restated revenues for the
Containers division amounted to €35.1 million at
end-June 2023, down €6.2 million against a backdrop of
normalisation across the industry in 2023, after exceptional years
in 2021 and 2022.
Nevertheless, leasing revenue rose by 11.2% over
the half year (+€0.8 million). Ownership activity was slowed by a
less buoyant market for new containers, resulting in a €4.6 million
fall in sales of owned equipment and a €1.7 million fall in
ancillary services (pick-up charges).
With fewer transactions carried out, syndication
fees also fell by €1.5 million. However, given the higher volume of
used containers available for sale, sales fees rose by €0.9
million.
Lastly, revenues from the Modular
Buildings business, reported under "Other", rose sharply
to €8.6 million (up €5.6 million over the first half). Touax
produced and delivered a large number of orders at the start of the
year, after a low point in 2022 when the pandemic ended.
RECURRING PROFITABILITY
EBITDA for the first half was
down slightly by €0.6 million (-1.9%) at €28.9 million.
EBITDA for the Freight
Railcars division came to €14.9 million, down
slightly by €0.3 million, following a €1.6 million increase in
operating expenses relating to the maintenance and repair
cycle.
The River
Barges division recorded EBITDA of €2.5 million,
up by €0.4 million (+19%), due to lower chartering costs, while
leasing revenues performed well over the half-year.
EBITDA for the Containers
division fell by €3.7 million to €8.8 million at 30 June 2023, due
to lower half-year revenues (74% of the €6.2 million fall was
attributable to the normalisation of container sales prices).
Conversely, the cost of equipment sales improved by €2.7
million.
The Modular
Buildings business, on the other hand, saw its
EBITDA rise by €3.3 million, well above breakeven thanks to a
significant increase in equipment deliveries.
The Group's depreciation, amortisation and
provisions increased by €1.3 million, due to the gradual increase
in investments in Touax's balance sheet over the last three years.
Current operating income
therefore came to €14.7 million, €1.8 million lower than at
end-June 2022.
Touax recorded net exceptional income of €2.6
million in the first half of 2023, linked on the one hand to
accounting income (non-cash) of €3.5 million relating to the
purchase in January of minority interests in the Modular Buildings
business in Africa, and on the other hand to a provision of $1.0
million following the conviction in the United States of the former
subsidiary of Modular Buildings in that country for an old
dispute.
The net financial
expense was €9.8 million, compared with €6.8
million at end-June 2022. The €3.0 million increase in net
financial expense is mainly due to the full effect on 2023 of the
rise in interest rates, which accelerated from the end of the first
quarter of 2022, impacting the Freight Railcars and Containers
divisions.
Net profit attributable to the
Group was €5.1 million (compared with €7.6 million at 30
June 2022), representing 6.4% of restated revenue from
activities.
A BALANCED
FINANCIAL STRUCTURE
Touax's balance sheet strength is reflected in a
lower loan-to-value ratio of 57.4% at 30 June
(compared with 59.5% at 31 December 2022 and 56.0% at 30 June
2022). The financial structure has been reinforced by the recent
debt refinancing carried out by the parent company Touax SCA,
providing greater certainty over the debt profile until
mid-2027.
Shareholders' equity was stable
at 153.5 million euros, compared with 153.7 million euros at the
end of December 2022. The allocation of the half-year profit was
offset by distributions (dividend 2022 and payment to general
partners) totalling €1.5 million, by a negative change in reserves
of €1.5 million mainly due to translation adjustments, and by a
€2.3 million reduction in minority interests in the Freight
Railcars business.
Consolidated cash
position fell by €10.8 million compared with the
end of December, with €10.0 million used in June to repay part of
the Euro-PP debt. The level of cash on the balance sheet at 30 June
2023 remains comfortable, at 45.2 million euros, and includes a
temporary working capital surplus of 11 million euros on the
container management business.
OUTLOOK
The Touax Group confirms its strategy of making
recurring investments in quality assets leased over a long period,
while remaining cautious in the face of current market
conditions.
Touax's activities should continue to benefit
from the growing awareness of the need to decarbonise the economy
and transport and the need to renew infrastructure.
Touax, which enjoys a unique position in
sustainable transport, is increasingly committed to respecting the
environment and good practices in terms of social responsibility
and governance. Touax's extra-financial ESG rating (by EcoVadis) is
among the best in its industry2, and the Group is building on this
strength by working on a continuous improvement plan.
Touax's aim is to provide its customers with an
ever-better service in the field of sustainable transport. Our
various asset classes benefit from the development of
infrastructure, e-commerce and intermodal logistics, corresponding
to the expectations of consumers, manufacturers, public
authorities, lenders and investors.
UPCOMING DATES
- 13 September 2023:
Videoconference presentation of half-year results in French
- 14 September 2023:
Videoconference presentation of half-year results in English
- 14 November 2023:
Revenue for the 3rd quarter 2023
The TOUAX Group leases
tangible assets (freight railcars, river barges and containers)
every day throughout the world, both for its own account and on
behalf of investors. With €1.2 billion under management, TOUAX is
one of Europe's leading leasing companies for this type of
equipment.
TOUAX is listed in
Paris on EURONEXT - Compartment C (ISIN Code FR0000033003) and is
included in the CAC® Small, CAC® Mid & Small and
EnterNext©PEA-PME 150 indices.
For more information:
www.touax.com
Your contacts :
TOUAX ACTIFIN
Fabrice & Raphaël
WALEWSKI Ghislaine
Gasparetto
touax@touax.com
gasparetto@actifin.fr
Tel : +33 1 46 96 18
00 Tel: +33 1 56 88
11 11
APPENDICES
1 - Analysis of
restated revenue from
activities
|
Restated Revenue
from activities |
Q1 2023 |
Q2 2023 |
H1 2023 |
Q1 2022 |
Q2 2022 |
H1 2022 |
Variation |
|
(in €
thousand) |
|
Leasing revenue on owned equipment |
17,139 |
17,510 |
34,649 |
15,509 |
16,909 |
32,418 |
2,231 |
|
Ancillary services |
5,030 |
4,271 |
9,301 |
5,732 |
4,884 |
10,616 |
-1,315 |
|
Total leasing activity |
22,169 |
21,781 |
43,950 |
21,241 |
21,793 |
43,034 |
916 |
|
Sales of owned equipment |
13,053 |
16,895 |
29,948 |
14,862 |
14,249 |
29,111 |
837 |
| Total
sales of equipment |
13,053 |
16,895 |
29,948 |
14,862 |
14,249 |
29,111 |
837 |
|
Total of owned
activity |
35,222 |
38,676 |
73,898 |
36,103 |
36,042 |
72,145 |
1,753 |
|
Syndication fees |
0 |
544 |
544 |
0 |
2,522 |
2,522 |
-1,978 |
|
Management fees |
1,021 |
1,018 |
2,039 |
978 |
986 |
1,964 |
75 |
|
Sales fees |
861 |
1,710 |
2,571 |
336 |
1,349 |
1,685 |
886 |
|
Total of management activity |
1,882 |
3,272 |
5,154 |
1,314 |
4,857 |
6,171 |
-1,017 |
|
Other capital gains on disposals |
1 |
1 |
2 |
0 |
0 |
0 |
2 |
|
Total Others |
1 |
1 |
2 |
0 |
0 |
0 |
2 |
|
Total Restated Revenue from activities |
37,105 |
41,949 |
79,054 |
37,417 |
40,899 |
78,316 |
738 |
2 - Reconciliation of
accounting presentation to restated presentation
|
Revenue from
activities |
H1 2023 |
Retreatment |
Restated |
H1 2022 |
Retreatment |
Restated |
|
(in €
thousand) |
H1 2023 |
H1 2022 |
|
Leasing revenue on owned equipment |
34,649 |
|
34,649 |
32,418 |
|
32,418 |
|
Ancillary services |
11,637 |
-2,336 |
9,301 |
15,211 |
-4,595 |
10,616 |
| Total
leasing activity |
46,286 |
-2,336 |
43,950 |
47,629 |
-4,595 |
43,034 |
|
Sales of owned equipment |
29,948 |
|
29,948 |
29,111 |
|
29,111 |
| Total
sales of equipment |
29,948 |
|
29,948 |
29,111 |
|
29,111 |
|
Total of owned
activity |
76,234 |
-2,336 |
73,898 |
76,740 |
-4,595 |
72,145 |
|
Leasing revenue on managed equipment |
18,903 |
-18,903 |
0 |
21,736 |
-21,736 |
0 |
|
Syndication fees |
544 |
|
544 |
2,522 |
|
2,522 |
|
Management fees |
752 |
1,287 |
2,039 |
556 |
1,408 |
1,964 |
|
Sales fees |
2,571 |
|
2,571 |
1,685 |
|
1,685 |
|
Total of management activity |
22,770 |
-17,616 |
5,154 |
26,499 |
-20,328 |
6,171 |
|
Other capital gains on disposals |
2 |
|
2 |
0 |
|
0 |
|
Total Others |
2 |
0 |
2 |
0 |
0 |
0 |
| Total
Revenue from
activities |
99,006 |
-19,952 |
79,054 |
103,239 |
-24,923 |
78,316 |
|
Restated Revenue
from activities |
Q1 2023 |
Q2 2023 |
H1 2023 |
Q1 2022 |
Q2 2022 |
H1 2022 |
Variation |
|
(in €
thousand) |
|
Leasing revenue on owned equipment |
11,124 |
11,615 |
22,739 |
10,544 |
11,142 |
21,686 |
1,053 |
|
Ancillary services |
1,938 |
1,937 |
3,875 |
1,858 |
1,177 |
3,035 |
840 |
|
Total leasing activity |
13,062 |
13,552 |
26,614 |
12,402 |
12,319 |
24,721 |
1,893 |
|
Sales of owned equipment |
76 |
132 |
208 |
110 |
238 |
348 |
-140 |
| Total
sales of equipment |
76 |
132 |
208 |
110 |
238 |
348 |
-140 |
|
Total of owned
activity |
13,138 |
13,684 |
26,822 |
12,512 |
12,557 |
25,069 |
1,753 |
|
Syndication fees |
|
|
0 |
|
446 |
446 |
-446 |
|
Management fees |
538 |
553 |
1,091 |
466 |
451 |
917 |
174 |
|
Total of management activity |
538 |
553 |
1 091 |
466 |
897 |
1 363 |
-272 |
|
Total Freight
railcars |
13,676 |
14,237 |
27,913 |
12,978 |
13,454 |
26,432 |
1,481 |
|
Leasing revenue on owned equipment |
1,878 |
1,886 |
3,764 |
1,619 |
1,789 |
3,408 |
356 |
|
Ancillary services |
2,072 |
1,629 |
3,701 |
1,807 |
2,385 |
4,192 |
-491 |
|
Total leasing activity |
3,950 |
3,515 |
7,465 |
3,426 |
4,174 |
7,600 |
-135 |
|
Sales of owned equipment |
|
5 |
5 |
|
|
0 |
5 |
| Total
sales of equipment |
0 |
5 |
5 |
0 |
0 |
0 |
5 |
|
Total of owned
activity |
3,950 |
3,520 |
7,470 |
3,426 |
4,174 |
7,600 |
-130 |
|
Management fees |
11 |
14 |
25 |
14 |
5 |
19 |
6 |
|
Total of management activity |
11 |
14 |
25 |
14 |
5 |
19 |
6 |
|
Total River Barges |
3,961 |
3,534 |
7,495 |
3,440 |
4,179 |
7,619 |
-124 |
|
Leasing revenue on owned equipment |
4,133 |
4,004 |
8,137 |
3,342 |
3,973 |
7,315 |
822 |
|
Ancillary services |
1,020 |
705 |
1,725 |
2,070 |
1,325 |
3,395 |
-1,670 |
|
Total leasing activity |
5,153 |
4,709 |
9,862 |
5,412 |
5,298 |
10,710 |
-848 |
|
Sales of owned equipment |
10,211 |
10,949 |
21,160 |
13,205 |
12,575 |
25,780 |
-4,620 |
| Total
sales of equipment |
10,211 |
10,949 |
21,160 |
13,205 |
12,575 |
25,780 |
-4,620 |
|
Total of owned
activity |
15,364 |
15,658 |
31,022 |
18,617 |
17,873 |
36,490 |
-5,468 |
|
Syndication fees |
|
544 |
544 |
|
2,076 |
2,076 |
-1,532 |
|
Management fees |
472 |
451 |
923 |
498 |
530 |
1,028 |
-105 |
|
Sales fees |
861 |
1,710 |
2,571 |
336 |
1,349 |
1,685 |
886 |
|
Total of management activity |
1,333 |
2,705 |
4,038 |
834 |
3,955 |
4,789 |
751 |
|
Total Containers |
16,697 |
18,363 |
35,060 |
19,451 |
21,828 |
41,279 |
-6,219 |
|
Leasing revenue on owned equipment |
4 |
5 |
9 |
4 |
5 |
9 |
0 |
|
Ancillary services |
|
|
0 |
-3 |
-3 |
-6 |
6 |
|
Total leasing activity |
4 |
5 |
9 |
1 |
2 |
3 |
6 |
|
Sales of owned equipment |
2,766 |
5,809 |
8,575 |
1,547 |
1,436 |
2,983 |
5,592 |
|
Total sales of equipment |
2,766 |
5,809 |
8,575 |
1,547 |
1,436 |
2,983 |
5,592 |
|
Total of owned
activity |
2,770 |
5,814 |
8,584 |
1,548 |
1,438 |
2,986 |
5,598 |
|
Other capital gains on disposals |
1 |
1 |
2 |
0 |
0 |
0 |
2 |
|
Total Others |
1 |
1 |
2 |
0 |
0 |
0 |
2 |
|
Total Miscellaneous
and eliminations |
2,771 |
5,815 |
8,586 |
1,548 |
1,438 |
2,986 |
5,600 |
|
|
|
|
|
|
|
|
|
|
Total Restated Revenue from activities |
37,105 |
41,949 |
79,054 |
37,417 |
40,899 |
78,316 |
738 |
3 - Breakdown of restated
revenue from activities by
division
1 EBITDA / Restated revenue from activities2 With an EcoVadis
rating of 63/100 at the end of 2022, Touax is in the top 9% of its
industry.
- ENG TOUAX PR - Half-year results 2023
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