Novaturas announces audited results, priorities for this year include improving customer experience and transforming the organisation
April 30 2024 - 10:49AM
Novaturas announces audited results, priorities for this year
include improving customer experience and transforming the
organisation
Novaturas, the largest tour operator in the
Baltic States, has published its audited performance report for
2023 and adjusted financial results. Novaturas Group generated
revenues of EUR 208,3 mln. in the Baltic States last year, which is
an increase of 6%, compared to 2022. Its EBITDA (earnings before
interest, taxes, depreciation and amortisation) reached EUR 5.5
mln. last year, which means that the loss of EUR 0.7 mln. recorded
the year before has been replaced by an annual profit of EUR 3.6
mln.
By comparison, according to unaudited data, in
February this year, the company announced revenues of EUR 209 mln.,
EBITDA of EUR 5.5 mln. and profit of EUR 3.7 mln. for 2023.
Last year, Novaturas served a total of 259
thsnd. customers across the Baltic States. This is a slight
decrease (3%), compared to 2022.
Aiming to improve the traveller
experience
“We view 2023 as a successful year for Novaturas
Group, since we have returned on our road to profitable growth. The
annual profit was achieved despite a more challenging fourth
quarter due to complex reasons. Firstly, the military conflict in
the Middle East, which has changed traveller behaviour. As a
result, we have optimised our travel programme to Egypt, which is
one of the main destinations in the Baltic region during the winter
season. Out of concern for the safety of travellers, we have also
cancelled planned trips to Jordan. We are also observing a marked
increase in market dynamics and competitive environment.
Nevertheless, we are looking forward to an active summer season,
which we were first to announce on the market, and our goal this
year is to continue to operate in a sustainable profitable way,”
says Kristijonas Kaikaris, CEO of Novaturas Group.
According to him, the broadest offering of
travel destinations in the region of the company and its prompt
management in response to customer needs were decisive factors in
maintaining profitability. Mr. Kaikaris emphasises that Novaturas
will continue to improve traveller experience and offer new
services.
“The aforementioned market dynamics can drive
the conditions in the Baltic outbound tourism market, and this has
been partly felt in the first quarter of the year. However, it is a
decisive and timely response to the dynamic market situation and
flexibility that have helped to navigate the diverse circumstances
so far. In addition, our wide offering gives us the opportunity to
diversify and focus on the destinations with the highest potential.
We will focus on even more user-friendly tools for travel agencies
and other partners. And we also have plans to develop the digital
experience and other solutions to improve customer experience,”
says Mr Kaikaris.
Proposing not to pay
dividends
When announcing its audited annual report,
Novaturas Group has submitted a proposal to withhold dividends for
2023. According to the management of the company, the main reason
for this is the current credit terms with the bank. These stipulate
that the bank consent is required for the payment of dividends.
Despite a profitable year, the bank lending to Novaturas is
currently reluctant to approve the payment of dividends, given the
current situation in the outbound tourism market and the more
difficult last two quarters.
Gediminas Almantas, Chairman of the Board of
Novaturas Group, says that the company is continuing negotiations
with the bank on the amendment of the credit terms and the payment
of dividends. “The aim is to base the terms primarily on the
structure of the company’s balance sheet and to enable Novaturas to
pay dividends to shareholders in the future, in line with the
dividend policy of the company. If new terms are agreed, the
payment of dividends and more specific time periods will also be
reconsidered,” comments Gediminas Almantas.
At the same time, the management of Novaturas
emphasizes that when distributing company’s profit, consideration
should be given to increase its financial capacity, ensuring the
balance of working capital funds, and investing in
organizational transformation processes, including the improvement
of customer experience, strategic partnerships, and the
organizationall structure. Novaturas will focus on projects that
could enhance the competitiveness of the company, its revenue and
profitability, and thus the long-term return to shareholders.
The final decision on the matter of dividends
will be taken by the shareholders at the General Meeting of
Shareholders scheduled for the second half of May.
About the company Novaturas Group is the
largest and the only charter flights‘ local tour operator in the
Baltic States, offering summer and winter trips to more than 30
destinations worldwide and more than 100 tours. Based on audited
data, in 2023 Novaturas Group recorded revenues of EUR 208,3
million and served 259 000 passengers in Lithuania, Latvia and
Estonia.
Vygantas Reifonas CFO of AB Novaturas +370 687
21603