Scandlines Raises Profitability, Competitiveness in 2014

 

Scandlines reports good financial results in 2014 as the company strengthened its competitive position through significant investments in new ferries as well as the completion of a number of important strategic objectives concerning customer service and environmental initiatives. Scandlines expects continued revenue and income growth in 2015.
 
Scandlines recorded moderate revenue growth of 1 percent to EUR 509 million in 2014 (2013: EUR 505 million) based in particular on progress in the Germany-Denmark corridor and positive developments in catering and retail. Ferry services experienced positive growth with a significant 5.5 percent increase in freight unit volume to 0.7 million, a 0.4 percent increase in the number of passengers transported to 11.1 million and a small 0.5 percent decrease in the number of cars transported to 2.5 million.
 
The result from ordinary activities (recurring EBITDA) increased by 4 percent to EUR 179 million (2013: EUR 172 million), corresponding to a recurring EBITDA margin of 35 percent (2013: 34 percent). This progress is mainly attributable to freight volume growth, operational improvements and efficiency initiatives. The result for the year increased by 25 percent to EUR 74 million (2013: EUR 59 million).
 
“I am pleased with our performance in 2014 as we succeeded in growing our revenue and profit while improving our operations and strengthening our competitiveness. Our ferry services in the important German-Danish corridor showed good results, and we recorded the highest volume of transported freight units ever,” says CEO Søren Poulsgaard Jensen.
 
In 2014, Scandlines accelerated its efforts to future-proof the business, with investments totalling EUR 122 million (2013: EUR 28 million). This significant increase was mainly attributable to Scandlines signing an agreement with Danish shipyard FAYARD for the final completion of two new vessels. The two hybrid ferries are expected to be operational on the Rostock-Gedser route in the second half of 2015, further strengthening the route as an efficient, reliable and competitive corridor through Central Europe.
 
Scandlines has a long-term ambition of providing emission free ferry operations. Consequently, sizeable investments were also made in environmental technologies during the year to comply with the new sulphur regulations, which came into effect on 1 January 2015. All four vessels on the Puttgarden-Rødby route have been retrofitted with batteries – representing the world’s largest ever marine hybrid solution – as well as closed loop scrubbers, which clean the engine exhaust of various pollutants.
 
The new customer-centered loyalty program, SMILE, was launched in June and has seen 90,000 members sign up since then. The program will further strengthen Scandlines’ offering to customers in 2015 and will contribute to product development based on customer needs.
 
“We have built a highly competitive and stable business, and we remain committed to developing our position as a customer-focused high-frequency ferry operator with a strong emphasis on catering services on board as well as retail shopping in our BorderShops. We are confident that our strategy will strengthen Scandlines further in 2015 and beyond,” says CEO Søren Poulsgaard Jensen.
 
The outlook for 2015 is positive, and Scandlines expects overall revenue and net income growth of 3-5 percent based on growth in the Germany-Denmark corridor and strong performance within catering and retail coupled with operational improvements.