Scandlines 2019: Solid Results Despite Traffic Decline
Scandlines says its operational efficiency was strong, and the group’s two ferry routes completed more than 41,500 departures and transported 7.2 million passengers.
Soft economic indicators in Sweden and Germany resulted in a slight drop in traffic volume.
In the meanwhile, the company continued to build a more competitive business through investing in green initiatives and further strengthening the group’s financing.
Revenue from the two ferry routes was unchanged at EUR 352 million despite a moderate decline across traffic segments following years of growth in the freight business in particular. BorderShop revenue saw a minor decline to EUR 124 million (2018: EUR 125 million) as leisure travel declined slightly and fewer Swedes visited the group’s BorderShops due to the weak Swedish currency.
Group profitability remained steady in 2019 as Scandlines generated profit from ordinary activities (recurring EBITDA) of EUR 188 million (2018: EUR 191 million) corresponding to an unchanged recurring EBITDA margin of 40 percent. The solid profitability level was secured mainly by means of cost control measures compensating for the lower traffic volumes during the year.
Scandlines continues to see potential for improvement in the coming years as efforts continue to optimise and develop the business.