(Boursier.com) — Products restated from the Group’s activities Touax (at 79.1 million euros, or +0.9%) and consolidated EBITDA (at 28.9 million euros, or -1.9%) are generally stable compared to the end of June 2022. This performance was obtained in a widely anticipated context of normalization of the Container activity after exceptionally favorable financial years 2021 and 2022 for the entire industry.
Net profit, Group share, amounts to 5.1 million euros at June 30, 2023, compared to 7.6 million euros at the end of June 2022 and 7.5 million euros for the full year in 2022. This profit includes net exceptional income of 2.6 million euros (exceptional income of 3.5 million euros on the buyout of the minority stake in the Modular Constructions activity; exceptional provision of 0.9 million euros due to a dispute ).
Touax SCA improved its debt profile by extending the maturity of its financing:
Repayment in June of the Euro-PP loan of 15.0 million euros maturing in July 2023 in cash for 10.0 million euros and for the balance by carrying out an issue of 5.0 million euros on the stump Sustainable-linked Euro-PP of 2022 maturing in June 2027;
Refinancing in July of the disintermediated loan of 40.0 million euros from a debt fund maturing in June 2024 by a bank loan of the same amount maturing in May 2027, in the form of a club deal with a syndicate of five banks.
These operations follow the full repayment of the TSSDI hybrid capital on August 1, 2022, which had already made it possible to simplify the financing structure and optimize the cost of long-term resources in a context of rising interest rates in the Euro zone.
Over the first half of the 2023 financial year, restated income from activities amounted to 79.1 million euros (78.9 million euros at constant scope and currencies), a slight increase of 0.9% compared to compared to the same period of 2022 (+0.7% at constant currency and scope).
Property activity totaled 73.9 million euros as of June 30, 2023, an increase of 1.8 million euros compared to the end of June 2022. It benefited from the favorable evolution of rental turnover ( +0.9 million euros). The utilization rates of Freight Wagons (89%), River Barges (100%) and Containers (95%) showed high levels as of June 30, 2023. Sales of directly owned equipment also increased by 0.8 million euros.
Management activity fell by 1.0 million euros over the half-year due to the reduction in syndication commissions of 2 million euros. Commissions for the sale of equipment held by investors nevertheless increased by 0.9 million euros and are explained by the higher level of used containers available for sale in 2023 in a market which is normalizing.
ANALYSIS OF CONTRIBUTION BY DIVISION
The restated revenues of the Freight Wagons division amounted to 27.9 million euros as of June 30, 2023, increasing by 1.5 million euros.
This development is attributable to the increase of 1.9 million euros in rental activity (+7.7%). The average utilization rate of the owned wagon fleet is 88.5% in the first half of 2023, compared to 87% in the first half of 2022. The absence of syndication to investors in the first part of the financial year explains to her the reduction of 0.3 million euros in management activity.
The restated revenues of the River Barges division were down slightly by 0.1 million euros at the end of June 2023. Rental revenues increased by 0.4 million euros, benefiting from a fleet utilization rate at 100% over the entire semester and the latest investments made. Ancillary services decreased by 0.5 million euros: charter activity in the Rhine basin was very dynamic over the same period of 2022.
The restated revenues of the Containers division amounted to 35.1 million euros at the end of June 2023, down 6.2 million euros in a 2023 context of normalization throughout the profession after exceptional years 2021 and 2022 .
Rental income nevertheless increased by 11.2% over the half-year (+0.8 million euros). Owned activity is slowed down by less dynamism in the new container trading market, leading to a drop in sales of owned equipment of 4.6 million euros and lower ancillary services (handling costs). of 1.7 million euros.
With fewer transactions completed, syndication fees also decreased by 1.5 million euros. However, given the higher volume of used containers available for sale, commissions received on sales of equipment held by investors increased by €0.9 million.
Finally, revenues from the Modular Constructions activity presented in the “miscellaneous” line increased very significantly and amounted to 8.6 million euros (+5.6 million euros over the half-year). Touax produces and delivers numerous orders recorded at the start of the year, after a low point observed in 2022 at the end of the pandemic.
RECURRING PROFITABILITY
Half-year EBITDA fell slightly by 0.6 million euros (-1.9%), to 28.9 million euros.
The EBITDA of the Freight Wagons division amounted to 14.9 million euros, a slight decrease of 0.3 million euros, following the increase of 1.6 million euros in operational expenses relating to the cycle of maintenance and repair costs.
The River Barges division recorded an EBITDA of 2.5 million euros which increased by 0.4 million euros (+19%), explained by the reduction in charter costs while the rental turnover performed well over the semester.
The EBITDA of the Containers division decreased by 3.7 million euros, showing 8.8 million euros as of June 30, 2023 due to lower half-year revenue (74% of the decrease of 6.2 million euros is attributable to the normalization of container sales prices). On the other hand, the costs of equipment sales improved by 2.7 million euros.
The Modular Constructions activity, on the other hand, saw its EBITDA increase by 3.3 million euros, well above its break-even point thanks to the significant increase in equipment deliveries.
The Group’s depreciation and provision allocations increase by 1.3 million euros, due to the gradual increase in investments made over the past three years on Touax’s balance sheet. Current Operating Income thus stands at 14.7 million euros, a decrease of 1.8 million euros compared to the end of June 2022.
Touax records exceptional net income of 2.6 million euros in the first half of 2023 linked on the one hand to accounting income (non-cash) of 3.5 million euros relating to the repurchase in January of minority shares in the Modular Constructions activity in Africa, and on the other hand to a provision of 1.0 million dollars following the conviction in the United States for a former dispute of the former subsidiary of Modular Constructions in this country.
The Financial Result is -9.8 million euros compared to -6.8 million euros at the end of June 2022. The increase of 3.0 million euros in the net financial expense is mainly due to a full effect in 2023 from the rise in interest rates which accelerated from the end of the first quarter of 2022, and which impacted the Freight Wagons and Containers divisions.
Net income, Group share, amounts to 5.1 million euros (compared to 7.6 million euros as of June 30, 2022), representing 6.4% of restated revenue from activities.
A BALANCED FINANCIAL STRUCTURE
The good balance of Touax’s balance sheet is materialized by the “Loan to Value” ratio down to 57.4% as of June 30 of the financial year (compared to 59.5% as of December 31, 2022 and 56.0% as of June 30 2022). The balance of the financial structure is reinforced by the recent debt refinancing carried out by the parent company Touax SCA, offering more peace of mind on the debt profile until mid-2027.
The shareholders’ equity of the whole is stable, at 153.5 million euros, compared to 153.7 million euros at the end of December 2022. The allocation of the half-year profit is in fact offset by distributions (2022 dividend and payment to general partners) for a total amount of 1.5 million euros, by a negative variation in reserves of 1.5 million euros mainly due to translation differences, and by a decrease of 2.3 million euros of minority interests in the freight wagons activity.
Consolidated cash flow decreased by 10.8 million euros compared to the end of December with the use in June of 10.0 million euros to repay part of the Euro-PP bond debt. The level of cash on the balance sheet as of June 30, 2023 remains comfortable, at 45.2 million euros, and includes a temporary working capital surplus of 11 million euros on the Container management activity.
OUTLOOK
The Touax group confirms its strategy of recurring investments in quality assets rented over a long period while remaining cautious in the face of market conditions.
Touax’s activities should continue to benefit from awareness of the need to decarbonize the economy and transport and the need to renew infrastructure.
Touax, which benefits from a unique position in sustainable transport, is increasingly committed to respecting the environment and good practices in terms of social rules and governance. Touax’s extra-financial ESG rating (conducted by EcoVadis) is among the best in its industry2, and the Group capitalizes on this asset by working on a continuous improvement plan.
Touax’s objective is to always better serve its customers with services linked to sustainable transport. Our different 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.
“Touax confirms the solidity of its business model in a slowing economic environment. Timely investments in quality logistics assets leased over the long term and the diversity of the different segments in which we operate increase the recurrence of revenue. Via two operations refinancing, we have also extended the maturity of Touax SCA’s debt until mid-2027, allowing us to develop our investment strategy in the service of sustainable transport” indicated Fabrice and Raphaël Walewski, managers of Touax SCA.
NEXT APPOINTMENTS:
September 13, 2023: Video conference presentation of half-year results in French;
September 14, 2023: Video conference presentation of half-year results in English;
November 14, 2023: Revenue from activities for the 3rd quarter of 2023.