BALtrans Achieves Record Breaking Revenue Five Years in a Row Reaching HK$4.63 Billion
Expansion of Global Network Continues During the financial year, the Group achieved record annual revenue of over HK$4.63 billion, 14% higher than the previous year. Benefited from new businesses in the Europe, Middle East and Africa (“EMEA”) region, enhanced buying power with increased business volume and intra-network co-operation, gross profit jumped 32% to HK$873.7 million, and gross margin improved from 16.3% to 18.9%. Owing to the soft eastbound transpacific airfreight market, decrease in other net gains, increased costs of strengthened Group and regional management, start-up losses of new Atlanta and French offices, global branding consulting fee expenses and the non-recurring expenses related to ex-Chief Executive and the buy-out/restructuring of the PRC entities, EBITA reduced slightly from HK$140.9 million to HK$137.1 million. Net profit attributable to shareholders dropped to HK$62.5 million, impacted by an increase in intangible assets amortization, rise in net finance costs to finance recent acquisitions, and a higher effective tax rate as the Group expanded further overseas. Mr. Anthony Lau, Executive Chairman of BALtrans, said, “I am pleased to report the fifth record-breaking year in a row for our revenue. The encouraging growth was brought forth by green-field set-ups, acquisitions and organic growth in the EMEA region. Although our profit was temporarily impacted by our businesses and management restructuring, the initiatives are set to maximize our shareholder value in the long run.” Markets The EMEA region recorded revenue of HK$1,798 million, an year on year increment of 173%, attributable to the full year inclusion of new subsidiaries in Germany, South Africa, Sweden and the turnover growth in the Netherlands and the United Kingdom. EMEA region revenue accounted for 36% of the total revenue after intra-group sales eliminations. EBITA increased from HK$16 million last year to HK$50 million this year, notwithstanding a start-up EBITA loss of HK$1.3 million recorded in France. The North America region’s revenue decreased by 6% to HK$675 million due to the loss of a major customer and a short-term phenomenon of substituting certain airfreight cargo movement with seafreight transportation during the period under review. EBITA was HK$12 million, 40% lower than last year, caused mainly by aforesaid reasons plus the start-up losses of the new Atlanta office and the increased staff incentive costs in Canada. Services Exhibition forwarding and household removal’s revenue rose 42% to HK$184 million, caused mainly by the timing of key exhibition events of our client base and the handling of more events. EBITA increased from HK$14.9 million last year to HK$16.7 million this year. Third-party logistics’ revenue increased by 31% to HK$236 million, resulted from an increase in third-party logistics business in the Netherlands and South Africa. EBITA grew 22% from HK$9.9 million to HK$12.1 million. Looking Ahead Mr. Hooi-chong Ng, Executive Director of BALtrans said, “We are undergoing a significant transition to become a global player with stronger focus on self-operated network. Our long term objective is to set up an end-to-end BALtrans platform, both at origin and destination, to provide improved services to our customers globally. New subsidiaries will cushion the Group in the gradual transition from agency business to having more businesses contributed from our own network offices.” The growth momentum in the EMEA region continues. The Group keeps on looking out for expansion opportunities in key new markets in Europe. New offices have been opened in France, Qatar and Egypt. With strong local teams, the EMEA region has contributed higher quality direct accounts business to the Group, and the France offices have turned around shortly after inception. The strengthened sales capability in USA has won several key accounts that will make meaningful contribution to the entire network as well as new origin locations such as Pakistan, Bangladesh and Cambodia. The Group is currently studying the feasibility of setting up new joint venture offices to handle new businesses in these emerging countries. Minority buy-out and integration of the PRC platform, and reducing low margin pre¬paid and co-loading business, have provided the Group with an efficient and fully controlled platform to expand the PRC business with the rest of the Group network. Mr. Lau concluded, “We will continue our efforts in expanding our global network coverage. We will strive to enhance cooperation within our self-operated network, and invest further to improve our processes and systems, with an ultimate goal to improve our productivity and profit margin.” About BALtrans Logistics BALtrans Logistics’ range of services includes air freight forwarding, ocean freight forwarding, sea-air services, exhibition forwarding, international and domestic removal, contract logistics, warehousing & distribution, ship spares logistics and insurance brokerage. The Group’s commitment to efficient and reliable services to the global shipping public won for it the ISO 9002 and ISO9000:2001 Quality Management Certification in 1994 and 2003 respectively, the Hong Kong Trade Development Council Services Award – Export Marketing in For enquiries, please contact: |
