FREJA annual statement 2019


People Business, modern technology and a solid platform are still keywords for ambitious FREJA

The transport & logistics group FREJA Transport & Logistics Holding A/S raises the result for 2019. Once again, the subsidiaries in Norway and Finland are the ones to deliver results above market level. Again in 2019 the Swedish subsidiary disappoints, even though the trend for the last six months was on the rise. 2019 was “year two” after the acquisition of Transcargo. The Danish part of Transcargo is 100 % implemented and merged into the Danish FREJA, and the result in the Danish subsidiary meets the expectations for 2019. In 2020 focus is still on the integration and construction of the Polish subsidiary. The trucking part operates as an independent company and FREJA invests in an expansion and upgrade of the fleet into environmental friendly units. The new ultramodern transport HUB on a 75,000 m2 site in Szczecin will be ready in the beginning of June 2020, and the implementation of FREJA’s it-platform has progressed as planned, so FREJA has good reason to believe in continued growth and is optimistic.

The FREJA Group continues stabile development and is profitable in 2019
FREJA Transport & Logistics Holding A/S has a growth in turnover from 2018 to 2019 of 7.1 %. The total turnover in 2019 amounts to DKK 3.34 billion.

EBIT amounts to DKK 73.1 mill in 2019 compared to DKK 51.4 mill in 2018. The result before tax amounts to DKK 53.7 mill in 2019 compared to 38.1 mill in 2018. The result in 2018 was influenced negatively by the integration of Transcargo, and 2019 has been influenced negatively by costs for restructuring of the Swedish subsidiary.

Group equity has increased from DKK 285.5 mill in 2018 to DKK 294.2 mill in 2019. As a consequence of the transition to IFRS 16, the solvency ratio drops from 29.6 % to 18.4 % the end of 2019.

We have seen a stable and good development in Denmark, China, Norway and Finland.

Sweden did not live up to the expectations for 2019, and many efforts have been made, especially in 2HY by our dedicated Swedish organization with support from Group Management. These efforts have resulted in substantial improvements. Q1 2020 has shown a positive trend and budgets have been met, however the Swedish subsidiary still estimates a minor deficit for 2020 and the parent company has added the necessary strengthening of the capital.

The newly acquired subsidiary in Poland has shown an excellent development. In the beginning of 2020 Tomasz Cegielski started as new country manager and the potential for continued growth is significant.

In spite of massive investments in new technologies, transport is still a People Business
For more than 10 years, FREJA has invested massively in the development of our it-platform, and 2019 is no exception. We invest partly to optimize our own business, partly to become more competitive, but also to give our customers advantages in the value chain. The launch of MyFREJA – and particularly the associated, extra services such as consultancy services – have been a success and we continue to develop our it-platform to benefit our customers. It is still our ambition that the product will provide significant, financial advantages to all parties involved and thereby help increase FREJA’s position in the European transport business.

“Our focus is to continue to develop long-term relations with customers as well as suppliers. In spite of our large focus on efficiency improvements, we are also aware that people are still the most important resource in the cooperation – transport is a People Business. The key-words for us in a cooperation are transparency, trust and credibility. We have always managed our business on the basis of strong values. We work on a daily basis to make a difference for our customers and make sure that together we will become a little bit better every day”, says Jørgen Hansen founder of and Chairman of the Board in the FREJA Group.

Readiness, humility and continued ambitions set the agenda in the always ambitious FREJA Group
“A reasonable annual result for 2019, and we are both ready and have the ambition to show that we can do better in future. In 2019 it has been the consolidation and continuous integration of Transcargo which has had our focus. In 2020 it will be especially our new positioning on the Polish market together with the reconstruction of the Swedish market, which will have our largest focus – however it will not influence our development in China, Norway, Finland and Denmark”, says Group CEO Ulrik Rasmussen.

COVID-19
Naturally, COVID-19 has an influence on our everyday life at the moment, and on some markets we have seen a relatively large cutback of activities. However, these are partly compensated for on other markets and segments, where we have seen increased activities.

However, we are convinced that our business model and qualified organization is ready to continue to develop FREJA in a positive direction – also during this extraordinary situation – so FREJA will stand stronger when we have overcome the crisis.

“The development of Q1 2020 shows that we are on the right track. We have a solid platform and we are ready to reap the benefits of the past years’ massive investments. And should there be further consolidation possibilities, we are also ready to take a look at that,” Jørgen Hansen concludes.

For further information please contact Group CEO Ulrik Rasmussen or Chairman of the Board Jørgen Hansen.

Link annual report 2019

Jørgen J. Hansen

Founder & Chairman of the Board
+45 4019 5288
+45 9670 5101
jh@freja.com

Ulrik Rasmussen

Group CEO
+45 5234 5330
+45 9670 5330
ura@freja.com

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