Nobina's Q1 2020/2021 results impacted by COVID-19 pandemic.
NORDIC BUSINESS REPORT-June 29, 2020-Nobina's Q1 2020/2021 results impacted by COVID-19 pandemic
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Nobina AB (STO:NOBINA), a large bus transport group in the Nordic region, reported on Friday profit after tax of SEK21m, or EPS of SEK0.24, for the first quarter of 2020/2021, from 1 March 2020 to 31 May 2020.
This was a decline over profit after tax of SEK76m, or EPS of SEK0.87, in Q1 of the prior year.
Net sales for the quarter amounted to SEK2,509m, down by 8.7% as compared with SEK2,749m in Q1 of 2019/2020. Of this decline, 8.1% was organic growth and 0.6% derived from currency effects.
Also, in line with the board of directors proposal, the Annual General Meeting voted not to pay any dividend for the 2019/2020 fiscal year in order to ensure as strong a financial position as possible.
Nobina's first quarter has largely coincided with the accelerating spread of the COVID-19 pandemic worldwide. Bus travel in the Nordic region has halved since the outbreak of COVID-19 and Nobina has been affected within the framework of its incentive contracts where compensation often is linked to the number of boarding passengers.
During the quarter, profitability in incentive contracts was adversely affected by a drop in passenger numbers by about 50% due to COVID-19. According to Nobina, negotiations with some clients, concerning how these contracts can be adapted during the pandemic, are still ongoing while some negotiations have been finalised.
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|Publication:||Nordic Business Report|
|Article Type:||Financial report|
|Date:||Jun 29, 2020|
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