Swedish rail freight operator Green Cargo has achieved a third quarter operating profit of 18 million Swedish crowns (1,57 million euros). During last year’s Q3, the company made an operating loss of 42 million crowns (3,7 million euros). Whereas it had a slow start to the quarter, the company says that the completion of track works has contributed to a strong end of the period.
“The organic operating profit was -34 million Swedish crowns (3 million euros), which is an improvement in earnings by 64 million Swedish crowns (5,6 million euros) in comparison with the same period last year”, Green Cargo says. “The group’s net sales amounted to 1,012 million crowns (88,4 million euros), an increase of 4 percent”. The company entered into new transport agreements for a total value of 202 million crowns (17,6 million euros), up from 150 million (13,1 million euros) during Q3 of 2023.
Completion of works
“The quarter began somewhat weakly as a result of both a large proportion of track works and reduced transport needs linked to the holiday months and the economy”, Green Cargo explains. However, the transformation programme then began to bear fruit, leading to lower administration costs for the company as well as higher revenues.
“It is of course gratifying that the positive earnings trend continues in the third quarter. We continue to implement our planned measures for strengthened competitiveness with improved service level, increased efficiency and reduced cost base”, commented Henrik Dahlin, the operator’s CEO.
In line with Q2 trend
In the second quarter of 2024, Green Cargo made an organic operating profit of -59 million Swedish crowns (5,1 million euros). It marked an improvement in comparison with the same period of 2023. During that period, the company lost double the amount, at 122 million Swedish crowns. Green Cargo pointed out that it achieved the improvement despite restructuring costs burdening its results.
Contrary to the Q2 results, in the third quarter of 2024, Green Cargo managed to improve its profit after tax. It amounted to 8 million Swedish crowns (700,000 euros), up from negative 44 million (3,8 million euros) a year earlier. In Q2, profit was announced at -16 million Swedish crowns (1,39 million euros). In Q2 2023, it amounted to -8 million Swedish crowns (700 thousand euros). Whereas organic operating profits improved twofold during that quarter, profits after tax showed a similar result in the opposite direction.