VR Group Financial Statements Release 1 January to 31 December 2024: Net sales and profitability improved clearly

VR Group Financial Statements Release 1 January to 31 December 2024:  Net sales and profitability improved clearly

VR-Group Plc, Stock Exchange Release, 14 February 2025 at 8:45 a.m. EET

VR Group's net sales and profitability clearly improved in 2024. The growth in net sales and profitability was driven by an increase in travel volumes, an acquisition in Sweden, and new city traffic agreements. Profitability was also improved by determined profit improvement measures, in line with strategy.

October-December 2024 (Q4):

• VR Group net sales increased by 7.2% to EUR 335.6 (313.2) million. Net sales excluding the impact of the 30 May 2024 acquisition in Sweden increased by 3.5% to EUR 324.2 million.
• Comparable operating result (EBIT) was EUR 26.1 (16.7) million or 7.8% (5.3%) of net sales.
• Operating result (EBIT) was EUR 21.6 (21.9) million, or 6.4% (7.0%) of net sales.
• Cash flow from operating activities was EUR 73.2 (60.0) million.
• The number of journeys on long-distance trains in Finland increased by 3.3% to 4.0 (3.9) million journeys.
• Railway transport volumes in freight traffic decreased by -1.4% to 6.1 (6.2) million tonnes.

January-December 2024:

• VR Group net sales increased by 5.8% to EUR 1,294.7 (1,224.1) million. Net sales excluding the impact of the 30 May 2024 acquisition in Sweden increased by 3.6% to EUR 1,268.3 million.
• Comparable operating result (EBIT) was EUR 84.6 (59.9) million, or 6.5% (4.9 %) of net sales.
• Operating result (EBIT) was EUR 76.1 (81.5) million, or 5.9 % (6.7 %) of net sales.
• Cash flow from operating activities was EUR 226.9 (203.8) million.
• Political strikes in Finland had a negative impact of close to EUR 20 million on operating profit.
• The number of journeys on long-distance trains in Finland increased by 1.3% to 15.3 (15.1) million journeys.
• The railway transport volumes of VR Transpoint decreased by -0.8% to 23.2 (23.4) million tonnes.
• VR Group acquired a Swedish long-distance train operator on 30 May 2024. The company now operates under the name VR Snabbtåg Sverige AB.
• The Board of Directors proposes to the Annual General Meeting that capital return of 44.4 million euros, or 20.18 euros per share, be distributed from the company’s distributable equity.
  
  

Key figures	10-12/2024	10-12/2023	1-12/2024	1-12/2023
Net sales, M€	335.6	313.2	1,294.7	1,224.1
Comparable EBITDA, MEUR*	72.7	64.0	271.6	251.0
% of net sales	21.7	20.4	21.0	20.5
Operating result (EBIT), MEUR	21.6	21.9	76.1	81.5
% of net sales	6.4	7.0	5.9	6.7
Comparable operating result (EBIT), MEUR*	26.1	16.7	84.6	59.9
% of net sales	7.8	5.3	6.5	4.9
Net profit/loss for the period, MEUR	13.7	14.9	48.6	52.4
Cash flow from operating activities, MEUR	73.2	60.0	226.9	203.8
Investments, MEUR	59.7	65.8	234.1	186.9
Capital invested at the end of the period, MEUR	1,817.9	1,823.6	1,817.9	1,823.6
Comparable return on capital employed, %	6.4	4.6	5.2	4.0
Comparable return on equity, %	6.2	3.1	4.7	2.5
Net interest-bearing debt at the end of the period, MEUR	443.4	330.8	443.4	330.8
Gearing, %	35.1	26.1	35.1	26.1
Employees on average, FTE	7,539	7,685	7,919	7,747
* VR Group presents comparable EBITDA and operating result (EBIT) as an alternative performance indicators. The aim of comparable performance indicator is to improve comparability between reporting periods.
The figures are unaudited.
The comparative figures in brackets refer to the corresponding time period in the previous year, unless otherwise stated.
VR Group acquired the Swedish rail operator MTR Express (Sweden) AB. The transaction was completed on 30 May 2024 and the company’s name was changed to VR Snabbtåg Sverige AB.

CEO Elisa Markula:

"We continued to successfully execute VR’s strategy during 2024. Our net sales grew by 5.8% and our profitability clearly improved. After a challenging start to the year, we improved our profitability in all VR businesses. The Group’s comparable EBIT increased by more than 40% to EUR 84.6 (59.9) million. The political strikes at the start of the year had a negative impact of nearly EUR 20 million on operating profit.

In domestic long-distance traffic, VR passengers made a record 15.3 million train journeys. Leisure travel and weekday business travel especially grew in popularity. This increase in rail travel and the consumption of ancillary services had a positive impact on the full-year result. The difficult winter conditions and significant track damage at the beginning of the year, as well as exceptionally extensive track work during the summer season, affected not only our result but also our customer satisfaction. Measured by the Net Promoter Score (NPS), our full year customer satisfaction was 46 (49), although NPS improved to 52 (46) in the fourth quarter. The customer experience is at the core of everything we do. Interactions with train conductors, the ease of buying tickets, and the new, five-fold faster onboard Wi-Fi have received special praise from our customers.

In May, we expanded our operations to include market-based long-distance traffic in Sweden. The first green VR Snabbtåg train started operating between Stockholm and Gothenburg in August. Our green brand identity is now visible in the Swedish market through ticket sales channels and in marketing activities. On the Stockholm-Gothenburg route operated by VR Snabbtåg, the number of journeys and customer satisfaction were both at an excellent level.

Increasing the efficiency of city traffic operations in both Finland and Sweden improved the profitability of VR City Traffic, but the result remained still negative due to the current low profitability of the old long-term agreements. VR participates in regional tenders for the Swedish contracted traffic market, of which a record number will be ongoing in 2024–2025. As a result, there are changes in our contract base. In 2024, we achieved three significant contract wins: the rail traffic contracts for Norrtåg and Öresundståg, and the bus contract in the Tyresö area of Stockholm.

Our freight traffic performed well despite the volatile operating environment. The political strikes in Finland at the beginning of 2024 had a significant negative impact on volumes, while industrial cycles caused sudden fluctuations in demand during the year. We transported a total of 23.2 million tonnes of freight by rail, which is approximately 1% less than in the previous year. Our implemented cost adjustment measures improved profitability. Going forward, we will focus on rail freight transport as we divested our road logistics business at the turn of the year.

We are increasingly focusing on our core business in passenger traffic and rail logistics services. In order to create a competition-neutral environment, VR will divest its station and depot properties as well as the rail infrastructure remaining in the company’s ownership. We actively promote the establishment of a publicly supported outsourced rolling-stock company. The intention is to transfer the current purchased rolling stock to a state-owned rolling stock company. VR has also promoted market-based competition by selling surplus rolling stock to other operators in the sector.

In line with our strategy, we will continue to improve profitability, create growth and develop a value-based culture. We aim for EUR 250 million in profit improvement measures by the end of 2027, which we believe will our future competitiveness and our ability to finance upcoming rolling-stock investments of almost EUR 1 billion.

Developing a value-based culture is an important part of implementing our strategy. In 2024, we integrated our common values into everyday working life. According to the results of our employee survey, 88% of VR’s employees are familiar with our new values.

I would like to thank all our employees for their commitment and for the important and valuable work we do together for our customers every day. I also warmly thank our customers for their trust in our services.”

Outlook for 2025

VR estimates that the Group’s net sales for 2025 will decrease slightly compared to the previous year, due to the divestment of the road logistics business and the terminated purchase service agreements in Sweden. The new contracted traffic agreements won in Sweden will not come into effect until the end of 2025.

The Group’s comparable operating result is expected to improve compared to 2024. However, this outlook is subject to uncertainties in the business environment, regarding both general economic developments and labour market conditions.

Annual and Sustainability Report 2024

The Annual Report 2024, including the Report of the Board of Directors and Financial Statements, will be published during week 13 in 2025. It also includes the 2024 Sustainability Report in accordance with the CSRD, the Remuneration Policy and Report, and the Corporate Governance Statement.

VR-Group Plc

Board of Directors