Pkp Cargo (PKP) Q3 2024 earnings summary

Executive summary

• Revenue fell 19.1% year-over-year to PLN 3,371.6m, with net loss of PLN -795.7m and EBITDA down 86.1% to PLN 118.6m.

• PKP CARGO S.A. reported a net loss of PLN 738.7 million for the nine months ended 30 September 2024, compared to a net profit of PLN 85.6 million in the same period last year.

• Freight volume dropped 16.2% year-over-year to 52.2m tons, and freight turnover declined 20.1%.

• The group is undergoing restructuring, including significant layoffs and cost optimization.

• Total comprehensive loss for the period was PLN 770.6 million, a significant deterioration from a positive PLN 62.9 million year-over-year.

Financial highlights

• Operating costs decreased 2.8% year-over-year to PLN 3,755.3m, with notable reductions in energy, fuel, and infrastructure costs.

• Revenues for the nine-month period were PLN 2,577.9 million, down from PLN 3,207.4 million year-over-year.

• EBITDA dropped to PLN 24.2 million from PLN 701.3 million year-over-year.

• EBIT turned negative at PLN -729.9 million, compared to PLN 195.6 million in the prior year.

• Capital expenditure was PLN 532.5m, down 58.5% year-over-year.

Outlook and guidance

• Ongoing restructuring and employment optimization are expected to continue, with further cost reductions anticipated.

• Market conditions remain challenging, with continued pressure on freight volumes and profitability.