Novaturas Group review for 6M 2022: high fuel prices

Novaturas Group has started 2022 with strong business results. Revenues generated during the first half of 2022 exceeded both the results for the same period in 2021 and the pre-pandemic results in 2019. The company generated 92 million euros in revenues during the first half of 2022 and served 128,000 travelers across the country. band. However, the rapid increase in aviation fuel prices had a negative impact on the profitability figures and as a result the EBITDA was negative and reached EUR 750,000.

“In order to manage the impact of rising aviation prices, we applied a fuel insurance strategy during the second quarter of this year, which proved effective – financial derivatives allowed us to generate EUR 103,000 in profit. Nevertheless, we did not provide the full schedule of scheduled flights and the prices of aviation fuel continued to increase significantly in the market”, says Vitalij Rakovski, head of the group ” Novaturas.” The management estimates that for this reason the group of companies suffered a loss of approximately 2.2 million euros (24 euros per traveler on average).

After assessing the consequences of fuel price fluctuations and the highly inconsistent market, the company plans to use derivative financial instruments to increase the share of fuel insured and diversify insurance instruments. The shorter booking period and fuel price fluctuation tax calculated in the package tour suggests that the impact of aviation fuel price on profitability is short-term.

Positive outlook for H2

Despite the increase in fuel prices, people continue to travel actively this year. One of the positive aspects is that customers are again preferring to book their trips earlier: the average time between booking and travel date was one and a half months at the start of the year and has now increased to over two months or more. “At the start of the second half of the year, we served more travelers across the group than in all of last year. The rapid increase in passenger flows has caused air carriers and major airports to face operational challenges. Such circumstances have highlighted the benefits of traveling with a tour operator. Our vast experience, expertise and the high level of professionalism of our employees allow us to maintain our position as industry leader during a difficult period in the global aviation market as well as a strong competitive environment,” said the CEO of the group.

Regardless of the negative first half results, the price of fuel is stabilizing, suggesting that the group will be able to meet key operational and profitability targets in the remaining months of the year, assuming it does not there are no changes in the economic environment.

6M 2022 financial results:

6M 2022 6M 2021 6M 2020
Revenue 91,647 29 114 23,476
Gross profit 5,108 3,547 126
EBITDA -654 1,175 -650
net profit -1,155 929 -1,891

About the group “Novaturas”

AB Group “Novaturas” is the largest tour operator in the Baltic States, offering summer and winter vacation packages to more than 30 destinations worldwide and more than 100 tourist routes. In 2019, the group served more than 293,000 customers.

CFO
Arūnas Žilys
[email protected]
+370 615 88259

  • Group Novaturas FS 6M2022 EN

  • Presentation of the Novaturas Group 6M 2022