Frode Laursen A/S posted satisfactory financial results for 2019, and also reported a reduction in CO2 emissions from the company’s haulage activities as well as its warehouse operations.
In 2019, Frode Laursen A/S posted a pre-tax profit of DKK 28 million based on revenue of DKK 2,036 million. The company’s equity totals DKK 188 million, which corresponds to a solvency ratio of 28.4%.
The management expected revenue in 2019 to grow less than in previous years, while focus was to be maintained on earnings. This focus was successfully maintained, and resulted in an increase in pre-tax profit from DKK 10 million in 2018 to DKK 28 million in 2019. This was mainly due to higher productivity and transport quality, as well as improved price quality for contracts or the termination of contracts which were not generating value.
“Huge efforts have been made by our employees in 2019, and this is the main reason why we have achieved our goals,” says Dennis Rytter, CFO.
Increased focus on climate and HR
In 2019, Frode Laursen also focused more on its CSR initiatives. In the course of the year, the company reduced its CO2 emissions from its buildings by approx. 30% compared to 2018, while CO2 emissions from its haulage activities per tonne-km were reduced by approx. 3%.
The UN’s Sustainable Development Goals 13 (Climate action) and 8 (Decent work and economic growth) are Frode Laursen’s two focus areas for its CSR initiatives.
“We decided on these two goals as we feel this is where we can make the biggest difference. The transport sector is responsible for much of the world’s CO2 emissions, and so, as a responsible company, of course we need to take action in this area. At the same time, Frode Laursen has always been characterised by a high degree of inclusiveness and focus on employee well-being. We want to work with this even more, which explains why we have set ‘Decent work and economic growth’ as our second focus area,” says Dennis Rytter.
Outlook for 2020
In 2020, Frode Laursen is continuing to focus on being a strong logistics partner within warehouse logistics as well as Danish and international goods transport within FMCGs, building materials and recycling in the Nordics and Europe.
However, the management expects 2020 to be characterised by some uncertainty regarding the development in revenue and earnings. Not least because of the corona pandemic.
Frode Laursen had a good start to 2020, but as the pandemic is impacting Europe and the Nordic region, both revenue and earnings are expected to suffer. Nevertheless, a number of development initiatives are being implemented, such as increased digitalisation and skills development, which are designed to ensure that Frode Laursen emerges stronger from the pandemic.
Frode Laursen group – facts
The group’s primary business areas are warehouse logistics, and national and international shipping within the segments FMCGs, building materials and recycling in the Nordics and Europe.
In 2019, the group posted total revenue of DKK 2,064 million, and had 1,757 employees, of whom 926 were employed in Denmark.
The group operates more than 700 vehicles on a daily basis (of which approx. 325 are hauliers), and owns 600,000 square metres of covered storage facilities.
The Frode Laursen group includes the two part-owned companies Skanol A/S (including its subsidiaries in Sweden and Norway) and Agri-Norcold A/S. However, both these companies are excluded from the above.