Slowdown and High Costs Impact Frode Laursen's 2023 Results 

Frode Laursen maintains its green momentum but must acknowledge that lower customer activity and significant cost pressures have resulted in a smaller profit than expected in 2023.

In 2023, Frode Laursen A/S delivered a profit of DKK 20.6 million after tax, based on a turnover of DKK 2,154 million. Equity amounts to DKK 224 million, and the solvency ratio is 28.8%.

The declining activity level resulted in capacity adjustments at the beginning of 2023, and the turnover of DKK 2,154 million is, therefore, at the lower end of expectations.

Simultaneously, increased costs have not been fully compensated in the market, negatively affecting the results. The profit of DKK 20.6 million is therefore considered unsatisfactory by the management.

“2023 has been a challenging year. However, I am satisfied that we reacted quickly at the beginning of the year, making it possible for us, with the help of skilled and loyal employees, to adjust capacity quickly,” says Jesper Bejstrup, CFO.

22% Lower CO2 Emissions Since 2020

At the same time, there is also satisfaction that Frode Laursen, like in previous years, has continued its green journey and reduced CO2 consumption per handled pallet.

Frode Laursen has a declared goal of reducing its CO2 emissions by 35% from 2020 to 2030. From 2020 to 2022, the company succeeded in reducing emissions by a complete 22%. The positive development is mainly due to an increased share of driving on sustainable fuels.

Frode Laursen experienced lower freight volumes in 2023, so they chose to reduce diesel vehicles and maintain activity on vehicles running on sustainable fuels.

This meant the share of sustainable fuel consumption in total increased from 18% to 26%.

“We are proud to contribute with such concrete results but want to do more. Therefore, we have joined the Science Based Targets initiative in 2024 and will soon work on setting goals that bring us to Net-Zero by 2050,”says Jesper Bejstrup.

Expectations for 2024

Frode Laursen aims to strengthen its position as a strong logistics partner in the business areas of warehouse logistics and national and international traffic within the segments of FMCG, building materials, and recycling in Northern Europe.

Frode Laursen’s management expects a continued weak activity level. Still, it anticipates that the company’s position within the primary customer segments will be strengthened and that demand from new customers will offset the effect of declining demand.

Jesper Bejstrup, CFO Frode Laursen