News / Clasquin sees margins squeezed in H1 as MSC takeover awaits clearance

French freight forwarder Clasquin, currently the subject of a takeover offer by the world’s largest shipping line, MSC, this week reported 9.1% year-on-year growth in 2024 first-half revenue, to €310m ($345m).

Gross profit was up 4.7%, to €70.6m, but Ebitda declined 18.9%, to €13.3m, which the group said was due to “an increase in operating expenses linked to investments in the group’s digital tools, which will drive future growth”, as well a decline in results by its Moroccan Timar Group subsidiary.

It said total shipments – comprising both air and ocean – rose 7% in the first half and were driven by a 4% growth in sea freight, which represents 44% of the group’s total business, and a “sharp increase” in air freight shipments to the tune of 12%.

However, both modes saw margins squeezed – a 3.4% contraction in air freight and 10.5% decline in sea freight – but were tempered by a 5.3% growth in its European road brokerage business.

It added that it grew business with its top 30 clients by 21%, while new business wins accounted for 5% of its gross profit growth.

The first half also saw it rebuild its working capital reserves to €25.6m, from €4.8m at the same point last year.

“H1 2024 saw a sharp increase in working capital (up €16m), as a direct result of the rise in freight rates,” it said. “Following market conditions in 2023 that gave rise to an exceptional reduction in working capital, 2024 saw a return to much more normal levels.”

Meanwhile, the potential MSC takeover of Clasquin rumbles on: in March, MSC subsidiary SAS Shipping Agencies Services signed a share purchase agreement to acquire 42.06% of its share capital at €142.03 per share.

The EC competition regulator was notified of the share purchase on 2 September, and clearance is expected on 7 October.

Assuming that is obtained, SAS will begin the process of buying the remaining 57% of shares.

“SAS will file a tender offer with [French securities commission] Autorité des Marchés Financiers (AMF) for the remaining shares in Clasquin’s capital, at the same price, of €142.03 per share.

“This draft offer will be submitted to AMF for approval. SAS intends to proceed with a squeeze-out should applicable conditions be met upon closing of the offer.”