Annual report Consolidated net turnover, result and liquidity
VR Group performed well financially in 2014 despite the challenging economic situation. Even though comparative turnover was lower than in the previous year in all business divisions, higher cost-effectiveness helped to improve the operating result. Logistics and infrastructure engineering posted higher operating profits, while the performance of passenger services was at the same level as in 2013.
The group's turnover in 2014 was EUR 1,367.2 million (EUR 1,421.2 million in 2013), or 3.8 per cent lower than in the previous year. The sale of Coronet Oy on 4 November 2013 affects the comparability of the figures with the year 2013. Comparable turnover declined by 2.3 per cent from 2013.
VR Group posted an operating profit of EUR 90.4 million (EUR 70.6 million) and the net profit for the financial year was EUR 67.6 million (EUR 65.3 million). The net profit for the year includes profit on the sale of assets, which had a net impact of EUR 23.9 million (EUR 19.0 million) on the operating profit. The profit on operations excluding the one-time items improved from 2013 mainly thanks to the efficiency measures.
Turnover in passenger transport fell below last year's level. The turnover for 2014 was EUR 566.3 million (EUR 568.0 million). Turnover declined 0.3 per cent over the year, which includes a 3.4 per cent fall in turnover for train transport, and a 20.1 per cent increase in bus and coach transport. Despite a lower turnover, there was only a small decline in the number of passengers as successful sales campaigns helped to keep train travel popular. Supported by strict cost control and efficiency measures, the operating result of the business division (EUR 32.8 million) was almost at previous year's levels, which can be considered a reasonable achievement in the challenging situation. Success in competitive tendering for local services in the Helsinki region was a major factor in the growth of bus and coach services. A total of 103.9 million journeys were made in 2014, amounting to an increase of 5.6 per cent in comparison with 2013. Number of rail journeys (68.3 million) decreased by 1.5 per cent from 2013, while the number of bus and coach journeys (35.6 million) increased 22.5 per cent in the same period. Turnover of Avecra, the company providing restaurant services on trains and at stations, declined 3.6 per cent, to EUR 32.8 million (EUR 34.0 million).
VR’s logistics carryings consist almost entirely of raw materials and products for the mechanical and chemical wood processing, metal and mechanical engineering and chemical industries. Total transport volumes in 2014 were at previous year's levels, amounting to 42.2 million tonnes (42.0 million tonnes).
Net turnover for logistics totalled EUR 435.3 million or down 1.5 per cent from 2013 (EUR 441.9 million). Turnover in rail logistics grew by 0.8 per cent, but turnover in road services declined by 8.3 per cent over the previous year. Logistics recorded a cost provision of EUR 4.3 million in its 2014 results because of the financial risks at Talvivaara. Punctuality in rail logistics improved in 2014, being 93.2 per cent (target level with a tolerance of 30 minutes was 90 per cent). Turnover of infrastructure engineering declined by 7.7 per cent from 2013, to EUR 314.0 million (EUR 340.3 million). The steepest fall was experienced in the construction business. This was mainly the result of the decrease in government funding for track maintenance in Finland and increased competition, especially in construction contracts.
Despite a lower turnover, infrastructure engineering was able to substantially improve its profitability in 2014. Profitability improved in nearly all business operations. Machinery business operations split off to form a separate business operation in early 2014.
The Group's liquidity remained strong throughout the year. Liquid assets stood at EUR 331.0 million (EUR 265.3 million) at the end of the year. Liquid assets averaged EUR 224.0 million during 2014. VR-Group Ltd did not have any outstanding commercial papers on the closing date.
In 2013 the VR Group paid EUR 30 million in dividends.
The other financial indicators are given in Note 24.
Shareholders' equity
The company has a total of 2,200,000 shares. The company's share capital is EUR 370,013,438.22.
