Eurowag has a proven track record of delivering double-digit organic growth, despite the economic pressures seen across the CRT industry over the last few years.
W.A.G payment solutions plc ("Eurowag" or the "Group")
Consistent double-digit growth, strong cash generation and significant decrease in net leverage.
W.A.G payment solutions plc ("Eurowag" or the "Group") today announces its preliminary results for the year ended 31 December 2024.
Full year financial and operational highlights
Commenced phased rollout of industry-first integrated platform, Eurowag Office
"Eurowag has had another strong year with double-digit net revenue growth, strong profitability and outperformance in cash generation. This has all been possible against a challenging macroeconomic backdrop, which makes me even more proud of what the teams have achieved.
Looking forward, I remain confident in the future growth prospects for the business and delivering our FY 2025 guidance. The continued rollout of our new integrated platform will not only bring many benefits for our valued customers, but it will also accelerate our ability to cross-sell products and unlock further business efficiencies. This in turn drives our ability to deliver positive returns to our shareholders.”
Looking ahead, we are starting to see some signs of economic recovery in the first quarter with the load spot market and kilometres driven improving in some of our larger markets such as Poland; however the macro outlook across Europe remains uncertain. Notwithstanding this we remain confident in our business model, our ability to cross-sell and the delivery of the integrated platform, all of which underpin the Group’s confidence in delivering its FY 2025 guidance and continued strong cash generation.
Chief Executive Officer’s review
After another pivotal year at Eurowag, I am proud of how much progress the business has made in delivering the market’s first end-to-end digital platform for the CRT industry.
We are in the key stages of transforming our business from what was a fuel card company only a few years ago to a data-centric and AI driven company, changing Europe’s CRT industry for good and supporting it to become clean, fair and efficient. The European road transport industry supports 75% of the physical goods economy1; it represents 5% of GDP2 and provides employment to 20 million people3. Despite the scale and importance of this industry, trucking companies face many challenges today, and only a few companies are able to resolve them. At Eurowag, we focus on nothing else but tackling these challenges at their root cause and are fully committed to supporting the transformation of this industry to net zero by 2050. Our vision is about the total digitisation of the industry, which will help support the fragmented ecosystem, decarbonisation and low profitability, and create a better workforce environment
Building an integrated platform
As we built and acquired different product capabilities over the last few years, it became even more apparent that our customers are in need of a digital solution allowing them to streamline workflows via one click solutions, from order to cash. Today, planning a job to completion is delivered through manual processes and 10 or more systems that do not connect to each other. Even before the Eurowag Office official launch in September 2024 at the IAA Expo in Hanover, we started to populate the platform with our original products, such as fleet management and transport management solutions, including navigation, which was followed by the migration of a small cohort of customers. Using a staged approach, we are significantly reducing the execution risk and are able to get instant customer feedback about the user experience of the platform, which we can update in real time. Customer feedback is key to the success of this platform, and we were pleased to receive very promising feedback at the IAA Expo, as well as from three truck manufacturers which we have partnered with to include our navigation solution within their dashboard infotainment systems. This is the first step for Eurowag to connect directly with a customer when they acquire a new truck, and gives us the opportunity to cross sell Eurowag Office. We are now in discussion with the manufacturers about how we can evolve our co-operation, through expanding our product offering by converting customers into the full Eurowag Office product suite over time, as well as engaging with truck dealerships. This is a new sales channel for us, and one we are very excited about.
Whilst our focus is to continue building and enhancing our integrated platform, we continue to invest in our current products and services in order to retain customers as well as keep growing the business. This year we expanded our energy network to around 15,000 stations, as well as supported our customers’ transition to alternative fuels. Our European Electronic Toll Solution (“EETS”) is another product in which we have invested in this year and we are starting to see the returns, with our net revenues from tolls almost doubling. During the year we expanded our EETS network to Slovakia, taking the total markets with EETS licences to 11, whilst our European coverage for toll services, including national, is 23 countries.
Sustainability
In 2024, we continued to focus on our sustainability action plan and its four pillars: climate action, customer success and wellbeing, community impact and responsible business.
During the year, we have made material progress in defining and building our Decarbonisation as a Service offering, including customer advisory, fleet renewal, green fuel corridors and accessibility to an alternative fuel network and the measurement and reporting of CO2 emissions for customers. This is a growing area of commercial focus for us, as more customers seek a trusted partner to help them navigate the upcoming transformation of the industry and meet the evolving demands of their partners, including compliance with legislation changes.
Eurowag offers the largest network of hydrotreated vegetable oil6 (“HVO”) for heavy-duty vehicles in Europe, and during 2024 it opened up the first HVO corridor in Central Eastern Europe. Our liquefied natural gas7 (“LNG”) network now covers 60% of all LNG stations across Europe, and during the year we became the first CRT-focused eMobility Service Provider (“eMSP”) offering Charging as a Service. We have expanded our HVO and bioLNG refuelling network and saw a 63-fold increase in the HVO volume compared to last year and achieved 20% bioLNG coverage in our LNG network across Europe; our active alternatively fuelled trucks in the portfolio increased to 1,537 in 2024 (780 in 2023).
We have also become an official member of the International Sustainability and Carbon Certification (“ISCC”) programme. This prestigious certification is a key industry standard for carbon certification and is essential for selling alternative fuels.
We continue expanding our community impact programme, while developing four new charity partnerships, running our largest-ever employee-led philanthropy initiative (1,295 employees donated €259,000 to over 275 good causes across 17 countries) and donating emergency relief following local disasters in our communities and markets.
Priorities for the year ahead
Whilst we still see macro headwinds across Europe in 2025, we remain confident that what we are trying to achieve by digitising the CRT industry is unique and creates massive opportunities ahead. This year our focus will be about migrating Eurowag key products onto the platform, with toll, energy payments and eWallet being a priority. The other area of focus is evolving our indirect sales channel with our truck manufacturing partners, creating a digital onboarding experience for new customers, as well as getting commercial terms in place with truck distribution outlets across Europe. Finally, the delivery of the integrated platform and continued investment in strengthening our internal systems and processes underpin the Group’s confidence in delivering meaningful returns to both customers, shareholders and the broader society in the medium term.
Detailed version of the press release is available on this link: https://investors.eurowag.com/application/files/1417/4288/4838/FY_2024_press_release.pdf
Eurowag was founded in 1995 and is a leading technology company and an important partner to Europe’s CRT industry, with a purpose to make it clean, fair and efficient. Eurowag enables trucking companies to successfully transition to a low carbon, digital future by harnessing all mission critical data, insights and payment and financing transactions into a single ecosystem and connects their operations seamless before a journey, on the road and post-delivery. investors.eurowag.com
Eurowag
Carla Bloom
VP Investor Relations and Communications
+44 (0) 789 109 4542
investors@eurowag.com
Sodali & Co
Justin Griffiths, Gilly Lock
IR and international media
+44 (0)20 7100 6451
eurowag@sodali.com
