Waberer’s generates close to 80%1 of its revenues from the provision of long-haul international transport across Europe. More than two thirds of goods transported across Europe travel by road, where logistics systems have become increasingly sophisticated to meet customers’ demands. Between 2010 and 2015, freight transport by road grew at a Compound Annual Growth Rate of 3%. According to Transport Intelligence, this growth is expected to accelerate going forward. In the EU, freight transport by road has historically outperformed the real GDP Compound Annual Growth Rate for the region by a factor of more than three times. With increasing supply chain complexity and the rapid expansion of e-commerce, this trend is forecast to continue. In addition, the European road transport market in which the Group operates is highly fragmented: the combined market share of the top six companies as measured by revenue was 6.4% in 2015, according to Transport Intelligence. As a result, Waberer’s large scale of operations offers significant competitive advantages and opportunities for further growth.
Within the wider European road freight industry, Central Europe has been a growth area. The relocation of industrial production (e.g. in the automotive sector) to Central Europe has increased trade flows and road traffic between Central and Western Europe. Relatively higher GDP growth rates in Central Europe have also contributed to increased volumes of road freight. Waberer’s home market, Hungary, is strategically located at the heart of Central Europe to be the hub for increasing trade flows, with four European transport corridors passing through the country. The Group is the leader in road transport and logistics services in its domestic market where it generates approximately 17%1 of its total revenues. With growing customer preference for one-stop shop logistics in Hungary, the management expects strong demand for the Group’s services from blue-chip customers going forward.