Higher H1 profit and revenue for HHLA

Hamburger Hafen und Logistik AG (HHLA) reported a 4.6% rise in revenue for the first half of 2024, reaching €760.3 million. The operating result (EBIT) increased by 16.8%, climbing to €58.9, and boosting the EBIT margin to 7.7%, compared to 6.9% in the previous year. Consolidated profit after tax and minority interests also grew year-on-year, reaching €13.2 million, up from €8.2 million.

“The first half of the year was characterised by a challenging market environment for HHLA. Despite making the necessary adjustments due to supply chain disruptions, HHLA was still able to achieve growth in container handling and transport,”Angela Titzrath, Chief Executive Officer of HHLA, said. “Even if the business forecast remains challenging due to the weak economy, ongoing crises and changes in the market, HHLA is in a strong position thanks to its strategic approach. We are therefore continuing to invest in our European network, the modernisation of our terminals, the qualification of our employees and the development of sustainable logistics solutions.”

Port Logistics subgroup

• Revenue increased from €707.7 million the previous year to €742.5 million
• EBIT increased by 27.5% to €51.7 million, with an EBIT margin rising to 7.0% (up 1.3 percentage points year-on-year).
• Profit after tax and minority interests reached €8.9 million, compared to €2.7 million the previous year, with earnings per share at €0.12 (up from €0.04).

Container Segment:

• Container throughput at HHLA’s terminals rose by 2.2% to 2,940 thousand TEU, up from 2,876 thousand TEU.
• Handling volume at Hamburg terminals increased by 1.7% to 2,811 thousand TEU, compared to 2,763 thousand TEU the previous year.
• Positive trends in overseas traffic were seen, particularly in North, South, and Central America, with significant increases in U.S. cargo volumes and other European seaports.
• Moderate declines were noted in the Far and Middle East regions, while feeder traffic volumes slightly increased to 18.7% of total seaborne handling (up from 18.4%).

International Container Terminals:

• Handling volume rose by 13.5% to 129 thousand TEU, driven by growth at HHLA TK Estonia, offsetting declines at HHLA PLT Italy in Trieste and suspension at Container Terminal Odessa due to the Russian invasion.
• Revenue increased by 7.5% to €378.7 million, due to longer container dwell times at Hamburg terminals, higher storage charges, and positive performance at international terminals.
• EBIT rose by 80% to € 34.4 million mainly due to the improved revenue trend. The operative cost increases in the first six months were offset to a large degree through measures to safeguard earnings. The EBIT margin increased by 3.7 percentage points to 9.1 % (previous year: 5.4 percent).

Intermodal Segment Volumes:

• Container transport increased by 1.8% to 833 thousand TEU in the first half of 2024
• Rail transport rose by 4.0% year-on-year to 719 thousand TEU, driven by growth in the German-speaking region and the acquisition of Roland Spedition GmbH. This offset declines in Adriatic seaport and Polish traffic.
• Revenue grew by 4.7% to €327.7 million, compared to €313.0 million the previous year, due to increased rail traffic and routine price adjustments.
• EBIT decreased by 4.7% to €39.2 million (from €41.1 million), with the EBIT margin falling to 11.9% from 13.1%, impacted by changes in cargo mix, higher union wage rates, and expanded rail operations

HHLA’s Port Logistics subgroup now anticipates a moderate increase in container handling, down from a previously expected significant rise, due to varied economic conditions. However, the acquisition of Roland Spedition GmbH is expected to drive a significant boost in container transport and revenue. The forecast for segment revenue has been revised upward, with a strong increase anticipated in both the Container and Intermodal segments. Operating results (EBIT) are projected to fall between €70 million and €100 million, reflecting improved earnings and asset adjustments.

“The challenging underlying conditions, especially the ongoing war in Ukraine, the crises in the Middle East and the current economic weakness and market changes, are also resulting in a change in the time frame of the group’s medium-term ambitions for 2025, as presented in 2021. In addition to EBIT of approx. € 400 million for the 2025 financial year, the forecast included in particular total capital expenditure of € 1.6 billion for the period from 2021 to 2025,” HHLA said.

“The group continues to target an earnings potential of € 400 million in the medium term. In view of the discrepancy between the planned and actual external conditions, as well as delays to planned asset additions, however, this EBIT potential is now not expected to be achieved before the 2027 financial year.”