Panalpina outperformed the market in Air and Ocean Freight
Panalpina’s management sees still a lot of room for profitability improvements in Logistics and Ocean Freight
International freight forwarding and logistics company Panalpina made visible progress in 2013. The group reported an EBIT of CHF 48 million – or CHF 108 million when adjusted for non-recurring items, which is more than double the 2012 result. Panalpina outperformed the market in Air and Ocean Freight. Net forwarding revenue increased 2 per cent to CHF 6,76 billion; gross profit increased 7 per cent to CHF 1,56 billion.
In a market that expanded by approximately 1 per cent in 2013, Panalpina’s Air Freight volume grew 3 per cent. Panalpina transported 825,100 tonnes of air cargo last year (2012: 801,400 tonnes).
Panalpina’s Ocean Freight volumes grew 8 per cent year-on-year, while the market grew an estimated 3 per cent. The company transported 1,495,300 TEU in 2013. Gross profit per TEU of Ocean Freight remained nearly stable.
The group’s Logistics product recorded strong gross profit growth of 16 per cent to CHF 437.7 million in 2013 (2012: CHF 377.1 million). Panalpina expanded its warehousing and distribution activities including Value-Added Services (VAS), particularly for the technology and fashion industries. Logistics ended the year with an EBIT loss of CHF 39.3 million (2012: loss of CHF 39.4 million), caused primarily by a number of loss-making facilities and unprofitable road activities.
“We recovered from 2012 and gained market share in a low growth environment in 2013,” says Panalpina CEO Peter Ulber, who has been at the helm of the company since June. “I am happy to state that we outperformed the market in both Air and Ocean Freight. But there is still a lot of room for profitability improvements, especially in Logistics and Ocean Freight.”
Panalpina Group: Results for the Full Year 2013 and the fourth quarter:
Net forwarding revenue
Adjusted consolidated profit