HHLA increases revenue and benefits from European network expansion
After a weak start to the year due to a challenging environment, Hamburger Hafen und Logistik AG (HHLA) concluded the first half of 2024 with positive figures for both revenue and earnings. In addition to rises in container handling and container transport, an advantageous revenue mix and the expansion of the European network also had a beneficial effect. Group revenue rose by 4.6 percent to € 760.3 million (previous year: € 727.1 million). The Group operating result (EBIT) climbed by 16.8 percent to € 58.9 million (previous year: € 50.4 million). The EBIT margin amounted to 7.7 percent (previous year: 6.9 percent). Consolidated profit after tax and minority interests came to € 13.2 million (previous year: € 8.2 million).
Angela Titzrath, Chief Executive Officer of HHLA: “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. 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: performance January – June 2024
The listed Port Logistics subgroup recorded a moderate increase in revenue to € 742.5 million in the first six months (previous year: € 707.7 million). The operating result (EBIT) increased by 27.5 percent to € 51.7 million (previous year: € 40.5 million), while the EBIT margin rose year-on-year by 1.3 percentage points to 7.0 percent. Profit after tax and minority interests came to € 8.9 million (previous year: € 2.7 million). Earnings per share thus amounted to € 0.12 (previous year: € 0.04).
In the Container segment, container throughput at HHLA’s container terminals rose by 2.2 percent compared to the weak prior-year figure to 2,940 thousand standard containers (TEU) in the first half of 2024 (previous year: 2,876 thousand TEU). At 2,811 thousand TEU, handling volume at the Hamburg container terminals was up 1.7 percent on the same period of the previous year (previous year: 2,763 thousand TEU). In terms of overseas traffic, this positive volume trend was primarily due to, on the one hand, the North, South and Central America shipping regions, with cargo volumes in the United States recording a particularly substantial increase. On the other hand, a positive trend was witnessed in the cargo volumes with other European seaports in light of temporary route adjustments due to the military conflict in the Red Sea. Handling volumes in the Far and Middle East shipping regions, however, moderately declined. Feeder traffic volumes were moderately up on the previous year. The proportion of seaborne handling by feeders stood at 18.7 percent (previous year: 18.4 percent).
The international container terminals reported a rise in handling volume of 13.5 percent to 129 thousand TEU (previous year: 113 thousand TEU), driven by the strong growth at the multi-function terminal HHLA TK Estonia. This more than compensated for the reduction in handling volume at HHLA PLT Italy in Trieste due to blank sailings and ships being rerouted as a consequence of the military conflict in the Red Sea. Seaborne handling at Container Terminal Odessa (CTO) remained suspended by the authorities in the first half of the year due to the Russian invasion.
Segment revenue rose significantly by 7.5 percent in the reporting period to € 378.7 million (previous year: € 352.2 million). This was mainly due to longer dwell times for containers handled at the Hamburg container terminals compared to the previous year and the resulting rise in storage charges. In addition, the positive trend at HHLA’s international container terminals contributed to the increase in revenue. Alongside earnings from handling-related activities at CTO, positive volume growth at the HHLA TK Estonia terminal in Tallinn, as well as higher earnings at the multi-function terminal in Trieste, had a positive effect.
The operating result (EBIT) rose by 80.0 percent to € 34.4 million in the reporting period (previous year: € 19.1 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 percent (previous year: 5.4 percent).
The Intermodal segment saw a slight increase in volumes in the first half of 2024. Container transport increased by a total of 1.8 percent to 833 thousand TEU overall (previous year: 819 thousand TEU).
Rail transport rose by 4.0 percent year-on-year to 719 thousand TEU (previous year: 691 thousand TEU). Here, the sharp rise in transport volumes in the German speaking region more than compensated for the decline in traffic with Adriatic seaports and the decline in Polish traffic. The acquisition of a majority shareholding in Roland Spedition GmbH in the second quarter also contributed to the rise. There was a strong decrease of 10.0 percent in road transport to 115 thousand TEU (previous year: 128 thousand TEU).
With year-on-year growth of 4.7 percent to € 327.7 million (previous year: € 313.0 million), revenue growth was stronger than the increase in transport volumes. Alongside routine price adjustments, this was due to the higher share of rail traffic in transport volumes, which was up 1.8 percentage points year-on-year at 86.2 percent (previous year: 84.4 percent).
The operating result (EBIT) decreased by 4.7 percent to € 39.2 million (previous year: € 41.1 million). The EBIT margin fell by 1.2 percentage points to 11.9 percent (previous year: 13.1 percent). In addition to shifts in the cargo mix, increased union wage rates and the expansion of operations in rail transport also had an adverse effect.