International freight forwarding and logistics company Panalpina recorded a sound first half-year 2018 with sustained margins and double-digit profitability growth across the board.
From January to June 2018, Panalpina increased EBIT from CHF 42.0 million (USD 42.17 million) to CHF 54.7 million and consolidated profit from CHF 29.9 million to CHF 36.1 million.
Panalpina’s Air Freight volumes increased 3.0 per cent in the first half of 2018. Compared to the same period of last year, gross profit per tonne increased 16 per cent to CHF 725 (YTD 2017: CHF 623), while gross profit increased to CHF 354.7 million (YTD 2017: CHF 294.6 million).
EBIT in Air Freight increased from CHF 39.1 million to CHF 53.4 million. The EBIT-to-gross-profit margin came in at 15.1 per cent compared to 13.3 per cent a year before.
In Logistics, gross profit increased 3.0 per cent to CHF 168.8 million year-on-year (YTD 2017: CHF 163.9 million). EBIT reached CHF 6.8 million for the first six months of 2018, compared to CHF 5.4 million for the same period of last year.
“Half way through 2018 we can say that Panalpina is on track. Ocean Freight broke even again in the second quarter as a result of strict cost control and recovering volumes from April to June. Sustained margins in both Air and Ocean Freight and the reliable performance in Logistics led to sound half-year results,” says Panalpina CEO Stefan Karlen.
“We are pleased with the progress we made, especially when considering that we are working diligently on major transformation projects while focusing on accelerated growth at the same time.”
In the first six months of 2018, Panalpina’s gross profit increased 11 per cent to CHF 744.4 million (YTD 2017: CHF 673.1 million), while total operating expenses stayed flat at CHF 607.1 million (YTD 2017: CHF 609.9 million).
EBIT and consolidated profit increased year-on-year by 30 and 21 per cent respectively. EBIT reached CHF 54.7 million compared to CHF 42.0 million a year before and the EBIT-to-gross-profit margin stood at 7.3 per cent, up from 6.2 per cent in 2017.
The consolidated profit reached CHF 36.1 million, up from CHF 29.9 million in 2017.
“For the second half-year we expect accelerated volume growth for our Air and Ocean Freight activities. 2017 was a record air freight year though, so the comparison will be tough, and uncertainties in international relationships will increase volatility in the air and ocean freight markets and possibly change trade patterns,” says Karlen.
“Regardless of the market environment, we are determined to stay focused on executing our strategy as we continue to build a robust and efficient organization that can deliver sustainable, profitable growth.”