EQS-News: HHLA posts positive growth in revenue and earnings

Hamburg, 14 November 2024

_{Publication of interim statement January to September 2024}

HHLA posts positive growth in revenue and earnings

• HHLA’s CEO, Angela Titzrath: “HHLA is benefiting from its European network expansion, even in challenging conditions.”
• Container handling increased by 0.9 percent to 4,496 thousand TEU (previous year: 4,455 thousand TEU)
• Container transport increased by 8.1 percent to 1,321 thousand TEU (previous year: 1,222 thousand TEU)
• Group revenue rose by 8.5 percent to € 1,182.9 million (previous year: € 1,090.0 million)

The revenue and earnings of Hamburger Hafen und Logistik AG (HHLA) recorded positive growth in the first nine months of 2024. In addition to a significant rise in transport volume, higher storage charges at the Hamburg container terminals owing to temporarily longer container dwell times, as well as the expansion of the European network, all had a beneficial effect. Group revenue rose by 8.5 percent to € 1,182.9 million (previous year: € 1,090.0 million). The Group operating result (EBIT) climbed by 23.2 percent to € 93.2 million (previous year: € 75.6 million). The EBIT margin amounted to 7.9 percent (previous year: 6.9 percent). Consolidated profit after minority interests came to € 23.1 million (previous year: € 11.9 million).

Angela Titzrath, Chief Executive Officer of HHLA: “Global economic development and trade continued to be influenced by various crises and risk factors during the first nine months of 2024. Despite the ongoing challenges, HHLA posted positive growth in revenue and earnings in the first nine months. In particular, the expansion of sustainable and connected logistics solutions throughout Europe had an impact on this, resulting in significant increases in transport volumes in the Intermodal segment for our Metrans and Roland Spedition subsidiaries.”

Port Logistics subgroup: Performance January to September 2024

The listed Port Logistics subgroup recorded a significant increase in revenue to € 1,155.9 million in the first nine months (previous year: € 1,061.3 million). The operating result (EBIT) increased by 31.8 percent to € 81.5 million (previous year: € 61.8 million), while the EBIT margin rose year-on-year by 1.3 percentage points to 7.1 percent. Profit after tax and minority interests came to € 16.3 million (previous year: € 3.1 million). Earnings per share thus amounted to € 0.22 (previous year: € 0.04).

In the Container segment, container handling at HHLA’s container terminals increased compared with the previous year’s performance by 0.9 percent to 4,496 thousand standard containers (TEU) (previous year: 4,455 thousand TEU). With year-on-year growth of 0.2 percent to 4,292 thousand TEU, container throughput at the Hamburg container terminals was on previous year’s level (previous year: 4,286 thousand TEU). Whereas volumes in overseas traffic decreased for the Far East and Middle East shipping regions, there was strong volume growth for the North and South America shipping regions, particularly for the United States. Against the backdrop of temporary route adjustments caused by the military conflict in the Red Sea, there was also a positive trend in cargo volumes with other European seaports. In terms of feeder traffic, there was a particularly strong rise in container throughput from Lithuania and within Germany in addition to a recovery in Swedish and Polish traffic. By contrast, Finnish and Danish cargo volumes declined. The proportion of seaborne handling by feeders stood at 19.0 percent (previous year: 18.4 percent).

The international container terminals reported a marked rise in handling volume of 20.2 percent to 203 thousand TEU (previous year: 169 thousand TEU). This was due to strong volume growth at the multi-function terminal HHLA TK Estonia and the resumption of seaborne handling at Container Terminal Odessa in the third quarter of 2024.

During the first nine months, revenue rose significantly by 8.2 percent to € 578.1 million (previous year: € 534.3 million). This was mainly due to longer dwell times for containers handled at the Hamburg container terminals, which continued to have a positive impact on storage fees. The positive trend at HHLA’s international container terminals also contributed to the increase in revenue. The operating result (EBIT) rose by 87.1 percent to € 51.0 million in the reporting period (previous year: € 27.3 million), mainly due to the improved revenue trend. The EBIT margin increased by 3.7 percentage points to 8.8 percent (previous year: 5.1 percent).

The Intermodal segment recorded a significant increase in volumes during the first nine months of 2024. Container transport increased by a total of 8.1 percent to 1,321 thousand TEU overall (previous year: 1,222 thousand TEU).

Rail traffic increased by 10.2 percent to 1,144 thousand TEU (previous year: 1,037 thousand TEU), with the strong rise in transport volumes in the German-speaking regions more than offsetting the decline in traffic with Adriatic seaports and in Polish traffic. The positive volume trend was also aided by the acquisition of a majority shareholding in Roland Spedition GmbH in the second quarter. There was a moderate decrease in road transport of 4.1 percent to 178 thousand TEU (previous year: 185 thousand TEU).

With year-on-year growth of 12.0 percent to € 521.9 million (previous year: € 465.8 million), revenue growth was stronger than the increase in transport volumes. Alongside routine price adjustments, this was due to rail’s increased share of total transport volumes – up 1.7 percentage points year-on-year at 86.6 percent (previous year: 84.9 percent).

The operating result (EBIT) increased by 2.2 percent to € 62.7 million in the reporting period (previous year: € 61.4 million). The EBIT margin fell by 1.2 percentage points to 12.0 percent (previous year: 13.2 percent). In addition to shifts in the cargo mix and increased union wage rates, there were also adverse effects from costs incurred by strike action at the Hamburg terminals in the third quarter, the impact of wide-scale flooding in Eastern Europe and the expansion of operations in rail transport.

Real Estate subgroup: Performance January to September 2024

In spite of the weak market environment, HHLA’s properties in the Speicherstadt historical warehouse district and the fish market area of Hamburg maintained their stable trend, with occupancy almost full after the first three quarters of 2024.

Revenue fell slightly by 1.9 percent in the reporting period to € 34.3 million (previous year: € 35.0 million). A fall in income from the fish market area following the demolition of cold-storage and warehouse facilities in preparation for a project could not be fully offset by revenue growth in the Speicherstadt historical warehouse district.

The cumulative operating result (EBIT) dropped by 15.4 percent to € 11.4 million in the reporting period (previous year: € 13.5 million). Alongside moderate increases in maintenance costs, the decrease was chiefly due to expenses linked to the successful reletting of space in the Speicherstadt historical warehouse district. Earnings were also burdened by costs for project-related preparatory work ahead of construction in the fish market area.

Outlook for the financial year 2024

Based on the preliminary and unaudited figures for the first nine months of the year, the expectations for the 2024 financial year had already been raised in an ad-hoc announcement on 30 October 2024.

Against this backdrop, a slight year-on-year increase in container throughput is now expected for the Port Logistics subgroup in the 2024 financial year (previously: moderate increase), while a significant increase is still expected for container transport. A strong increase in revenue is now anticipated (previously: significant increase). This is mainly due to increased revenue from rail traffic. In view of the higher income level resulting from temporarily longer container dwell times at the Hamburg terminals, expectations for the operating result (EBIT) have also been raised and are now within a range between € 110 million and € 130 million (previously: € 70 million and € 100 million). Within this range, a strong year-on-year increase is expected for both the Container and the Intermodal segments in their respective segment EBIT results.

For the Real Estate subgroup, revenue and operating result (EBIT) are still expected to remain at the previous year’s level.

Overall, a significant increase in revenue is still forecast at Group level. Against the background of the effects described above, the operating result (EBIT) is now expected to be within a range between € 125 million and € 145 million (previously: € 85 million and € 115 million).

As a result of delays in the implementation of investment projects, primarily in the Real Estate subgroup and Intermodal segment as a result of exogenous factors, capital expenditure at Group level is now expected to be at the lower end of the range between € 325 million and € 375 million (previously: € 400 million and € 450 million). With anticipated investments of € 300 million to € 350 million, the Port Logistics subgroup will account for the majority of this expenditure (previously: € 360 million to € 410 million).

 

Key figures for January to September 2024

HHLA Group
in € million		1–9 | 2024		1–9 | 2023		Change
Revenue		1,182.9		1,090.0		8.5 %
EBITDA		220.5		209.3		5.4 %
EBITDA margin in %		18.6		19.2		- 0.6 pp
EBIT		93.2		75.6		23.2 %
EBIT margin in %		7.9		6.9		1.0 pp
Profit after tax and minority interests		23.1		11.9		94.7 %
ROCE in %		5.0		4.3		0.7 pp

 

Port Logistics subgroup 1,2
in € million		1–9 | 2024		1–9 | 2023		Change
Revenue		1,155.9		1,061.3		8.9 %
EBITDA		202.0		188.6		7.1 %
EBITDA margin in %		17.5		17.8		- 0.3 pp
EBIT		81.5		61.8		31.8 %
EBIT margin in %		7.1		5.8		1.3 pp
Profit after tax and minority interests		16.3		3.1		424.6 %
Earnings per share in € 3		0.22		0.04		424.6 %
1 Before consolidation between subgroups
2 Listed class A shares
3 Basic and diluted

 

Container segment
in € million		1–9 | 2024		1–9 | 2023		Change
Revenue		578.1		534.3		8.2 %
EBITDA		117.6		102.2		15.1 %
EBITDA margin in %		20.3		19.1		1.2 pp
EBIT		51.0		27.3		87.1 %
EBIT margin in %		8.8		5.1		3.7 pp
Container handling in thousand TEU		4,496		4,455		0.9 %

 

Intermodal segment
in € million		1–9 | 2024		1–9 | 2023		Change
Revenue		521.9		465.8		12.0 %
EBITDA		101.0		100.0		1.0 %
EBITDA margin in %		19.4		21.5		- 2.1 pp
EBIT		62.7		61.4		2.2 %
EBIT margin in %		12.0		13.2		- 1.2 pp
Container transport in thousand TEU		1,321		1,222		8.1 %

 

Key figures for July to September 2024

HHLA Group
in € million		7–9 | 2024		7–9 | 2023		Change
Revenue		422.6		362.9		16.5 %
EBITDA		77.5		70.3		10.2 %
EBITDA margin in %		18.3		19.4		- 1.1 pp
EBIT		34.4		25.3		36.1 %
EBIT margin in %		8.1		7.0		1.1 pp
Profit after tax and minority interests		9.9		3.7		167.3 %

 

Port Logistics subgroup 1,2
in € million		7–9 | 2024		7–9 | 2023		Change
Revenue		413.4		353.6		16.9 %
EBITDA		70.7		64.0		10.4 %
EBITDA margin in %		17.1		18.1		- 1.0 pp
EBIT		29.8		21.3		39.9 %
EBIT margin in %		7.2		6.0		1.2 pp
Profit after tax and minority interests		7.4		0.4		1624.2 %
Earnings per share in € 3		0.10		0		1624.2 %
1 Before consolidation between subgroups
2 Listed class A shares
3 Basic and diluted

 

Container segment
in € million		7–9 | 2024		7–9 | 2023		Change
Revenue		199.4		182.1		9.5 %
EBITDA		38.9		33.2		17.2 %
EBITDA margin in %		19.5		18.2		1.3 pp
EBIT		16.7		8.2		103.6 %
EBIT margin in %		8.4		4.5		3.9 pp
Container handling in thousand TEU		1,556		1,579		- 1.5 %

 

Intermodal segment
in € million		7–9 | 2024		7–9 | 2023		Change
Revenue		194.1		152.8		27.1 %
EBITDA		36.7		33.6		9.1 %
EBITDA margin in %		18.9		22.0		- 3.1 pp
EBIT		23.6		20.3		16.2 %
EBIT margin in %		12.1		13.3		- 1.2 pp
Container transport in thousand TEU		488		404		20.8 %

 

Contact:
Julia Hartmann
Head of Investor Relations

HAMBURGER HAFEN UND LOGISTIK AG
Bei St. Annen 1, D-20457 Hamburg, www.hhla.de

Tel: +49-40-3088-3397
Fax: +49-40-3088-55-3397
E-mail: investor-relations@hhla.de