Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hamburger Hafen und Logistik AG (HHULY, Financial) recorded an increase in container throughput in the first half of 2024, despite global economic challenges.
- The acquisition of Austrian company Roland Spedition GmbH contributed positively to revenue growth.
- Modernization efforts at the Hamburg container terminal, including the implementation of state-of-the-art technologies, are expected to enhance productivity and climate-friendliness.
- The company has made significant progress in expanding its European network, particularly through its rail subsidiary Matrans.
- HHULY has reached a preliminary framework agreement with MSC and the City of Hamburg, which includes a capital injection of EUR450 million and commitments for employee welfare.
Negative Points
- The company faces challenges from a volatile logistics environment, impacted by geopolitical tensions and economic slowdowns in key markets like China.
- Persistently high energy costs and increasing compliance requirements are burdening Germany's export-oriented industrial output.
- Container throughput at HHULY terminals lost some momentum in Q2, with a slight increase of only 2.2% in the first half of 2024.
- The logistics segment reported a revenue decline of 5.1% compared to the previous year, with vehicle logistics particularly weak.
- Free cash flow was negative at EUR33.5 million, and cash flow from operating activities decreased by around EUR9 million.
Q & A Highlights
Q: Can you provide an overview of the market environment and its impact on HHLA's performance in the first half of 2024?
A: Angela Titzrath, CEO, explained that 2024 has been challenging due to a volatile logistics environment. Factors such as a slowdown in the Chinese economy, geopolitical tensions, and high energy costs have impacted global economic growth. Despite these challenges, HHLA recorded an increase in container throughput and revenue, partly due to the acquisition of Roland Spedition GmbH.
Q: How did the container segment perform in the first half of 2024?
A: Annette Walter, CFO, reported a slight increase in container throughput by 2.2% to 2.9 million TEUs. Revenue increased by 7.5% to EUR378.7 million, driven by longer dwell times and increased storage fees. EBIT rose by 80% to EUR34.4 million, with an EBIT margin of 9.1%.
Q: What were the key developments in the intermodal segment?
A: The intermodal segment saw a recovery in Q2, with container transport volumes growing by 1.8% to 833,000 TEUs. Rail transport increased by 4%, while road transport declined by 10%. Revenue grew by 4.7% to EUR227.7 million, although EBIT decreased by 4.7% due to increased wage rates and operational expansion.
Q: Can you elaborate on the strategic initiatives and investments HHLA is undertaking?
A: Angela Titzrath highlighted ongoing modernization efforts at the Hamburg terminal, including the implementation of automated transporters and cranes. HHLA is also expanding its European network, with significant progress made by its rail subsidiary Matrans. Additionally, sustainability initiatives include the introduction of hydrogen-powered vehicles and electrification of terminal equipment.
Q: What is the outlook for HHLA's financial performance and strategic goals?
A: Angela Titzrath stated that HHLA has adjusted its medium-term targets due to external challenges. The company now expects to achieve its EBIT potential of EUR400 million by 2027, contingent on political and economic stabilization. Despite current challenges, HHLA remains committed to becoming a leading provider of sustainable logistics solutions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
