Panalpina outperformed the air and ocean freight markets in terms of volume growth as margins remained under pressure.
Financial results for the first quarter 2017 came in below the previous-year period for Panalpina. The international freight forwarding and logistics company rep[ds_preview]orted an EBIT of 16.4 mill. CHF (Q1 2016: 24.0 mill.) and a consolidated profit of 12.4 mill. CHF (Q1 2016: 17.3 mill.).
»We succeeded in outperforming the markets with volume increases of 8% in Air Freight and 7% in Ocean Freight. As expected, margins remained under pressure, however, they are slowly recovering since we saw an upturn in unit profitability compared to the last quarter of 2016,« says Panalpina CEO Stefan Karlen.
Group gross profit decreased 9% to 332.7 mill. CHF (Q1 2016: 364.9 mill.), while total operating expenses were reduced by 7% to 305.7 mill. CHF (Q1 2016: 328.7 mill.) year on year. Panalpina achieved an EBIT of 16.4 mill. CHF (Q1 2016: 24.0 mill.), a decrease of 32%. The EBIT-to-gross-profit margin came in at 4.9% (Q1 2016: 6.6%) and the consolidated profit of the group reached 12.4 mill. CHF (Q1 2016: 17.3 mill.).
Ocean freight volumes increased 7%
Panalpina’s Ocean Freight volumes increased 7% year on year while the market grew by an estimated 4%. The Transatlantic and Far East trade lanes contributed to Panalpina’s growth. However, gross profit per TEU decreased 17% to 282 CHF (Q1 2016: 339), resulting in a gross profit of 105.5 mill. CHF (Q1 2016: 118.1). Quarter on quarter, gross profit per TEU increased. As in the last quarter, EBIT and EBIT-to-gross profit margin were negative with -3.2 mill. CHF (Q1 2016: 4.3 mill.) and -3.0% respectively (3.7%), though both showed an upward trend.
»While the challenging market dynamics are expected to continue throughout 2017, we are cautiously optimistic that we can keep up the strong volume growth in Air and Ocean Freight, further gaining market share,« Karlen says. »One of our top priorities remains, of course, to restore profitability in Ocean Freight«.
