Freight Forwarders

Panalpina’s profits increase in 1H 2018, air freight volumes rise

Swiss freight forwarder Panalpina’s air freight volume increased by three per cent in the first half (1H) of this year compared to the same period last year.

The heavyweight forwarder’s volumes reached 489,400 tonnes. In the first quarter tonnage was 240,500 tonnes (2017: 233,200 tonnes) and quarter two 248,900 tonnes (2017: 239,900 tonnes).

In 1H of this year, gross profit per ton increased 16.4 per cent to CHF 725 ($724) (2017: CHF 623), while gross profit increased to CHF 354.7 million (2017: CHF 294.6 million).

EBIT in air freight increased from CHF 39.1 million in 2017 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.

The forwarder’s overall net forwarding revenue for 1H of 2018 came to CHF 2,916 (2017: 2,632 million) and consolidated profit was CHF 36.1 million (2017: CHF 29.9 million).

Panalpina chief executive officer, Stefan Karlen said: “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.

“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.”

As for the future, Karlen said: 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.

“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.”