- ZIM Integrated Shipping’s Q3 2024 revenue surged 117%, reaching $2.77 billion.
- The company reported a dramatic turnaround, with net income of $1.13 billion, compared to a loss last year.
- ZIM declared a dividend of $440 million, including a $100 million special payout.
ZIM Integrated Shipping Services Ltd. saw a record-breaking performance in Q3 2024, with significant growth in revenue and net income. Despite the challenging global market conditions, ZIM’s strategic investments and increased spot volume exposure have propelled it to strong profitability. The company continues to focus on operational excellence and value creation for shareholders.
Q3 2024 Financial Performance
ZIM reported impressive revenue growth, reaching $2.77 billion for Q3 2024, marking a 117% year-on-year (YoY) increase.
The company saw a dramatic improvement in its financial performance, turning a loss into a net income of $1.13 billion, compared to a $2.27 billion loss in Q3 2023.
ZIM’s adjusted EBITDA jumped by 626% YoY to $1.53 billion, while adjusted EBIT grew by $1.45 billion to $1.24 billion.
Volume and Freight Rates
ZIM’s carried volume reached 970k TEUs, reflecting a 12% increase YoY, showcasing higher demand for its services.
Freight rates also soared, rising by 118% YoY to $2,480 per TEU, reflecting favorable market conditions.
The company reduced its net debt to $2.7 billion, improving its net leverage ratio to 0.9x, a significant decrease from 2.2x last year.
2024 Full-Year Guidance
ZIM updated its full-year 2024 forecast, raising the expectations for adjusted EBITDA to $3.3–3.6 billion, up from a prior estimate of $2.6–3.0 billion. Similarly, adjusted EBIT guidance was revised to $2.15–2.45 billion.
ZIM declared a total dividend of $440 million, which includes a special dividend of $100 million for shareholders.
CEO’s Perspective
Eli Glickman, ZIM’s CEO, attributed the strong results to the company’s record-breaking volumes, increased exposure to spot volumes, and continued investment in modern vessels.
These elements have allowed ZIM to stay ahead in the competitive shipping industry.
Nine-Month Performance (YoY Comparison)
For the first nine months of 2024, ZIM reported:
- Revenue: $6.26 billion (+58% YoY)
- Net Income: $1.59 billion (compared to a $2.54 billion loss in 2023).
- Adjusted EBITDA Margin: 44%, up from 22% last year.
Forward-Looking Outlook
ZIM remains focused on managing the evolving shipping market dynamics and expects continued strong performance through the rest of 2024. However, the company also cautioned that market conditions, geopolitical factors, and global economic instability could impact future performance.
Forward-looking statements reflect ZIM’s expectations and are subject to risks, including changes in market conditions, operational challenges, and geopolitical uncertainties. Financial figures are compliant with IFRS but also include non-IFRS measures for comparison.
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Source: ZIM
