- HHLA faced significant financial hurdles in the 2023 financial year, with group revenue taking an 8.3 percent hit.
- HHLA observed a decline in both container throughput and transport volumes, mirroring the broader impacts of global economic strains.
Hamburger Hafen und Logistik AG (HHLA) faced significant financial hurdles in the 2023 financial year, with group revenue taking an 8.3 percent hit, resulting in a drop to €1,447 million from the previous year’s €1,578 million, reports Port News.
HHLA faces significant financial hurdles
The company, a key player in logistics and container handling, observed a decline in both container throughput and transport volumes, mirroring the broader impacts of global economic strains. Container handling saw a reduction of 7.5 percent to 5,917 thousand Twenty-Foot Equivalent Units (TEU), with Hamburg’s container terminals specifically reporting a 6.3 percent decrease. Container transport wasn’t spared either, experiencing a 5.4 percent decrease to 1,602 thousand TEU.
The Port Logistics subgroup, a significant component of HHLA’s operations, also faced setbacks, with revenue falling 8.6 percent to €1,409 million, and the operating result (EBIT) plunging by 53.9 percent to €93 million. This considerable decline in profitability was attributed to decreases in storage fees and the impact of EU sanctions on Russia, which led to a loss of feeder traffic and reduced cargo volumes at the Container Terminal Odessa.
Conversely, the Real Estate subgroup managed a slight increase in revenue, going up by 5.3 percent to €46 million. However, this subgroup too witnessed a decline in its operating result (EBIT) by 12.5 percent to €16 million, primarily due to increased amortization, depreciation, and maintenance expenses.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Port News
