Weakened Economy And Supply Chain Issues Impact HHLA’s Q1 2024 Results

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  • HHLA’s Q1 2024 results were adversely affected by a challenging market environment and supply chain disruptions, resulting in a slight decrease in revenue.
  • Container throughput increased by 3.3%, while container transport dropped by 5.5%.
  • Group operating result (EBIT) declined by 23.9%, and the profit after tax fell to € -1.1 million.
  • Despite market uncertainties, HHLA continues to invest in its network and facilities.

Hamburger Hafen und Logistik AG (HHLA) faced a tough first quarter in 2024 due to ongoing economic challenges and supply chain disruptions. These factors led to a slight decline in revenue and a significant drop in earnings. Despite these setbacks, HHLA remains committed to its forward-looking transformation and investments in infrastructure.

Port Logistics Performance

The Port Logistics subgroup experienced a slight revenue decrease to €354.9 million, with the operating result (EBIT) dropping by 25.6% to €13.7 million. Container throughput increased by 3.3%, driven by higher volumes from the Americas, but container transport fell by 5.5%. The EBIT margin fell to 3.9%, reflecting the impact of geopolitical tensions and supply chain disruptions.

Intermodal Segment Performance

The Intermodal segment saw a significant decrease in container transport, down by 5.5% to 386 thousand TEU. Rail transport dropped by 3.2%, affecting traffic with Adriatic seaports and Poland, while road transport decreased by 16.8%. Despite a 3.5% fall in revenue to €151.8 million, the EBIT dropped by 34.3% due to higher union wage rates and expanded rail operations.

Real Estate Subgroup Performance

HHLA’s real estate properties in Hamburg maintained stable occupancy rates. Revenue decreased by 2.0% to €11.4 million, mainly due to demolitions in the fish market area for new projects. The operating result (EBIT) fell by 17.0% to €3.6 million, impacted by expenses related to the reletting of spaces in the Speicherstadt warehouse district.

HHLA expects the challenging market conditions to persist but remains focused on strategic investments and modernization efforts. The outlook for the 2024 financial year remains unchanged from the forecast published in the 2023 Annual Report.

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Source: Port of Hamburg

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