In a very challenging environment, the Panalpina group reported a slight increase in EBIT and consolidated profit in the 2015 financial year. EBIT reached CHF 117.2 million (currency adjusted: CHF 134.2 million or +15%) and consolidated profit CHF 88.2 million (currency adjusted: CHF 100.6 million or +16.3%) in 2015. Net forwarding revenue was CHF 5.85 billion after CHF 6.7 billion in 2014. The gross profit decreased 7.1% to CHF 1.47 million. Panalpina reported an EBIT-to-gross profit margin increased to 8.0% (adjusted: 8.5%), up from 7.4% in 2014.
“We have maintained profitability in a year that was characterized by a soft market, the low oil price, negative currency impacts and high IT investments on our end,” says Panalpina CEO Peter Ulber. “The results prove our resilience in more difficult times. Excluding currency effects, EBIT even increased by 15 percent.”
Panalpina’s Air Freight volumes decreased 2.5% in 2015, in a market that contracted by an estimated 1 percent. This was related to lower volumes from customers in the oil and gas and automotive industries which shipped less cargo. The company transported 836,200 tons of air cargo last year (2014: 857,800 tons). Ocean Freight volumes decreased 0.8 percent year-on-year to 1.59 million TEU.
Gross profit of the group’s Logistics product decreased 10.7 percent to CHF 409.3 million in 2015. However, by parting from more loss-making facilities, Logistics achieved its first positive EBIT of CHF 2.1 million for the full year, compared to an EBIT loss of CHF 8.2 million last year.
In 2015 Panalpina expanded its Logistics Manufacturing Services, acquired its Egyptian agent Afifi and opened new offices in Morocco, Kenya and Myanmar. In addition, Panalpina acquired Airflo, Kenya’s second largest air freight forwarder, specializing in the world-wide export of perishables.
“With a good number of initiatives already launched and new ones to come, we are aiming to outgrow the air and ocean freight markets in 2016,” said Ulber. Panalpina expects the air freight market to grow between 1 and 2 percent and the ocean freight market to grow by 2 percent in 2016.
The Panalpina group with its headquarters in Basel, is one of the world’s leading providers of supply chain solutions. The company combines its core products of Air Freight, Ocean Freight, and Logistics to deliver globally integrated, tailor-made end-to-end solutions. The group operates a global network with some 500 own offices in more than 75 countries, and it works with partner companies in a further 90 countries. Panalpina employs over 15,000 people worldwide.