Panalpina improves profitability by 15% in first quarter of 2019

posted on 17th April 2019 by Justin Burns
Panalpina improves profitability by 15% in first quarter of 2019

In the first quarter (Q1) of 2019 Panalpina has reported that it improved profitability compared to the same period of last year by 15 per cent.

The freight forwarding heavyweight achieved an EBIT of CHF 28.1 million (US$27.8 million) up on the CHF 24.4 million in Q1 2018 and it posted a consolidated profit of CHF 19.2 million (2018: CHF 16.6 million).

Panalpina’s air freight volumes increased eight per cent in Q1 of 2019 to 260,000 tonnes, up on the 241,000 in Q1 2018.

Compared to the same period of last year, gross profit per ton decreased 10 per cent to CHF 666 (YTD 2018: CHF 739 ), while overall gross profit decreased to CHF 173.1 million (2018: CHF 177.8 million).

EBIT in air freight decreased from CHF 26.9 million to CHF 24.9 million. The EBIT-to-gross-profit margin came in at 14.4 per cent compared to 15.1 per cent a year before.

“In the first quarter of this year, Panalpina generated 15% more EBIT and profit than in the same period of last year,” says Panalpina chief executive officer, Stefan Karlen.

“We improved profitability despite a challenging market environment and during a time when considerable management resources were absorbed by the M&A topic. This demonstrates the underlying quality and strength of our organization.”

In Q1 of 2019, Panalpina’s gross profit decreased three per cent to CHF 358.1 million (YTD 2018: CHF 370.7 million), while total operating expenses decreased to CHF 290 million (YTD 2018: CHF 306.3 million). EBIT and consolidated profit increased year-on-year by 15 per cent and 16 per cent, respectively.

EBIT reached CHF 28.1 million compared to CHF 24.4 million a year before and the EBIT-to-gross-profit margin stood at 7.9 per cent, up from 6.6 per cent in 2018. The consolidated profit increased from CHF 16.6 million to CHF 19.2 million.

As for the future, Karlen said: “Since the news of DSV taking over Panalpina broke, circumstances have changed. To give any sort of outlook is not only more challenging than ever before, but also constrained by legal restrictions.

“However, Panalpina continues to conduct business as usual. We have continued to win new business after the transaction was announced and we are determined to keep doing so in the weeks and months ahead.

“We are competing in the market with our strong brand, great capabilities and solid service offering, supporting our customers by providing them with tailored solutions that create value for them. This is our commitment and obligation for the rest of the year.”