Freight forwarder Panalpina sees rise in Q1 profits
April 20, 2018: Freight forwarder Panalpina is off to an encouraging start to 2018 as its profits rise, helped by growth from air freight and logistics.
The company reported an EBIT of CHF 24.4 million (YTD 2017: CHF 16.4 million) and a consolidated profit of CHF 16.6 million (YTD 2017: CHF 12.4 million).
Air freight volumes registered 3 percent increase in Q1, with gross profit increasing to CHF 177.8 million compared to the same period last year.
“Profitability per transported unit increased in both Air and Ocean Freight,” says Stefan Karlen, CEO, Panalpina. “In Ocean Freight we still recorded a loss, but it has come down from the last quarter of 2017. Logistics contributed to the good overall performance with a solid EBIT result.”
However, though the profitability from ocean freight took off, its volumes decreased by 4 percent year-on-year. The company mentions this is because of a discontinued high-volume contract. Gross profit for the division was CHF 108.9 million (YTD 2017: CHF 105.5 million).
In Logistics, gross profit increased 2 percent to CHF 84.0 million year-on-year (YTD 2017: CHF 82.5 million).
“Global air freight demand continues to be healthy and the carriers have begun to increase rates substantially. We will have to be very disciplined in passing these rate increases on as we head for a summer season that could be busier than usual again,” says Karlen. “In Ocean Freight, our immediate focus is clearly on improving profitability. In Logistics, we have made important investments that put us in a good position for top-line growth during the rest of the year.