Integrated logistics and transport solutions provider, Logwin AG reported a 14.7% increase in revenue to €1.4bn in FY 2024, driven by rising air and ocean freight rates and higher global volumes in its Air + Ocean business. However, EBITDA declined by 8.8% to €83.6m due to competitive pressures.
The Air + Ocean segment saw a revenue jump to €1.19bn from €917.2m, but EBITA dropped to €76.5m (from €86.6m) amid market competition. The Solutions segment’s revenue declined to €255m (from €341.9m) due to the sale of its German retail network and reduced transport volumes. Despite this, EBITA in Solutions improved slightly to €19.8m (from €18.9m), aided by cost-cutting measures and contract logistics expansion.
The Other segment, which includes real estate and internal services, saw a 20.5% revenue increase.
Logwin expanded its global network with acquisitions in Oceania, Sweden, Germany, and Spain, along with new ventures in Latvia and Bulgaria, despite intense competition.
As an international logistics company, Logwin is exposed to macroeconomic and political risks, as well as risks arising from its operational activities, including regulatory challenges. In particular, the ongoing war in the Red Sea region may further disrupt global supply chains, compounding the challenges observed in previous years.
Furthermore, the company faces significant risks due to sluggish global economic growth, particularly in the euro area and Asian economies. A weakened short- and medium-term economic outlook, driven by persistently high inflation, energy shortages, and geopolitical conflicts—such as Russia’s ongoing war against Ukraine—poses considerable challenges. Additionally, trade barriers and politically motivated restrictions on free trade, including US tariffs on imports, could have a substantial negative impact on the company’s assets, financial position, and earnings.
According to the provider, the worse-than-expected economic conditions across key regions and industries—including textiles, fashion, automotive, and wholesale and retail trade—could reduce demand for Logwin’s logistics services, potentially requiring operational adjustments.
However, the company remains cautiously optimistic, suggesting that if the economic environment in key industrial regions—particularly China, the USA, and Europe—improves beyond current forecasts, it could create additional growth opportunities. Since the economic performance of its customers directly impacts their demand for warehousing and transport services, an increase in import and export volumes would likely contribute to the company’s expansion.
Additionally, the continued global expansion of e-commerce presents another significant opportunity, increasing demand for goods transportation and offering substantial growth potential for both national and international logistics operations.
2025 Forecast
Logwin’s outlook for 2025 comes with a fair amount of uncertainty, given ongoing geopolitical tensions, supply chain disruptions, and economic challenges. The company expects revenue between €1.27bn and €1.55 bn, with lower freight rates and weaker logistics demand playing a role. Global growth is likely to remain moderate—Europe is expected to stagnate, and China continues to face economic struggles, particularly in real estate and trade. Inflation, trade restrictions, and global conflicts could add further pressure.
In the Air + Ocean segment, freight rates are expected to dip slightly, but demand should hold steady. Growth will come from expanding business with existing customers and bringing in new ones. Recent acquisitions will help stabilize sales, and operating income (EBITA) is projected between €74.5m and €91.5m.
The Solutions segment will face a revenue decline as some contracts come to an end, though new acquisitions will help offset the impact.
Logwin bolstered its presence in Scandinavia with the acquisition of Infranordic Shipping & Forwarding AB and expanded into Oceania through Supply Chain International Limited. In 2025, the company is set to take a significant step forward with the acquisition of Hanse Service Group, enhancing its expertise in pharmaceutical and food logistics.
Author: Shruti Sasidharan
Source: Ti Insight
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