Panalpina’s H1 2019 revenues up 1.6% year-on-year

Panalpina Muscat office Oman

Panalpina has released its financial results for the first half of 2019 (H1 2019), ending June 30, 2019. Revenues for the period totalled CHF*2,963.6m, a 1.6% year-on-year increase (H1 2018: CHF2,916.5m), and EBIT reached CHF52.1m, down 5% when compared to the previous year (H1 2018: CHF54.7m). Panalpina’s gross profit decreased 4% to CHF716.4m (H1 2018: CHF744.4m). According to the company, the results for H1 2019 were affected by challenging macroeconomic and political factors and aggressive competition as well as lower margins in air freight and lower volumes in the automotive sector.

For the relevant period, Panalpina recorded revenues of CHF1,513.2m in its Air Freight division, down 2.6% year-on-year (H1 2018: CHF1,553.1m). EBIT in Air Freight decreased by 41.4% to CHF38.4m (H1 2018: CHF 53.4m). Air Freight volumes increased 5% year-on-year. Compared to the same period last year, gross profit per ton decreased 9% to CHF659, while overall gross profit decreased to CHF337.2m (H1 2018: CHF354.6m). Substantially lower volumes in the automotive sector led to the decline in gross profit.

Panalpina’s Ocean Freight revenues totalled CHF1,160.3m in H1 2019, up 5.8% year-on-year (H1 2018: CHF1,097.1m). For H1 2019, Ocean Freight recorded an EBIT of CHF5.5m, a 200% increase compared to a loss of CHF5.5m the year before. Volumes decreased 3% year-on-year and gross profit per TEU increased slightly to CHF300, bringing gross profit to CHF215.9m (H1 2018: CHF220.9m).

In Logistics, revenues increased 9% year-on-year to CHF290.1m (H1 2018: CHF266.3m), while EBIT reached CHF8.1m for H1 2019, compared to CHF6.8m for the same period last year, a 19.1% year-on-year increase. Gross profit decreased 3% year-on-year to CHF163.3m (H1 2018: CHF168.8m) due to seasonality and the downturn in the automotive and technology sectors. The division successfully expanded its Logistics Manufacturing Services and in Q2 2019 achieved the highest quarterly EBIT ever.

Source: Panalpina Group

*$:CHF0.98/€:CHF1.11