Hamburger Hafen und Logistik (HHFA) Q2 2024 earnings summary

Executive summary

• Revenue increased by up to 4.9% to €760.3 million in H1 2024, with profit after tax up 28.6% to €23.4 million, despite global economic slowdown, geopolitical tensions, and high energy costs impacting logistics and export-oriented industries.

• Container throughput rose 2.2% to 2,940 thousand TEU, and container transport increased 1.8% to 833 thousand TEU, aided by temporary route changes and the acquisition of Roland Spedition GmbH.

• Sustainability initiatives advanced, including electrification of equipment, hydrogen-powered vehicles, and the first hydrogen filling station for port vehicles.

• Preliminary agreement reached with MSC and the City of Hamburg for a business combination, including a €450 million capital injection and commitments to maintain business independence, pending regulatory approvals.

• Terminal modernization, automation, and European network expansion continued, including the integration of new subsidiaries.

Financial highlights

• Revenue rose up to 4.9% year-over-year to €742.5 million, supported by higher storage fees and network expansion.

• EBIT increased up to 27.5% to €58.9 million, with the Port Logistics subgroup showing a 27.5% EBIT increase; EBIT margin improved to 7.7%.

• Earnings per share reached €0.18 (Group), €0.12 (Port Logistics); profit after tax and minorities up 231.5% to €8.9 million.

• Cash flow from operating activities was €92.6–99.0 million; free cash flow negative at up to €-35.3 million due to planned capex.

• Available liquidity at end of June 2024 ranged from €90.3 million to €174.6 million.

Outlook and guidance

• Container throughput growth forecast lowered from significant to moderate; container transport forecast raised to significant increase due to acquisition impact.

• Revenue outlook upgraded from moderate to significant increase; EBIT guidance for 2024 confirmed at €70–115 million.

• Capital expenditure for 2024 expected at €360–450 million.

• Medium-term EBIT target of €400 million postponed to 2027 due to external conditions and asset addition delays.

• Dividend policy remains at 50–70% of net profit after minorities.