Stable profits in a challenging market environment

In the first nine months of 2016, international freight forwarding and logistics company Panalpina recorded a slight increase of EBIT and consolidated profit, when adjusted for the second-quarter restructuring provision of CHF 26 million.

EBIT reached CHF 93.6 million and the consolidated profit CHF 72.6 million. Against the backdrop of receding markets in air and ocean freight, Panalpina’s volumes increased by 9% in Air Freight while they decreased by 9% in Ocean Freight. Logistics continued its positive development on the EBIT level.

“Despite shrinking air and ocean freight markets and high margin pressure in the first nine months of the year we delivered an improved EBIT and consolidated profit (both adjusted for one-offs).

Continued high cost discipline, particularly in the third quarter, made this achievement possible”, says Panalpina CEO Stefan Karlen. “Our Air Freight and Ocean Freight products developed contrarily. In Air Freight our volumes increased by 9% while they decreased by the same amount in Ocean Freight. This resulted in a practically unchanged overall gross profit when compared to last year.”

Group gross profit decreased 1% to CHF 1,091.7 million in the first nine months of 2016 (YTD 2015: CHF 1,107.3 million).

Total operating expenses amounted to CHF 961 million, 2% less than in the same period of the previous year (YTD 2015: CHF 975.8 million). Adjusted for the oil and gas related restructuring provision of CHF 26.1 million in the second quarter, EBIT reached CHF 93.6 million (reported YTD 2016: CHF 67.5 million; YTD 2015: CHF 92.4 million).

The adjusted EBIT-to-gross-profit margin came in at 8.6% (reported YTD 2016: 6.2%; YTD 2015: 8.3%) and the adjusted consolidated profit amounted to CHF 72.6 million (reported YTD 2016: CHF 46.5 million; YTD 2015: CHF 69.3 million).

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