Panalpina reports record year in Air Freight

International freight forwarding and logistics company Panalpina ended the year 2017 with strong Air Freight volumes and margins, while in the fourth quarter margin pressure continued to impact the financial results in Ocean Freight.

For the full year, Panalpina’s reported EBIT increased from CHF 82.0 million (adjusted for restructuring costs 2016: CHF 109.9 million) to CHF 103.3 million and the reported consolidated profit increased from CHF 52.3 million (adjusted 2016: CHF 80.2 million) to CHF 57.5 million. In local currencies, reported EBIT and consolidated profit in 2017 reached CHF 106.0 million and CHF 60.0 million, respectively.

In 2017, Panalpina’s gross profit decreased 2% to CHF 1,397.8 million (2016: CHF 1,424.6 million), while total operating expenses decreased 1% to CHF 1,251.6 million (2016: CHF 1,265.0 million). Reported EBIT and consolidated profit increased year-on-year, but decreased when compared to respective 2016 figures adjusted for restructuring costs.

Reported EBIT reached CHF 103.3 million compared to CHF 82.0 million a year before (adjusted 2016: CHF 109.9 million) and the EBIT-to-gross-profit margin stood at 7.4% up from 5.8% (adjusted 2016: 7.7%). The consolidated profit increased from CHF 52.3 million to CHF 57.5 million. Barring negative currency impacts, reported EBIT and consolidated profit in 2017 reached CHF 106.0 million and CHF 60.0 million, respectively.

Panalpina’s Air Freight volumes increased 8% in 2017. The company transported 995,900 tons of air cargo last year (2016: 921,400), the highest volumes in the company’s history. From January to December, gross profit, unit profitability and EBIT in Air Freight increased with every quarter.

Compared to the same period of last year, gross profit per ton decreased 1% to CHF 642 (2016: CHF 646), while overall gross profit increased to CHF 639.4 million (2016: CHF 595.2 million). Reported EBIT in Air Freight increased from CHF 80.8 million (adjusted 2016: CHF 93.5 million) to CHF 110.3 million. The EBIT-to-gross-profit margin came in at 17.3% compared to 13.6% (adjusted 2016: 15.7%) a year before.

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