Panalpina improves profitability in 1st half

Half way into 2011, the Panalpina Group reported further organic gross profit growth despite a slowing environment. In the second quarter of 2011, gross profit decreased by 2% year-on-year to CHF 371 million.

Currency adjusted, it increased by 10%, supported by organic growth across all regions and segments, especially in North and Latin America. Panalpina’s focus on profitability affected volumes. Also, the strength of the Swiss franc had a considerable impact on the financial results of the Group.

“A year ago we set out to restore profitability in 2011. Half way into the year we can say that we are well on track. I am pleased with the high organic gross profit growth in our reporting regions North and Latin America, as well as Asia Pacific. In the first half of 2011, the underlying EBITDA increased by 25%, in local currencies even by 42%”, said CEO Monika Ribar.

Panalpina’s profitability restoration program that was initiated last year has taken its toll on the volume development, however, “After having terminated certain high-volume, low-margin contracts, we were not able to compensate for these volumes fast enough with new business. The market slowdown in the second quarter of 2011 did not help in this regard,” explained Ribar.