Yahoo Finance

• Group Revenue: Increased by 6.6% to USD20.7 billion.

• Group EBITDA: Improved to USD5 billion.

• Cash Flow: Generated robust cash flow of USD2.6 billion.

• Q4 '24 EBIT: USD849 million, improved from a USD253 million loss in the prior year.

• Full-Year Group EBIT '24: Slight increase to USD2.8 billion.

• Return on Invested Capital: 14.1%.

• Liner Shipping Transport Volume: Increased by 4.7% to 12.5 million TEUs.

• Unit Cost: Increased by 2% to USD1,283 per TEU.

• Terminal and Infrastructure EBIT: Increased to USD72 million.

• Operating Cash Flow '24: Reached USD4.7 billion.

• Vessel Capacity: Close to 2.4 million TEUs.

• Container Box Capacity: Nearly 3.7 million TEU.

• Cash Position: Declined to USD5.7 billion.

• Liquidity Reserves: USD8.5 billion.

• Dividend Proposal: EUR8.20 per share, totaling EUR1.4 billion.

• Warning! GuruFocus has detected 2 Warning Sign with FDS.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hapag-Lloyd AG (HPGLY) achieved the third best operational result in its history, driven by a favorable balance between supply and demand and stronger market growth than expected.

• The company made substantial investments in its fleet, ordering 24 new vessels to remain competitive and reduce emissions.

• Customer satisfaction remains high with a Net Promoter Score (NPS) above 50, indicating strong customer loyalty.

• Hapag-Lloyd AG (HPGLY) reported a 6.6% increase in group revenue, reaching USD20.7 billion, driven by higher volumes across both business segments.

• The company generated robust cash flow of USD2.6 billion, strengthening its solid balance sheet while continuing to make sizable investments.

Negative Points

• Despite strong operational performance, group profit declined due to a lower net liquidity position, resulting in reduced interest income.

• The company faced increased transport and terminal costs, impacting overall profitability.

• Unit costs were significantly affected by rerouting vessels, operational disruptions at ports, stricter environmental regulations, and general cost inflation.

• Bunker costs increased due to the shipping sector's inclusion in the EU Emission Trading System, adding USD91 million in additional expenses.

• The company anticipates uncertainty in market growth for 2025, with potential impacts from geopolitical issues and trade discussions.

Q & A Highlights

Q: Can you give us an indication of what you expect market growth to be in 2025, especially with regards to recent comments from the Port of L.A. suggesting a potential reduction in imports? A: We expect market growth to be around 4% in 2025. Based on what we see in the first quarter, we have no reason to doubt that, but there is some uncertainty. We anticipate transport volumes to increase clearly, meaning over 10%, due to higher scheduled reliability and not significant capacity growth.