HHLA exceeds earnings forecast for 2022 - cautious outlook on 2023
Hamburger Hafen und Logistik AG (HHLA) has increased its group revenue by 7.7 per cent to EUR 1,578 million in the 2022 fiscal year over EUR 1,465 million in 2021 as preliminary figures show, a press release said Friday (February 17, 2023). The group operating result (EBIT) came to EUR 220 million and has exceeded the expected EUR 175 million to EUR 210 million (EUR 228 million in 2021). Container throughput saw a decrease in volumes, which were down by 7.9 per cent to 6,396 thousand TEU over 6,943 thousand TEU in 2021.
HHLA proving resilient
Angela Titzrath, Chair of HHLA's Executive Board, pointed out: “Stability and safety are key requirements for the reliable provision of logistics services. These two conditions were only present to a limited extent last year. The 2022 fiscal year was dominated by the impact of the Russian war on Ukraine and disruptions to the global supply chain." In these challenging times, HHLA once again proved its efficiency and resilience and achieved a positive result. The environment is likely to remain volatile and we are already implementing measures to ensure we remain efficient and viable,” she added.
Positive development in Port Logistics
The listed Port Logistics subgroup grew its revenue by 7.4 per cent to EUR 1,542 million over EUR 1,436 million in 2021 while EBIT decreased by 5.2 per cent year-on-year to EUR 202 million (EUR 213 million in 2021), but was still well above the expected EUR 160 million to EUR 195 million. Significantly higher storage fees resulting from disruptions to global supply chains led to longer container dwell times at HHLA’s terminals in Hamburg, Tallinn and Trieste, and had a positive impact on revenue and earnings. Lower handling volumes, partly due to the effects of the Russian invasion, had a negative impact on earnings. This was compounded by general price increases as well as additional material and personnel costs resulting from higher warehouse usage.
Outlook for fiscal year 2023
Meanwhile, the Real Estate subgroup notched up a 15.9 per cent increase in revenue to EUR 44 million in 2022 (EUR 38 million in 2021). EBIT rose year-on-year by 20.9 per cent to EUR 18 million over EUR 15 million in the previous year. Given the ongoing geopolitical tensions, high inflation and economic sanctions, HHLA’s business operations are likely to face operational challenges during the 2023 fiscal in view of volatility and economic slow-down. HHLA expects to see significant drops in volumes in Q1 of 2023. However, container dwell times will probably return to normal. The situation is expected to improve with a corresponding increase in volumes from Q2 of 2023, but are subject to considerable unceratinty. HHLA will publish its Annual Report with complete, audited figures for the 2022 fiscal year on March 23, 2023.