Earnings position

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Key figures
in € million	1–6 \| 2019	1–6 \| 2018	Change
Revenue	693.7	633.0	9.6 %
EBITDA	192.9	157.7	22.3 %
EBITDA margin in %	27.8	24.9	2.9 pp
EBIT	114.3	99.9	14.4 %
EBIT margin in %	16.5	15.8	0.7 pp
Profit after tax and minority interests	54.7	52.4	4.5 %
ROCE in %	13.1	14.7	- 1.6 pp

The economic development of HHLA in the first half of 2019 was encouraging. HHLA recorded a moderate increase in container throughput of 3.8 % to 3,770 thousand TEU (previous year: 3,631 thousand TEU). This growth was primarily due to the incorporation of the container terminal in Tallinn into the HHLA consolidated group as of the second half of 2018.

Container transport increased significantly by 9.6 % to 782 thousand TEU (previous year: 713 thousand TEU). Both rail and road transport contributed to this growth.

The HHLA Group’s revenue rose markedly by 9.6 % to € 693.7 million during the reporting period (previous year: € 633.0 million). Revenue generated by the container terminals and in container transport outstripped the growth in volume described above. The Logistics segment also achieved strong revenue growth. In its Container, Intermodal and Logistics segments, the listed Port Logistics subgroup generated revenue of € 677.5 million in the reporting period (previous year: € 617.1 million). This increase almost matched the trend for the Group as a whole. The non-listed Real Estate subgroup posted moderate revenue growth of 3.5 % to € 19.9 million (previous year: € 19.3 million).

As in the previous year, changes in inventories had no noticeable impact on consolidated profit. Own work capitalised amounted to € 3.3 million (previous year: € 3.0 million).

Other operating income amounted to € 19.0 million (previous year: € 21.2 million).

With an increase of 7.9 % to € 601.6 million (previous year: € 557.7 million), operating expenses rose more slowly than revenue. While the application of IFRS 16 had a positive effect on the cost structure, the year-on-year increase resulted from the growth in volume, the integration of HHLA TK Estonia and the conversion of the company pension scheme.

The cost of materials rose by 12.9 % in the reporting period to € 201.7 million (previous year: € 178.7 million). The increase in the cost of materials ratio to 29.1 % (previous year: 28.2 %) was partly due to strong volume growth in the material-intensive Intermodal segment.

Personnel expenses increased in line with revenue growth by 9.4 % year-on-year to € 259.9 million (previous year: € 237.6 million). The personnel expense ratio remained unchanged at 37.5 %. A reduction in the personnel expense ratio in view of increasing volumes was prevented by a temporary increase in personnel at the Container Terminal Tollerort in connection with the launch of the new N4 terminal software, as well as by the conversion of the company pension scheme.

Other operating expenses decreased markedly in the reporting period by 26.6 % to € 61.4 million (previous year: € 83.7 million), primarily as a result of the initial application of IFRS 16. The ratio of expenses to revenue decreased from 13.2 % in the previous year to 8.9 %.

As a result, there was a strong increase in the operating result before depreciation and amortisation (EBITDA) of 22.3 % to € 192.9 million (previous year: € 157.7 million). The EBITDA margin increased to 27.8 % in the reporting period (previous year: 24.9 %).

Depreciation and amortisation increased primarily as a result of the initial application of IFRS 16 by 36.0 % to € 78.6 million (previous year: € 57.8 million), while the share of revenue increased to 11.3 % (previous year: 9.1 %).

There was a strong increase in the operating result (EBIT) of € 14.4 million or 14.4 % to € 114.3 million during the reporting period (previous year: € 99.9 million). The effects of the initial application of IFRS 16 amounted to € 7.1 million. The EBIT margin amounted to 16.5 % (previous year: 15.8 %). In the Port Logistics subgroup, EBIT rose by 15.6 % to € 105.6 million (previous year: € 91.4 million). The Real Estate subgroup achieved EBIT growth of 1.3 % to € 8.5 million (previous year: € 8.4 million).

Net expenses from the financial result increased by € 7.9 million or 105.3 % to € 15.5 million (previous year: € 7.6 million). This was largely due to the changes in lease accounting from the initial application of IFRS 16.

At 26.3 %, the Group’s effective tax rate was slightly higher than in the previous year (25.5 %).

Profit after tax and minority interests was up on the previous year at € 54.7 million (previous year: € 52.4 million). Earnings per share amounted to € 0.75 (previous year: € 0.72). The listed Port Logistics subgroup achieved earnings per share of € 0.71 (previous year: € 0.68). Earnings per share of the non-listed Real Estate subgroup were down on the prior-year figure at € 1.80 (previous year: € 1.87). Return on capital employed (ROCE) reached 13.1 % (previous year: 14.7 %).