Earnings position

Download

Key figures
in € million	1–6 \| 2020	1–6 \| 2019	Change
Revenue	628.4	693.7	- 9.4 %
EBITDA	140.1	192.9	- 27.4 %
EBITDA margin in %	22.3	27.8	- 5.5 pp
EBIT	55.5	114.3	- 51.5 %
EBIT margin in %	8.8	16.5	- 7.7 pp
Profit after tax and minority interests	14.1	54.7	- 74.2 %
ROCE in %	5.4	11.3	- 5.9 pp

The development of HHLA’s performance data in the first half of 2020 was severely affected by the global coronavirus pandemic. Container throughput decreased markedly by 11.3 % year-on-year to 3,345 thousand TEU (previous year: 3,770 thousand TEU). The decline began in the middle of the first quarter, gathered considerable pace over the previous course of the year and was most noticeable at the container terminals in Hamburg. Throughput at the international terminals was only slightly below the prior-year level, although there were strong regional variations in the first half-year. Container transport decreased significantly by 8.2 % to 718 thousand TEU (previous year: 782 thousand TEU). Road transport was more heavily affected by the decrease than rail transport.

The 9.4 % decrease in the HHLA Group’s revenue to € 628.4 million (previous year: € 693.7 million) during the reporting period was roughly on a par with the fall in performance data. All operating segments were significantly affected by the decrease in revenue.

In its Container, Intermodal and Logistics segments, the listed Port Logistics subgroup generated revenue of € 614.2 million in the reporting period (previous year: € 677.5 million). The non-listed Real Estate subgroup posted revenue of € 18.0 million (previous year: € 19.9 million). This decrease at both subgroups was largely in line with the trend for the Group as a whole.

Changes in inventories of € 0.6 million (previous year: € 0.0 million) had no noticeable effect on consolidated profit. Own work capitalised amounted to € 2.2 million (previous year: € 3.3 million).

Other operating income totalled € 22.3 million (previous year: € 19.0 million). One liability from a contingent consideration agreed as part of the acquisition of Bionic Production GmbH was derecognised in profit and loss as a result of a new agreement with the seller. This amount had a significant effect on the increase in other operating income.

Operating expenses decreased by 0.6 % to € 598.0 million (previous year: € 601.6 million). This much lower decrease as compared to the performance data and revenue was due to the development of union wage rates, as well as an increase in headcount in the second half of 2019, increased depreciation and amortisation and higher other operating expenses.

The cost of materials was reduced by 7.8 % to € 186.1 million during the reporting period (previous year: € 201.7 million). The decrease was not quite as marked as the decline in revenue since energy costs could not be decreased. As a result, the cost of materials ratio increased slightly to 29.6 % (previous year: 29.1 %).

There was a minor year-on-year increase of 0.1 % in personnel expenses to € 260.0 million (previous year: € 259.9 million). The strong increase in the personnel expense ratio to 41.4 % (previous year: 37.5 %) was partly due to wage increases in the previous year and to the decrease in revenue with an increase in headcount as a result of the expansion of business activities in rail transport.

Other operating expenses rose considerably by 9.7 % to € 67.3 million in the reporting period (previous year: € 61.4 million). The ratio of expenses to revenue rose from 8.9 % in the previous year to 10.7 %. This was caused by a rise in maintenance costs in the Container segment and increased expenses for consultancy and services.

As a result of reduced volumes, the operating result before depreciation and amortisation (EBITDA) fell by 27.4 % to € 140.1 million (previous year: € 192.9 million) The EBITDA margin declined to 22.3 % in the reporting period (previous year: 27.8 %).

Depreciation and amortisation increased significantly by 7.7 % to € 84.6 million (previous year: € 78.6 million) in connection with a value adjustment for goodwill of Bionic Production GmbH and the expansion of rail transport; its ratio to revenue rose to 13.5 % (previous year: 11.3 %).

There was a strong decrease in the operating result (EBIT) of € 58.8 million, or 51.5 %, to € 55.5 million during the reporting period (previous year: € 114.3 million). The EBIT margin amounted to 8.8 % (previous year: 16.5 %). In the Port Logistics subgroup, EBIT fell by 53.5 % to € 49.1 million (previous year: € 105.6 million). In the Real Estate subgroup, EBIT decreased by 27.8 % to € 6.1 million (previous year: € 8.5 million).

Net expenses from the financial result increased by € 2.2 million, or 13.9 %, to € 17.7 million (previous year: € 15.5 million). The main reason for this is the lower earnings from associates accounted for using the equity method.

At 30.9 %, the Group’s effective tax rate was higher than in the previous year (previous year: 26.3 %).

Profit after tax decreased by 64.2 %, from € 72.9 million to € 26.1 million. Profit after tax and minority interests was significantly lower than in the previous year at € 14.1 million (previous year: € 54.7 million). Earnings per share amounted to € 0.19 (previous year: € 0.75). The listed Port Logistics subgroup achieved earnings per share of € 0.15 (previous year: € 0.71). Earnings per share of the non-listed Real Estate subgroup were also down year-on-year to € 1.27 (previous year: € 1.80). The return on capital employed (ROCE) amounted to 5.4 % (previous year: 11.3 %).