Financial position

Balance sheet analysis

Compared with year-end 2018, the HHLA Group’s balance sheet total grew by a total of € 631.9 million to € 2,604.8 million as of 31 March 2019 (31 December 2018: € 1,972.9 million).

On the assets side of the balance sheet, non-current assets rose by € 580.9 million to € 2,027.8 million (31 December 2018: € 1,446.9 million). This was primarily due to the effects from the initial application of IFRS 16 amounting to € 571.2 million (primarily attributable to rights of use of € 542.8 million and deferred taxes of € 28.4 million). Current assets increased by € 51.0 million to € 577.0 million (31 December 2018: € 526.0 million). This was largely attributable to the increase in cash, cash equivalents and short-term deposits of € 45.8 million.

On the liabilities side, equity fell by € 43.8 million to € 571.0 million compared to the year-end figure (31 December 2018: € 614.8 million). The decrease was largely due to the effects of the initial application of IFRS 16 amounting to € 58.5 million as well as the interest rate adjustments to pension provisions. Profit for the period under review of € 38.4 million had an opposing effect. The equity ratio decreased to 21.9 % (31 December 2018: 31.2 %).

Non-current liabilities rose by € 616.3 million to € 1,731.0 million (31 December 2018: € 1,114.7 million). This increase is largely due to the effects of the initial application of IFRS 16 amounting to € 589.4 million. As a result of the interest rate adjustments, pension provisions increased by € 41.1 million compared to 31 December 2018. Current liabilities rose by € 59.4 million to € 302.8 million (31 December 2018: € 243.4 million), also primarily due to the effects from the initial application of IFRS 16 amounting to € 40.3 million.

Investment analysis

Capital expenditure in the reporting period totalled € 35.4 million, well above the prior-year figure of € 21.4 million. The acquisition by METRANS of container wagons and the procurement of storage cranes and large-scale equipment for horizontal transport at the HHLA container terminals in the Port of Hamburg accounted for a major share of capital expenditure in the first quarter of 2019.

Liquidity analysis

Cash flow from operating activities rose by € 39.8 million to € 94.4 million as of 31 March 2019 (previous year: € 54.6 million). This was due to the improvement in EBIT, as well as to the lower year-on-year increase in trade receivables and other assets.

Investing activities led to cash outflow of € 47.9 million (previous year: € 20.5 million). This trend resulted mainly from payments for short-term deposits and a year-on-year increase in investments in property, plant and equipment.

Cash flow from financing activities was € 39.9 million lower than in the previous year. This was due to payments for the acquisition of the remaining shares in METRANS a.s., Prague/Czech Republic, in the previous year. By contrast, the initial application of IFRS 16 resulted in higher payments for the redemption of lease liabilities in the reporting period.

Financial funds totalled € 282.3 million as of 31 March 2019 (31 March 2018: € 231.4 million). Including all short-term deposits, the Group’s available liquidity at the end of the first quarter of 2019 amounted to € 322.3 million (31 March 2018: € 251.4 million).