HHLA Reports Mixed Financial Outcomes for 2023 but Continues Strategic Investments

Hamburger Hafen und Logistik AG (HHLA) experienced reduced revenue and earnings in the 2023 financial year amidst a tough global trade environment. Despite global challenges, including the ongoing war in Ukraine, geopolitical tensions, and economic uncertainties, HHLA is moving forward with investments aimed at modernizing its terminals and expanding its European network.

The company reported an 8.3% decrease in group revenue, totaling €1,446.8 million. The group operating result (EBIT) also fell by 50.4% to €109.4 million. CEO Angela Titzrath highlighted that compared to major competitors, HHLA has managed relatively well. She expressed commitment towards enhancing HHLA's role as a European logistics group through modernization efforts and the development of sustainable logistics solutions.

Within the Port Logistics subgroup, revenue saw an 8.6% downturn to €1,408.9 million, attributed to a drop in container throughput volumes and fewer storage fees at Hamburg container terminals. The Container segment, specifically, witnessed a 7.5% decline in throughput volumes, significantly affected by lower volumes for Far East shipping regions, especially China. Meanwhile, the International container terminals saw throughput volume plummet by 29.1%, primarily due to challenges at Container Terminal Odessa following the Russian invasion.

On a positive note, the Real Estate subgroup, covering HHLA’s properties in Hamburg's Speicherstadt and fish market area, reported a 5.3% increase in revenue to €46.5 million, thanks to near full occupancy and rising rental income from newly developed properties. However, increased maintenance expenses and other costs led to a 12.5% decrease in the subgroup's operating result (EBIT).

Looking ahead to 2024, HHLA expects a moderate revenue increase and an EBIT ranging between €85 million and €115 million, despite acknowledging uncertainties related to geopolitical tensions and global trade. The company remains devoted to its dividend policy, proposing a dividend of €0.08 per class A share for 2023.