Hellmann Worldwide Logistics has reported annual financial results and Q1 2021 results. Despite global challenges caused by the COVID-19 pandemic, Hellmann states it has closed the 2020 financial year and the first quarter of 2021 successfully.
Profitable growth in a challenging market environment
While the first half of 2020 was characterised by volume declines, especially in airfreight, volumes for the year as a whole were kept stable thanks to strong and flexible product management and the addition of numerous new customers, according to the company. Despite a slight overall decline in volumes, the Hellmann Group was able to increase annual revenue by 4.4%, to €2.5bn in 2020 and achieve an increased EBIT margin of 2.9% on the basis of cost management and the implementation of more efficient corporate structures. Cash flow increased significantly last year, so that the Group is net debt-free and thus on solid financial footing, according to Hellmann.
The positive trend reportedly continued in the current fiscal year 2021 across all products, with the Group’s key figures for the first quarter of 2021 growing above the previous year. Air and sea freight recorded significant volume growth due to increased market demand. The contract logistics segment benefitted from the implementation of new customer business and is further boosted by the ongoing increase in the e-commerce sector. Road & Rail is also developing positively on the basis of sustained volume and demand growth for land transports coupled with high demand for rail transportation between Asia and Europe.
Foundation for further sustainable growth
In 2019 the company’s management charted the course for sustainable growth by introducing a new, globally uniform organisational structure and implementing a comprehensive digitalisation strategy, aiming to enable significant efficiency gains. At the same time, the realignment of Hellmann’s global network and the establishment of an international management team allowed the company to strengthen its market position across all product areas. The current focus is to increase the level of digitalisation including the introduction of new transport management systems (TMS), to expand the operating business and generate further growth. Hellmann is also seeking to acquire operational and strategically forward-looking investments, e.g. in the areas of digitalisation and specialised niche products.
“The year 2020 was a stress test for Hellmann, but we achieved our goal of generating profitable growth despite the massive challenges. The crisis did not slow us down, but rather highlighted our strengths: our flexibility, but also the enormous commitment and motivation of all employees. In the current financial year, we want to deliver on the goals of our growth strategy and gain market share in all products,” said Reiner Heiken, Chief Executive Officer Hellmann Worldwide Logistics.
Source: Hellmann Worldwide Logistics
