HHLA aims for further growth in 2019

HHLA aims for further growth in 2019
Angela Titzrath, chairwoman of HHLA's executive board

Strong 2018 financial end-of-year results, boosted by container throughput and the integration of Estonia’s largest terminal operator, have given Hamburger Hafen und Logistik AG (HHLA) a foundation for further growth in 2019.

HHLA’s container throughput went up slightly by 1.9% to 7,336,000 teu, despite a more subdued market environment in the second half of the year.

The company’s forecast for 2019 sees this steady growth continuing as a result of the takeover of North America services and the first full-year consolidation of throughput volumes of the container terminal HHLA TK Estonia AS.

Angela Titzrath, chairwoman of HHLA’s executive board, said: “A solid foundation is important in a world that is changing ever faster. But on its own, it is not enough to generate further growth.

“We will therefore continue to decisively and consistently implement our strategy of strengthening the creative power and future viability of HHLA.”

HHLA’s strategy involves continuous investment in the quality and profitability of its core business as well as the identification and development of new growth areas, particularly in the digital space.

The group expects a slight overall increase in container throughput in 2019 as well as an increase for container transport which, at a group level, should lead to a small increase in revenue.

Revenue in 2018 increased 3.1% in 2018 to approximately €1.3bn (US$1.5bn) and Earnings Before Tax Depreciation and Amortisation (EBITDA) was up 7.7% to €318.5m (US$358.6m) as prior-year expenses for organisational restructuring no longer applied.

The Port Logistics subgroup generated revenue of €1.26bn (US$1.41bn) and an EBITDA of €297.8m (US$335m) and earnings for 2019 are expected to be shaped largely by the container and intermodal segments.

Titzrath added: “The aim is always to offer our customers the best possible solution for the quick, safe and efficient transport of their goods … we therefore remain committed to our ambitious growth targets.”