Logwin Increases Revenue and Results Again and Adjusts Forecast

The Logwin Group increases both revenue and results in the first nine months of 2021. Due to this positive development, the logistics service provider raises its annual forecast. At the same time, however, disruptions in global supply chains dampen the mood. These could also lead to declines in orders in contract logistics and freight.

(Grevenmacher/Lux) The global economy continues to expand noticeably in the first nine months of 2021. However, the upswing in industrial production is increasingly being hampered by capacity and supply bottlenecks in production processes and ongoing disruptions in global supply chains. Leading economic research institutes continue to expect an increase in world production for the year 2021. Risks to economic development primarily arise from the ongoing uncertainty regarding the development of the Covid-19 pandemic and from disruptions in international supply chains.

The markets in transport logistics are characterized, especially in air and sea freight, by capacity bottlenecks and highly fluctuating, exceptionally high freight rates. In national transport networks, the effects of measures to combat the Covid-19 pandemic and a cautious recovery in demand for logistics services are partially burdensome.

Revenue

The revenue of the Logwin Group increased by 53.2% to €1,260.9 million (2020: €822.9 million) in the first nine months of 2021. In addition to significantly increased freight rates, strongly growing volumes in sea and air freight in the Air + Ocean business segment also contributed to a substantial revenue increase from €574.4 million to €1,019.2 million. The Solutions business segment remained essentially at the previous year’s level of €248.4 million, with a revenue of €242.2 million, mainly due to the effects of the Corona pandemic on national network activities in Germany as well as individual site sales and closures.

Operating Result (EBITA)

In the first nine months of 2021, the Logwin Group achieved an operating result of €67.5 million, significantly exceeding the previous year’s result by €31.6 million. The Air + Ocean business segment clearly surpassed the previous year’s level due to significantly increased revenues while simultaneously increasing the EBITA margin. The result of the Solutions business segment was slightly above the previous year’s level after three quarters of 2021. The effects of measures to combat the Covid-19 pandemic on national transport network activities and the partially cautious recovery in demand throughout the reporting period continued to be burdensome.

Net Income

The net income of the Logwin Group amounted to €52.4 million in the first nine months of 2021, significantly above the previous year’s level (2020: €25.1 million). In addition to the increased operating result, a decline in the tax rate also contributed to the increase in results.

Free Cash Flow

The free cash flow of the Logwin Group was significantly above the comparative figure of the third quarter of 2020 of -€11.7 million, amounting to €30.4 million due to the positive development of the operating result and the reduced increase in seasonal working capital compared to the previous year.

Risks and Forecast Adjustment Report

Disruptions in global supply chains and their effects on customers in contract logistics lead to additional risks regarding the demand for logistics services and the supply of capacities to provide them. Compared to the information in the annual financial report 2020, the risk situation for the Logwin Group has not changed significantly otherwise.

Due to the significantly more positive revenue and earnings development in the third quarter of 2021 compared to the forecast report in the interim report as of June 30, 2021, the Logwin Group now expects a significant revenue growth to around €1.7 billion for the entire year 2021. The extent of the revenue increase still fundamentally depends on the further development of freight rates and volumes. The operating result (EBITA) in the Logwin Group is also expected to increase significantly compared to the previous year based on current developments and is likely to be in the range of €80 million. The net income is also expected to rise significantly based on the anticipated operating result development (EBITA).

This adjusted forecast includes a revision of the earnings expectation (EBITA) for the Solutions business segment. Due to unexpected revenue declines in parts of the logistics activities, revenue and the operating result (EBITA) in the Solutions business segment for the fiscal year 2021 are expected to be below the previous year’s level, taking into account possible one-time effects. The forecast remains subject to a significantly increased uncertainty due to the special development of the market and competitive environment and the possible effects of measures for global pandemic control.

The key performance indicators (KPIs) presented are part of the metric system used in the Logwin Group and are explained and defined in the section “Financial Corporate Management” in the Group Management Report in the annual financial report 2020 according to the guidelines for alternative performance measures of the European Securities and Markets Authority (ESMA) dated October 5, 2015.

Photo: © Logwin