Hamburger Hafen und Logistik AG (HHLA) faced significant financial hurdles in the 2023 financial year, with group revenue taking an 8.3 percent hit, resulting in a drop to €1,447 million from the previous year's €1,578 million, according to the company's release.
The company, a key player in logistics and container handling, observed a decline in both container throughput and transport volumes, mirroring the broader impacts of global economic strains. Container handling saw a reduction of 7.5 percent to 5,917 thousand Twenty-Foot Equivalent Units (TEU), with Hamburg's container terminals specifically reporting a 6.3 percent decrease. Container transport wasn't spared either, experiencing a 5.4 percent decrease to 1,602 thousand TEU.
The Port Logistics subgroup, a significant component of HHLA's operations, also faced setbacks, with revenue falling 8.6 percent to €1,409 million, and the operating result (EBIT) plunging by 53.9 percent to €93 million. This considerable decline in profitability was attributed to decreases in storage fees and the impact of EU sanctions on Russia, which led to a loss of feeder traffic and reduced cargo volumes at the Container Terminal Odessa.
Conversely, the Real Estate subgroup managed a slight increase in revenue, going up by 5.3 percent to €46 million. However, this subgroup too witnessed a decline in its operating result (EBIT) by 12.5 percent to €16 million, primarily due to increased amortization, depreciation, and maintenance expenses.