Status Report

Business units

 

The main contributor to the Group’s result are the business units Sea and Air Logistics. 


Sea Logistics

Sea Logistics volumes decreased by 1.1 per cent to 4,338,000 TEUs. Besides the Full-Container-Load (FCL) business, specialised services for temperature-controlled cargo in reefer containers, pharma, e-commerce, and project business have significantly contributed to the result. In an uncertain and volatile market environment, the Group maintained its global leading position in Sea Logistics. Despite the challenges in supply chain reliability at the beginning of the year and the change into a situation of overcapacity at its end, the high service intensity for all shipments persisted. Managing towards a favourable service mix and operational efficiency under the difficult circumstances enabled to maintain margins at a lower but stable level. In 2023, the absolute amount of EBIT decreased by 49.8 per cent compared to the previous year, while the ratio of EBIT to gross profit (conversion rate) decreased to 43.8 per cent (2022: 58.1 per cent).

It remains the Group’s target putting yield optimisation at the forefront of the decision making. The Group is committed to develop its sustainability solutions towards a low-carbon future. With its commitment to provide customers with access to reliable, high standard low-carbon maritime fuels and the goal of a leading market position in emission transparency, the Group adds to its ambition on the Sea Logistics profitability and continuous efficiency improvements.

Sea Logistics volumes: Market growth ~ –3%

TEUs ’000

Source: quarterly company publications.

Performance Sea Logistics

CHF million 2023 2022 2021
Turnover 9,934 20,608 15,662
Net turnover 8,601 18,753 13,706
Gross profit 2,320 3,479 2,754
EBITDA 1,042 2,062 1,561
EBIT
EBIT in per cent of gross profit (conversion rate)
1,015
43.8
2,021
58.1
1,529
55.5
Number of operating staff 12,130 12,855 11,806
TEUs '000 4,338 4,386 4,613

Air Logistics

Despite the challenging market conditions, Air Logistics maintained its number one market position in the global air freight market in 2023, while recording a lower volume by 11.2 per cent, totalling 1,983,000 tons. EBIT to gross profit ratio (conversion rate) decreased to 31.3 per cent in 2023 (2022: 47.5 per cent). EBIT reduced by 60.6 per cent compared to the previous year.

In 2023, the market was characterised by an ongoing decrease in demand for air transport services until the end of the third quarter. At the end of the year it has turned towards a situation of strong demand for export capacities out of China due to the surge of e-commerce activities. This has led to sub-sequent pressure on the yields.

To support customers transitioning to a low-carbon business model, the Group has expanded its cooperation with leading carriers to further promote and deploy the use of sustainable aviation fuel (SAF).
 

Air Logistics volumes: Market growth ~ –11%

Tons ’000

Source: quarterly company publications.

Performance Air Logistics

CHF million 2023 2022 2021
Turnover 7,465 12,358 11,480
Net turnover 6,937 11,715 10,810
Gross profit 1,774 2,965 2,556
EBITDA 624 1,489 1,230
EBIT
EBIT in per cent of gross profit (conversion rate)
555
31.3
1,409
47.5
1,167
45.7
Number of operating staff 10,767 11,056 10,793
Tons '000 1,983 2,232 2,220

Road Logistics

Road Logistics had a decrease in net turnover by 11.4 per cent in 2023, in line with the weakened demand for land transport activities in Europe. Through continuous optimisation of the customer service portfolio, the key performance indicator EBITDA to net turnover margin improved to 5.4 per cent from previous year’s 5.2 per cent. EBIT decreased to CHF 133 million (2022: CHF 146 million).

With the focus on operational performance even in volatile markets and the expansion of services to industry-specific solutions, Road Logistics continues its contribution to the success of the Group’s integrated logistics offering.

The Group is committed to decarbonising its own truck fleet in order to achieve a 60 per cent representation of low-emission vehicles by 2030. This involves investing heavily in Battery Electric Vehicles (BEVs) and complement with Fuel Cell Electric trucks (FCEV) where it makes sense.

 

Performance Road Logistics

CHF million 2023 2022 2021
Turnover 4,087 4,594 4,390
Net turnover 3,541 3,997 3,689
Gross profit 1,288 1,334 1,253
EBITDA 191 207 157
EBIT
EBIT in per cent of gross profit (conversion rate)
133
10.3
146
10.9
94
7.5
Number of operating staff 9,979 9,806 9,723

Contract Logistics

In 2023, with more than 150 new logistics projects for customers implemented, Contract Logistics continuously increases its contribution to the Group’s results.

The focus on specialised end-to-end solutions for industries such as high-tech, consumer goods, pharmaceuticals, healthcare, and e-commerce fulfilment led to new customer gains.

The net turnover (net of currency impact) decreased by 3.3 per cent compared to 2022 and the business was able to gain market share in pharma & healthcare services and in e-commerce fulfilment. The EBITDA to net turnover margin was 17.2 per cent versus 15.7 per cent in 2022.

The Group has achieved 100 per cent renewable electricity for all Contract Logistics sites in 2023 and continues to increase production of clean energy on-site with solar panels.

 

Performance Contract Logistics

CHF million 2023 2022 2021
Turnover 5,163 5,474 5,167
Net turnover 4,770 4,933 4,596
Gross profit 3,405 3,331 3,333
EBITDA 821 774 731
EBIT
EBIT in per cent of gross profit (conversion rate)
200
5.9
187
5.6
156
4.7
Number of operating staff 35,959 34,529 34,309
Warehousing and logistics space in million sqm 10.7 10.3 10.2
Idle space in million sqm 0.4 0.1 0.3
Idle space in per cent 3.7 1.0 2.7