Status Report

Investments and depreciation

 

Property, plant and equipment

The Group continues to operate an asset-light business model and invests only into strategically important locations with high demand for state of the art or industry-specific logistics space.

In 2023, the Group invested a total of CHF 306 million (2022: CHF 239 million) in fixed assets. Investments in properties and buildings amounted to CHF 50 million (2022: CHF 4 million). CHF 256 million (2022: CHF 235 million) were invested in other fixed assets, operating and office equipment. Depreciation of property, plant, and equipment for the year 2023 amounted to CHF 177 million (2022: CHF 192 million). Refer to note 14 of the consolidated financial statements for further details.

All capital expenditure in 2023 was financed through operational cash flow. 

In 2023, the following major investments were made in properties and buildings:

Location CHF million Centres
Wisconsin, USA 37 Forest conservation project
Buenos Aires, Argentina 11 Office space
Others 2  
Total Group 50  

The allocation of investments in other fixed assets, operating and office equipment by category is as follows:

CHF million 2023 2022
Operating equipment 119 123
Vehicles 15 11
Leasehold improvements 72 44
IT hardware 33 46
Office furniture and equipment 17 11
Total Group 256 235

The allocation by region is as follows:

CHF million 2023 2022
EMEA 178 173
Americas 54 35
Asia-Pacific 24 27
Total Group 256 235

The allocation by business unit is as follows:

CHF million 2023 2022
Sea Logistics 28 25
Air Logistics 36 29
Road Logistics 23 25
Contract Logistics 169 156
Total Group 256 235

Right-of-use assets

A total of CHF 738 million (2022: CHF 606 million) was invested in right-of-use assets. The allocation of investments in right-of-use assets is as follows:

CHF million 2023 2022
Buildings 589 465
Operating equipment 85 101
Vehicles 64 40
Total Group 738 606

The allocation by region is as follows:

CHF million 2023 2022
EMEA 501 425
Americas 176 116
Asia-Pacific 61 65
Total Group 738 606

The allocation by business unit is as follows:

CHF million 2023 2022
Sea Logistics 41 55
Air Logistics 29 30
Road Logistics 57 67
Contract Logistics 611 454
Total Group 738 606

Depreciation of right-of-use assets amounted to CHF 544 million (2022: CHF 511 million). Refer to note 15 of the consolidated financial statements for further details.


Acquisitions

Effective November 14, 2023, the Group acquired 51.0 per cent of the shares of Morgan Cargo, a Johannesburg-based South African leading freight forwarder specialised in air transport and handling perishable goods. During 2022, Morgan Cargo handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts and generated a turnover of more than CHF 140 million in 2022.

On June 26, 2023, Apex management exercised the put options to sell 3.9 per cent of their retained shares to the Group. The options were settled with a fair value of CHF 323 million in the Company’s treasury shares. Upon closing of the transaction, the Group therefore increased its ownership interest by 3.9 per cent and has present access to 71.2 per cent of the shares of Apex. 

For further details, refer to note 28 of the consolidated financial statements.


Agreed upon future transactions

On November 28, 2023, the Group entered into an agreement to acquire 100 per cent of the shares of Farrow Group Inc., a Canada-based customs broker, for a purchase price of CHF 166 million. Farrow’s service is rooted in a 112-year heritage and is supported by 830 employees in 41 locations across Canada and the USA. In 2022, Farrow managed over 1.5 million customs entries. The acquisition of Farrow accelerates the Group’s growth ambitions, expands customer capabilities, and enhances value-added services offering which aligns with Roadmap 2026. The transaction closed on January 31, 2024.