Damco records $3,181.4 million revenue with all products growing volumes well ahead of the market
February 26, 2013
Damco has recorded a 19 percent increase in revenue to US$3,272 million ($AUD 3,181.4 million) compared to 2011, with all products growing volumes well ahead of the market.
Part of the AP Moller-Maersk Group,
the freight forwarder’s gross profit improved 7 percent to US$ 807 million ($AUD 784.6 million).
The company says airfreight tonnage almost doubled, recording a growth over last year of 91 percent.
“The rapid growth in airfreight was partly due to the full year effect of Damco’s acquisition of China-based freight forwarder NTS in August 2011, but even excluding that effect our growth in airfreight was well into double digit percentages,” says CEO Rolf Habben-Jansen.
The company increased ocean freight 6 percent, while supply chain management volumes returned to growth and ended 5 percent higher than last year.
During the half, Damco announced a restructuring of its European operations, which were split in East and West Europe regions.
In addition the company relocatied its global headquarters from Copenhagen, Denmark, to The Hague, The Netherlands, scheduled to be completed in Q1 2013.
Damco also acquired freight forwarder Pacific Network Global Logistics, which it says significantly strengthened its position in Oceania.
Despite this, Habben-Jansen says worsening market conditions as well as implementation costs related to new business and restructuring in Europe caused downward pressure on Damco’s unit margin profitability.
“This had a negative impact on Damco’s performance in 2012,” he says. “EBIT for 2012 was $US 97 million ($AUD 94.3 million).
Habben-Jansen adds he is pleased the company continues to grow and develop in spite of continued difficult market conditions.
“We have made a number of strategic changes and invested a lot in the future – which masks the underlying trading of our business which is better than the pure numbers show,” he says.
“That gives us a lot of confidence going into 2013. It stems from a lot of hard work from everybody across our network.”
In 2012, Damco had a net turnover of USD 3,3 billion ($AUD 3.3 billion), managed more than 2.7 million TEU of ocean freight and supply chain management volumes and air freighted more than 210,000 tonnes.