De Xun Group in the first half of 2023 challenging market environment achieved solid results.
the first half of 2023, Dexun Group achieved net operating income of 12.72 billion Swiss francs, down 38.3 per cent from the same period last year; gross profit reached 4.65 billion Swiss francs, down 21.2 per cent from the same period last year; earnings before interest and tax (EBIT) was 1.14 billion Swiss francs, down 48.3 per cent from the same period last year; profit for the current period was 0.86 billion Swiss francs, down 47.2 per cent from the same period last year. The group's conversion rate remains at 24% high.
Stefan Paul, CEO of Dexun Group, said: "The Dexun Group has coped well with the particular economic shift brought about by the epidemic. In the weak economic environment, marine and contract logistics gained market share and maintained stable earnings. In contrast, the volume of air logistics fell at roughly the same level as the market. Although our ongoing cost control efforts became more visible in the second quarter of 2023, our strategic course has not changed, focusing on high-quality logistics services and extraordinary customer orientation."
marine logistics
the first half of 2023, maritime logistics achieved net revenue of 4.86 billion Swiss francs, down 50.8 per cent year-on-year, while EBIT was 0.64 billion Swiss francs, down 47.1 per cent year-on-year. The conversion remained high at 49%.
container volume for the first half of 2023 was 2.1 million TEU. The overall market share of Dexun Group Marine Logistics fell by about 5%.
the spring of 2023, De Xun and Volvo Cars will establish a partnership to use 5,500 tons of sustainable biofuels in marine transportation. Going forward, the Swedish automaker's transportation will significantly reduce fuel emissions.
Air freight logistics
In the first half of 2023, Air Logistics achieved net revenue of 3.52 billion Swiss francs, down 44.4 per cent year-on-year, while EBIT was 0.29 billion Swiss francs, down 64.5 per cent year-on-year.
The pace of decline in volumes slowed in the second quarter. In the first half of 2023, the air cargo volume was 957000 tons, and the conversion rate was 31%.
June 2023, De Xun Group signed an agreement to acquire Morgan Cargo, a well-known freight forwarder in South Africa, the United Kingdom and Kenya. Morgan Cargo focuses on niche markets, providing comprehensive logistics solutions for perishable, general and animal goods. The company was founded in 1993 and employs more than 500 people in South Africa. Morgan Cargo started as a specialist perishable goods agency and has now diversified its services and operations to cover a wide range of other goods across a wide range of different industries. In 2022, Morgan Cargo transported more than 40000 tons of cargo by air and more than 20000 TEU by sea.
land transportation logistics
the first half of 2023, land logistics achieved net revenue of 1.87 billion Swiss francs, down 7.9 per cent year-on-year, while earnings before interest and tax were 93 million Swiss francs, up 16.2 per cent year-on-year. Compared with the same period last year, the number of orders processed was about 12 million, and the network utilization rate remained at a high level.
An important factor driving the significant increase in EBIT in the first half of 2023 was the continued implementation of RoadLOG, the company's proprietary transportation management system (TMS for land logistics ).
Contract Logistics
In the first half of 2023, Contract Logistics delivered a strong performance in the first half of 2023, with net turnover of CHF 2.47 billion, up 2.8 per cent, and EBIT of CHF 0.11 billion, up 35.8 per cent.
contract logistics gained market share, especially in healthcare and e-commerce in North America. The utilization rate of the warehouse operation facilities of the Dexun Group remains at a very high level.
Dr. Joerg Wolle, Chairman of the Board of Directors of Dexun Group, said: "In the first half of 2023, the financial performance of the Dexun Group was significantly better than comparable data prior to the outbreak of the New Crown epidemic, and the Group performed well in the new environment. In the next few years, the 2026 roadmap will continue to be a key driving force for the development of Germany's strategy. Launched in March 2023, the program has seen initial success both internally and externally. Our focus remains on providing high-margin services and developing market potential in Asia, Africa and the Middle East."
Source: Shipping Industry