Source: BLG Logistics, 2020-04-29
At its first digital Annual Report Press Conference on 29 April 2020, the Board of Management of BLG Logistics group AG & Co. KG presented the results of the last business year. The CEO, Frank Dreeke, drew a positive conclusion: "In business year 2019, BLG Logistics generated a solid profit. Altogether, we exceeded our goal of maintaining sales revenue at a constant level.” Backed up by this robust and solid financial starting point, the company would also weather the extremely difficult year of 2020, he said.
For 2019, the BLG Group posted a total sales figure of €1bn, 158.6m. That is an increase of €17.3m or 1.5% on 2018. At €37.5m, earnings before tax (EBT) remain at the previous year's level. The EBT margin, at 3.2%, is just short of the previous year's level (3.3%).
In 2019, BLG Logistics again consolidated its position as one of Europe's leading automobile logistics companies and also expanded its network in Europe. A total of 6.3 million vehicles were handled, transported, or technically processed in 2019. A very good sales increase of more than €50m also generated a significantly improved profit. Sales revenue in the AUTOMOBILE division amounted to €603.7m, which is an increase of 9.1% on 2018. Compared to the previous year, EBT increased by more than 24%, reaching €19.3m.
Despite a slight downturn in sales, the CONTRACT division posted a stable result. At the close of the business year, sales amounted to €563.9m. That is a small reduction compared to 2018 (€599.2m). At the same time, the company increased earnings before tax (EBT) by 2.5% to €7.4m. The EBT margin also increased by 8.3% to 1.3%. With new orders and locations in Waiblingen, Meerane, Brandenburg, Ochtrup, Schlüchtern, and Geiselwind, contract logistics is ideally set up for the future.
The CONTAINER Division of the BLG Group is represented by half of the shares in EUROGATE. In business year 2019, the European terminal operator group generated an annual net profit of €45.5m (2018: €67.3m). The slightly lower overall handling volume in Germany resulted in a sales revenue of €564.6m, which was also below the previous year's value (2018: 604m). Generally, the business year was marked by the effects of the consolidation wave in shipping line alliances during previous years and the resulting changes in networks.
Looking at the current business year of 2020, the CEO stated: „At the moment, nobody can say with certainty how drastic the impacts of the coronavirus crisis will be. Economic research institutes predict a fall in GDP of 9.8%in the second quarter. That would be a crash double the scale of that in the 2009 global financial crisis. The effects of the coronavirus crisis on volume, sales, and profit will be massive and severe in all areas. However, the figures for 2019 show that we have a robust and solid basis which will allow us to ride out the storm.“
In his speech, Frank Dreeke stressed that BLG LOGISTICS remains committed to its strategic goals such as digitalization and sustainability. The seaport and logistics service provider aims to reduce its absolute CO2 emissions by 30% by 2030. The Sustainability Report describes what actions BLG Logistics has already taken to achieve its sustainability goals. With 100-day projects, 6-month sprints, and basic research projects over several years, the seaport and logistics service provider is working on the implementation of artificial intelligence, autonomous systems, and digital platforms.