“These very convincing figures mark a clear record in the history of Panalpina,” commented Chairman Gerhard Fischer, “and are further proof of the success of the Group’s strategy. In a macroeconomic environment generally favorable to the transport and logistics industry, we have again successfully transformed our asset-light business model into attractive services for our highly demanding worldwide customers.”
Monika Ribar, Chief Executive Officer, is “especially pleased with the fact that the results have even exceeded our ambitious budget figures. Profitability has substantially improved and top-line growth was solid. We look back on an excellent year in which the dedicated performance of our employees in all regions has further strengthened Panalpina’s position as one of the global leaders in the industry.”
|in million CHF||2006||2005||+ / -|
|Net forwarding revenue||7,735||6,949||11.30%|
|Contribution margin (gross profit)||1,591||1,408||13.00%|
|Number of employees||14,304||13,583||721|
|Dividend per share in CHF (gross)||3.00 *||2||50.00%|
* Proposal to the Annual General Meeting
Compared to 2005, net forwarding revenue steadily grew across all regions, increasing by 12.4% in Europe / Africa / Middle East / CIS, by 15.6% in Asia / Pacific, by 10.6% in North America and by 1.2% in Central and South America. All regions contributed to the overall 13.0% increase in gross profit and have substantially improved their profitability. Particularly pleasing were the US operations, which performed above the break-even target. Panalpina’s reported Ebitda of CHF 313 million includes net non-recurring gains of CHF 13.7 million.
Panalpina increased transported tonnages and volumes in both air freight (+10.5%) and ocean freight (+17.4%) by largely exceeding the respective market growth rates, thus further raising its market share. In ocean freight, the Group transported more than one million TEU for the first time ever. Net forwarding revenue grew by 8.9% in air freight, by 17.8% in ocean freight and by 4.7% in supply chain management, Panalpina’s third core activity, which covers the continued strong customer demand for logistics solutions.
Panalpina was able to extend existing contracts and gain new business in all industry verticals which it defines as strategically important. These are the automotive, the healthcare, the retail and fashion as well as the hi-tech sectors, all of which are highly globalized and have huge outsourcing potentials. A further excellent performance was achieved in the global oil and gas sector, where Panalpina clearly defended its position as the world market leader for dedicated logistics services.
Net operating cash flow improved 70% to CHF 241 million (from 142 million one year ago). This remarkable result was achieved through the better overall result and improved net working capital that contributed by 19 million. Free cash flow has been CHF 186 million or 54% higher than in 2005.
In view of the excellent result for the business year 2006, the Board of Directors of Panalpina World Transport (Holding) Ltd. has decided to propose to the Annual General Meeting, to be held on 15 May 2007, that a dividend of CHF 3.00 (gross) per share be paid, representing a payout ratio in excess of 40%.
Solid global economic growth, continuing globalization and increasing supply chain complexity are underpinning the forecasts for a further growing demand for freight transport and logistics services on a worldwide scale. The strong momentum experienced in the first months of the current year confirms Panalpina’s positive outlook for 2007.