Röhlig Logistics doubles EBIT - successful growth even in times of the Corona pandemic
Bremen, 31 March 2021 - Despite the COVID 19 pandemic, the owner-managed logistics company Röhlig can look back on a successful financial year. Philip W. Herwig, Managing Partner at Röhlig Logistics explains: "When it became clear to us at the beginning of 2020 that this year would be a major challenge due to its unpredictability, we paused our ongoing strategy programme and developed a temporary crisis strategy with which we responded quickly and successfully to the change in economic demand. Thus, despite the global crisis, we were able to maintain our gross profit at the previous year's level and even further expand it in contract logistics. It is very pleasing that we increased our EBIT from 5.2 million euros to 11.8 million euros and thus achieved an EBIT growth of 127 percent."
Positive effects from Germany, Asia and Latin America
In the reporting year 2020, the gross profit generated was 140 million euros and thus at the previous year's level. The Germany organisation made a notable contribution to this, mainly through the implementation of air freight charters. The Asian business also developed very positively despite the severely affected situation caused by COVID-19, as China and Taiwan in particular recovered quickly from the cuts caused by the pandemic. Furthermore, Mexico and our country organisations in South America contributed to the positive development and once again increased their results compared to 2019. Dr Robert Gutsche, Chief Financial Officer at Röhlig, explains: "We were very successful in Germany, Asia and Latin America. And in the pandemic year, our strict cost management in all cost items also contributed to this good result."
Growth in contract logistics, challenging times in sea and air freight
In sea freight, the year was characterised by equipment shortages, rising freight rates, dramatically increasing demand in the second half of the year and significant port and terminal congestion. Compared to 2019, Röhlig's gross profit in sea freight fell by around 2 percent. This is, however, less than the average market decline. Röhlig has already grown again in the 4th quarter. Global air freight was hit hard due to the COVID 19 restrictions and the varying degrees with which lockdowns were imposed in nearly every country. Gross profit increased by around 1 percent. In 2020, Röhlig continued to expand its contract logistics presence with additional warehouses in Malaysia and China. Röhlig has 21 warehouses in 10 locations globally. The increased capacity utilisation worldwide positively affected gross profit in the contract logistics division by 7.5 percent. In addition to the locations mentioned above, the flagship warehouse in Johannesburg, South Africa, achieved maximum capacity. Hylton Gray, Chief Executive Officer Sea Freight, Air Freight, Contract Logistics & Sales at Röhlig, explains: "Since the outbreak of the pandemic, we have been able to meet our customers' supply chain requirements and provide tailor-made logistics solutions for the transport of medical supplies and components for the automotive sector, among others. We have thus achieved a record volume of air charter tonnage in 2020."
"In the current 2021 financial year, we will be able to adapt even better to the pandemic; the behaviour in lockdown has been learned and the effects are largely known. We want to build on the good results from last year and are resuming our Blue Star strategy programme, which was interrupted due to the pandemic, to drive our growth and further push the development of new products and digital services for our customers," says Philip W. Herwig.