- Sales increased by 8.1 percent
- Dividend of EUR 0.45 per share
- BLG AutoTerminal Bremerhaven back in positive figure
“In 2023, BLG LOGISTICS proved to be a strong and reliable logistics partner for trade and industry in an economically and politically highly erratic environment. The shortage of skilled labor, climate change, inflation, the situations in Ukraine and the Middle East, attacks on trade vessels by Houthi rebels – the list of conflicts, crises and catastrophes is long and constantly changing. Despite all these obstacles, we were able to close the financial year 2023 much better than expected. 2023 showed that reliability and adaptability remain the decisive factors for success even in difficult times.”
This was the positive conclusion of the CEO of BLG, Frank Dreeke, in his report on the 2023 business year to the 144th general shareholders meeting of BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877.
Sales increased by 8.1 percent
The BLG Group posted sales of EUR 1.21 billion in financial year 2023. That was 8.1 percent more than in the previous year. “Considering the many crises and challenges we faced, that is a more than respectable performance. This means that we beat the downward trend caused by the coronavirus crisis for the second time in succession. All our areas in the company and every colleague contributed to this,” emphasized Frank Dreeke in his address.
The earnings before tax (EBT) of the Group for 2023 totaled EUR 36.1 million. This was 35.2 percent below the previous year (EUR 55.7 million). The Group EBT therefore decreased by EUR 19.6 million. The EBT margin was three percent. In the previous year, the figure was five percent.
Diverse development in the divisions
The AUTOMOBILE division was able to increase sales and profit dramatically. Sales grew by EUR 62.1 million to EUR 641.9 million. The sales growth is mainly due to higher revenues in the areas of transport and storage. In the entire AUTOMOBILE network, the division handled, transported or technically processed some 5 million vehicles last year. In the reporting year, the BLG AutoTerminal Bremerhaven returned to positive figures, achieving a significant improvement in its result. This was due especially to the restructuring and transformation processes coming into effect as well as newly agreed contracts with a number of key accounts.
The CONTRACT division also developed positively. Sales revenue increased by EUR 20.9 million to EUR 569.1 million. In the continuing multi-crisis situation, the division again succeeded in meeting its targets in 2023. Some individual locations suffered significant volume reductions, but higher volumes and productivity plus additional business at other locations compensated for this. Other factors with a positive effect were falling inflation rates and especially lower energy prices in the course of the year.
The CONTAINER division was impacted by weak demand in the economy and closed the year with a clearly positive result, but financially down on the previous year. Over the reporting year, in total noticeably fewer containers than expected were handled at the inland terminals of the EUROGATE Group. The handling volume decreased from 11.2 million TEU by 5.1 percent, and declined at the German terminals overall by 10.5 percent. Storage earnings, which significantly increased in the previous year due to disrupted schedules of the shipping lines, also decreased earlier than expected. Due to a decline in handling volumes by the fully consolidated companies in Germany, EUROGATE posted a significant decrease in sales by some 13 percent to EUR 301.9 million (BLG share).
“We deliver.”
Summing up the developments in the three divisions, Frank Dreeke said: “The result for 2023 exceeded our expectations and is proof of our reliability, performance capability and our entrepreneurial strength in a dynamic and challenging business environment.”
“Delivering” is the title of this year's Annual Report. “Short, simple and to the point. Delivering is what we do every day. We move goods, raw materials and products of all kinds. From the smallest screws for global automobile production to core assemblies for the Ariane 6, due to be launched into space in the near future. We deliver. Every day with high performance, expertise and passion,” said BLG CEO Frank Dreeke in his address.
That would not be possible without the employees of the BLG Group, he stressed. BLG LOGISTICS provides approx. 20,000 jobs around the globe. “To recruit, train and retain employees, we aim to permanently raise awareness on the employment market of our company as an attractive employer. The basis for this are our corporate values and corporate culture,” said Frank Dreeke.
Prospects for 2024
The BLG CEO admitted to some concerns about the future: “The Middle East conflict and the continuing war in Ukraine could exacerbate the situation further. We continue to operate in a volatile market environment. To meet these challenges, we are investing heavily in flexibility, digitalization/AI, automation and sustainability. BLG is a well-positioned, robust, future-oriented and competitive company.”
Following the report and questions from the shareholders, the Annual General Meeting approved the actions of the Supervisory Board and the Board of Management with a large majority, and also approved the payment of a dividend of EUR 0.45 for the financial year 2023.
