The company continues to expand its footprint in the transport of perishables.
Panalpina, an international freight forwarding and logistics company, recorded a consolidated profit of CHF 19.5 million (U.S. $19.6 million) for the second quarter of 2018, an increase of 10.8 percent year-over-year, according to the company’s latest financial statements.
Net forwarding revenues for the quarter totaled CHF 1.5 billion, up 10.9 percent from the second quarter of 2017.
For the first half of 2018, Panalpina posted a consolidated profit of CHF 36.1 million, up 20.6 percent from the corresponding 2017 period, while net forwarding revenues totaled CHF 2.9 billion, up 10.8 percent.
While air freight volumes for the first six months of 2018 rose 3 percent year-over-year, a discontinued high-volume contract caused ocean freight volumes to fall 3 percent year-over-year.
“For the second half-year, we expect accelerated volume growth for our air and ocean freight activities,” Panalpina CEO Stefan Karlen said. “2017 was a record air freight year though, so the comparison will be tough, and uncertainties in international relationships will increase volatility in the air and ocean freight markets and possibly change trade patterns.”
In addition to posting strong financial results, Panalpina has been rapidly expanding its position in the transport of perishables as it strives to become a global leader in the sector.
On Monday, Panalpina reached a deal to acquire Skyservices, a South African company that specializes in the export of air freight perishables.
Skyservices runs a 2,000-square-meter warehouse inside the O.R. Tambo International Airport in Johannesburg and a 1,700-square-meter warehouse just outside the Cape Town International Airport.
The acquisition is still subject to conditions and both companies agreed to not disclose any financial terms of the deal.
Karlen said, “The majority of the company’s export volumes go to London, Amsterdam and Frankfurt, where we have a strong perishables expertise and can therefore offer end-to-end solutions to customers.
“Our non-perishables cargo into South Africa will continue to be handled by our agent Bidvest Panalpina,” he added.
Panalpina has announced several acquisitions in the perishables arena since formally announcing in April 2017 its goal to become a market leader in perishables transport.
Last month Panalpina announced it would acquire Newport Cargo S.A., an Argentinian perishables specialist that handles about 24,000 tons of air freight exports a year.
Panalpina’s perishables activities originated in Latin America and were then extended to Europe and Africa. Its perishables network now spans 26 countries.
Panalpina’s Q2 profit climbs
