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 program and developed a temporary crisis strategy with which we reacted quickly and successfully to the change in economic demand. Despite the global crisis, we were able to maintain our gross profit at the previous year's level and even increase it further in contract logistics. It is very pleasing that we increased our EBIT from EUR 5.2 million to EUR 11.8 million and thus achieved EBIT growth of 127%."

Positive effects from Germany, Asia and Latin America

In the 2020 reporting year, the gross profit generated amounted to EUR 140 million and was therefore on a par with the previous year. The German organization made a particular contribution to this, primarily through the implementation of air freight charters. Business in Asia also developed very positively despite the severely impacted situation caused by COVID-19, as China and Taiwan in particular recovered quickly from the cuts caused by the pandemic. Mexico and our country organizations in South America also contributed to the positive development and increased their results once again 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 the good result."

Growth in contract logistics, challenging times in sea and air freight

In sea freight, the year was characterized by container bottlenecks, 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%. This is less than the market decline. Röhlig has already grown again in the 4th quarter. Global air freight was severely affected by the COVID-19 restrictions and the lockdowns imposed to varying degrees in almost all countries. Gross profit increased by around 1%.

In 2020, Röhlig further expanded its contract logistics presence with additional warehouses in Malaysia and China. Röhlig has 21 warehouses at 10 locations worldwide. The global increase in capacity utilization had a positive effect of 7.5% on gross profit in the Contract Logistics segment. In addition to the above-mentioned locations, the flagship warehouse in Johannesburg, South Africa, reached 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 the requirements of our customers' supply chains and offer tailor-made logistics solutions for the transportation of medical supplies and components for the automotive sector, among other things. As a result, we achieved a record volume of air charter tonnage in 2020."

Outlook

"In the current 2021 financial year, we can adapt even better to the pandemic, we have learned how to behave during the lockdown and are largely aware of the effects. We want to build on the good results from last year and are resuming our Blue Star strategy program, which was interrupted due to the pandemic, with which we are driving our growth and continuing to accelerate the development of new products and digital services for our customers," says Philip W. Herwig.