The cargo handling and logistics group BLG Logistics closed the past financial year with a significantly improved profit.
Earnings before taxes more than doubled compared to 2023 to € 91.8 million (+€ 55.7 million), while the profit margin (EBT) improved from 4.5% to 7.5%. Group revenue remained stable compared to the previous year at € 1.2 billion.
The Group was able to significantly improve its margins in both container handling and finished vehicle logistics (automobiles). At € 68 million, the container activities bundled in the Eurogate joint venture contributed around four times as much profit as in the previous year. The profit margin in this segment jumped from 6.1% to 20.1%. The strong result was based on a 10% increase in throughput in the Eurogate terminal network as well as on storage fee and reefer revenues due to disruptions in the liner schedules as a result of the crisis in the Red Sea, BLG announced.
In the automotive sector, pre-tax profit rose from € 36 million to € 64.3 million, far exceeding the results from previous years. The margin rose from 5.6% to 9.4%. The financial development ran counter to the handling and transport volumes of finished vehicles in the BLG network, which slumped from 5 million units in 2023 to 4.4 million. CEO Matthias Magnor explained the increase in profitability in the automotive business with increased technical services for imported vehicles, higher storage fees and additional special and spot business.
BLG raises prices in automobile handling
“Our dependence on a few major customers in the automotive industry is a thing of the past,” said the manager. In 2023, BLG began to significantly increase its prices in automobile handling. In order to further improve profit margins and also increase service quality, the company is working intensively on increasing productivity. Magnor cited the creation of relief areas for the Bremerhaven car terminal in Alhorn, Lower Saxony, as an example of this.
The Bremen-based port and logistics group recorded a slump in the contract logistics business (warehousing, order picking). Declining volumes in automotive parts and industrial logistics pushed divisional turnover down by 6% to € 535.6 million. Following a profit of € 9.4 million in the previous year, Contract Logistics delivered a loss of € -2.8 million in 2024.
Magnor and his colleagues on the Executive Board were cautiously optimistic about the outlook for the current year. Despite the onset of the US trade war, there has been “no drop” in goods volumes and ship calls. The Executive Board is particularly confident with regard to the container business. Both Bremerhaven and Wilhelmshaven are expected to see a “significant increase in handling figures” due to increased calls by the Gemini alliance of Maersk and Hapag-Lloyd, explained Executive Board member Michael Blach. (mph)
