Development in the first half of 2024
- Overall challenging market environment with declining freight rates.
- Operating profit figures remain well above the pre-Covid-19 level.
- Extensive measures to improve efficiency and expand digitalization.
DB Schenker | H1 | Change | ||
2024 | 2023 | absolute | % | |
Land transport shipments (million) | 54.1 | 50.5 | +3.6 | +7.1 |
Air freight volume (export) (thousand t) | 576.7 | 570.8 | +5.9 | +1.0 |
Ocean freight volume (export) (thousand TEU) | 896.1 | 883.1 | +13.0 | +1.5 |
Total revenues (€ million) | 9,415 | 10,080 | –665 | –6.6 |
External revenues (€ million) | 9,406 | 10,067 | –661 | –66. |
Gross profit margin (%) | 40.1 | 39.6 | +0.5 | – |
EBITDA adjusted (€ million) | 908 | 1,011 | –103 | –10.2 |
EBIT adjusted (€ million) | 520 | 626 | –106 | –16.9 |
EBIT margin (adjusted) (%) | 5.5 | 6.2 | –0.7 | – |
Gross capital expenditures (€ million) | 250 | 324 | –74 | –22.8 |
Employees as of Jun 30 (FTE) | 70,953 | 75,424 | –4,471 | –5.9 |
Average employees (FTE) | 71,478 | 76,047 | –4,569 | –6.0 |
The volume trend was positive across the board, mainly as a result of an overall increase in demand and market growth in the e-commerce business.
Economic development, driven by air freight and land transport, was weaker: operating profit figures declined, but remained well above the pre-Covid-19 level. Accordingly, gross profit also declined (–5.5%). Adjusted for exchange rate effects, the decline was somewhat more pronounced.
The income development was weaker due to freight rate-related decline in revenues:
- Revenues (–6.6%/€ –665 million): Decline due to lower freight rates, particularly in air and ocean freight and land transport, as well as exchange rate effects.
- Other operating income (+40.4%/€ +59 million): Significant increase due to higher income from leasing and the release of provisions, partly offset by higher other operating expenses. Another driver was the release of accrued liabilities.
The expense side was mainly driven by the development of freight rates.
- Cost of materials (–7.3%/€ –453 million): Decline in line with revenues due to lower freight rates and the discontinuation of business involving high cost of materials.
- Personnel expenses (–2.2%/€ –45 million): Decrease due to a lower number of employees as a result of improved productivity in air and ocean freight as well as in overhead.
- Other operating expenses (–0.4%/€ –4 million): Slight decrease mainly due to lower travel expenses and purchased services, which was almost completely offset by increased expenses for compensations for damages.
- Depreciation (+0.8%/€ +3 million): roughly at the same level as in the first half of 2023; adjusted for currency effects, the increase was even lower.
Capital expenditure activity declined due to the completion of major projects. Europe was the main focus of capital expenditures. Adjusted for exchange rate effects, the decline was even more pronounced.
The number of employees decreased compared to June 30, 2023, mainly due to productivity increases.
- Development driven by declining freight rates.
- Quality improvements with positive effects.
- Increase in volume due in particular to additional parcel business in the e-commerce sector.
Land transport line of business | H1 | Change | ||
2024 | 2023 | absolute | % | |
Land transport shipments (million) | 54.1 | 50.5 | +3.6 | +7.1 |
Total revenues (€ million) | 3,917 | 4,103 | –186 | –4.5 |
External revenues (€ million) | 3,912 | 4,094 | –182 | –4.4 |
EBITDA adjusted (€ million) | 235 | 292 | –57 | –19.5 |
EBIT adjusted (€ million) | 62 | 122 | –60 | –49.2 |
Employees as of Jun 30 (FTE) | 23,154 | 24,750 | –1,596 | –6.4 |
In land transport, demand rose, driven by increased volumes in the parcel business as a result of a sharp rise in e-commerce and an increase in direct transport, particularly in Asia. System transports, on the other hand, declined slightly.
Economic development was significantly weaker due to lower revenues and increased depreciation in connection with the integration of USA Truck:
- Income decreased as a result of lower freight rates, particularly in the truckload segment, and the decline in demand for system transports.
- Expenses decreased in line with the revenue development, mainly due to lower freight rates.
The number of employees was lower, mainly due to productivity increases.
- Positive market momentum is leading to a slight increase in demand.
- Air freight: differentiated rate development with declining freight rates aside from the rapidly growing new e-commerce business from China.
- Ocean freight: capacity bottlenecks as a result of the attacks in the Red Sea are leading to rising rates in some cases, with a differentiated development.
Air and ocean freight line of business | H1 | Change | ||
2024 | 2023 | absolute | % | |
Air freight volume (export) (thousand t) | 576.7 | 570.8 | +5.9 | +1.0 |
Ocean freight volume (export) (thousand TEU) | 896.1 | 883.1 | +13.0 | +1.5 |
Total revenues (€ million) | 4,162 | 4,591 | –429 | –9.3 |
External revenues (€ million) | 4,159 | 4,589 | –430 | –9.4 |
EBITDA adjusted (€ million) | 383 | 428 | –45 | –10.5 |
EBIT adjusted (€ million) | 342 | 389 | –47 | –12.1 |
Employees as of Jun 30 (FTE) | 12,503 | 13,666 | –1,163 | –8.5 |
The performance development was positive due to an increase in demand on the market:
- Air freight: Slight increase in line with the non-e-commerce market, with a low share in the rapidly developing low-price new e-commerce market.
- Ocean freight: Increase slightly below the overall market, where growth was primarily achieved with direct customers of shipping companies. Reroutings caused by the attacks in the Red Sea are leading to capacity bottlenecks in the market.
Economic development was significantly weaker: the adjusted operating profit figures fell again slightly after the very strong previous years, but remained well above the pre-Covid-19 level.
- Income declined due to the development of freight rates, which continued the trend of the previous year. In air freight, freight rates outside Asia/Pacific, where DB Schenker’s share is low, remained constant or declined. There were declines in ocean freight as rates rose, but did not reach the level of the first months of 2023, which were characterized by post-Covid-19 effects. The slight increase in volume had a compensating effect. Adjusted for currency effects, the decline was somewhat more pronounced.
- Expenses decreased, particularly in the air freight segment, mainly due to the development of freight rates, but to a lesser extent than revenues. Productivity gains also reduced personnel expenses. Adjusted for exchange rate effects, the decline was somewhat more pronounced.
The number of employees fell as a result of productivity increases.
- Revenue development declined in a difficult market environment.
- Measures to improve productivity and profitability with positive contribution to profits.
Contract logistics line of business | H1 | Change | ||
2024 | 2023 | absolute | % | |
Total revenues (€ million) | 1,335 | 1,386 | –51 | –3.7 |
External revenues (€ million) | 1,335 | 1,385 | –50 | –3.6 |
EBITDA adjusted (€ million) | 256 | 257 | –1 | –0.4 |
EBIT adjusted (€ million) | 117 | 114 | +3 | +2.6 |
Employees as of Jun 30 (FTE) | 21,166 | 22,003 | –837 | –3.8 |
The development in contract logistics followed the overall market thanks to its diversified portfolio that covers different geographic regions and market sectors.
In a challenging market environment, economic development was on a par with the first half of 2023: the adjusted operating profit figures remained almost stable.
- Income decreased due to a decline in volume, particularly in Asia. Effects from the release of provisions had a slight compensating effect.
- Expenses decreased in line with revenues. The main driver was the discontinuation of business transactions involving high material expenses. The decline was partially offset by higher personnel expenses as a result of increased wages.
The number of employees fell slightly, partly as a result of higher productivity.