Eimskipafélag Íslands (EIM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached EUR 220.6m, up 9.2% YoY, driven by Forwarding and strong seasonal activity.

• Net earnings for Q3 were EUR 14.3m, down 13.9% YoY, with a profit margin of 6.5%.

• Liner segment saw its highest volume since Q3 2022, while Forwarding benefited from higher global freight rates.

• EBITDA for Q3 was EUR 32.9m, including a non-recurring item of EUR 2.2m.

• Net earnings for 9M 2024 totaled EUR 22.7m; total equity as of 30 September 2024 was EUR 306.2m.

Financial highlights

• Q3 2024: Revenue EUR 220.6m (+9.2% YoY), EBITDA EUR 32.9m (-4.5% YoY), EBIT EUR 18.7m (-1.1% YoY).

• Q3 2024 net earnings: EUR 14.3m (Q3 2023: EUR 16.6m); 9M 2024 net earnings: EUR 22.7m.

• Expenses rose by EUR 20.2m, mainly due to higher third-party logistics costs and wage inflation.

• Cash flow from operations was EUR 11.8m, down EUR 9.3m YoY, mainly due to working capital changes.

• Equity ratio at 46.7% as of 30 September 2024; cash position at EUR 24.4m.

Outlook and guidance

• Outlook for the remainder of 2024 is promising but marked by global shipping volatility and macroeconomic uncertainty.

• Robust export volumes from Iceland and stable demand in most segments; imports to Iceland strong except for vehicles.

• Trans-Atlantic volumes expected to increase, especially westbound, with higher prices than last year.

• Forwarding volumes to be in line with Q3 but lower than Q4 2023; global freight rates remain elevated but are trending down.

• Company remains focused on cost control and sustainable growth.