ZIM posts improved financial results amid increased volumes

ZIM Integrated Shipping Services has released its consolidated financial results for the three and six months ending 30 June 2024.

In the second quarter of the year, ZIM carried 952,000 TEUs, marking an 11% increase compared to the same period last year, while the average freight rate per TEU rose to US$1,674, reflecting a 40% year-over-year growth.

“We are pleased with our strong second quarter performance, highlighted by outstanding strategic execution that led to a record high carried volume, representing 11% growth year-over-year,” stated Eli Glickman, CEO and President of ZIM.

“The steps we have taken to upscale our capacity and enhance our cost structure continued to drive strong financial results,” he added.

As of 30 June 2024, the Israeli shipping company reported a net debt of US$3.25 billion, up from US$2.31 billion on 31 December 2023, with the net leverage ratio improving to 2.0x from 2.2x over the same period.

Furthermore, ZIM announced revenues of US$1.93 billion, with a net income of US$373 million. Additionally, the ocean carrier’s adjusted EBITDA reached US$766 million, while adjusted EBIT was US$488 million. Meanwhile, the adjusted EBITDA and adjusted EBIT margins were 40% and 25%, respectively.

“We generated a net income of US$373 million, as we drew on our differentiated strategy and agility while capitalizing on sustained market strength,” commented Glickman.

After the first half results, ZIM raised its full-year 2024 guidance, now expecting adjusted EBITDA between US$2.6 billion and US$3 billion and adjusted EBIT between US$1.45 billion and US$1.85 billion.

It is important to note that ZIM declared a dividend of US$112 million, or US$0.93 per share.

“Aligned with our prioritization of returning capital to shareholders, we declared a dividend of US$0.93 per share, or US$112 million, representing 30% of second-quarter net income,” said ZIM’s boss.