ZIM Integrated Shipping Services .(ZIM) - 2024 Q4 - Annual Report

Financial Performance - Reported full year revenues of $8.43 billion for 2024, a 63$5.16 billion in 2023[13] - Net income for the full year was $2.15 billion, compared to a net loss of$2.69 billion in 2023[15] - Adjusted EBITDA for the full year was $3.69 billion, a 252$1.05 billion in 2023[16] - The gross profit for the year was $2,784.0 million, compared to a gross loss of$2,207.6 million in 2023, indicating a significant turnaround in profitability[39] - The company achieved a profit for the year of $2,153.8 million, a substantial recovery from a loss of$2,687.9 million in the previous year[40] - Net income for Q4 2024 was $563 million, a significant improvement from a loss of$147 million in Q4 2023[41] - Adjusted EBIT for the year ended December 31, 2024, was $2,549 million, compared to a loss of$422 million in 2023, reflecting a strong recovery[41] Operational Metrics - Achieved 14% volume growth in 2024 with a record carried volume of 982 thousand TEUs in Q4 2024, representing a 25% increase year-over-year[4] - Average freight rate per TEU in Q4 2024 was $1,886, a 71$1,102 in Q4 2023[5] - Adjusted EBITDA margin improved to 45% in Q4 2024, compared to 16% in Q4 2023, showcasing enhanced operational efficiency[42] - The company reported an adjusted EBIT margin of 30% for both Q4 and the full year 2024, a notable recovery from negative margins in 2023[41] Cash Flow and Liquidity - Net cash generated from operating activities was $3.75 billion for the full year of 2024, compared to$1.02 billion in 2023[17] - Cash and cash equivalents at the end of the year stood at $1,314.7 million, an increase from$921.5 million in 2023, demonstrating improved liquidity[40] - Free cash flow for Q4 2024 reached $1,087 million, up from$128 million in Q4 2023, indicating robust cash generation capabilities[44] Debt and Equity - Net leverage ratio improved to 0.8x as of December 31, 2024, down from 2.2x in 2023[18] - The company's total equity attributable to owners rose to $4,036.9 million in 2024, compared to$2,454.7 million in 2023, indicating improved financial health[38] Future Outlook - Full year 2025 outlook includes Adjusted EBITDA guidance of $1.6 billion to$2.2 billion and Adjusted EBIT of $350 million to$950 million[22] - The company plans to continue monitoring geopolitical risks and their potential impact on market conditions, particularly in the Middle East and global shipping industry[29] - Future strategies include potential expansions and capital spending, although specific figures were not disclosed in the call[29] Expenses and Legal Matters - Depreciation and amortization expenses for the year ended December 31, 2024, totaled $1,143 million, down from$1,472 million in 2023, indicating improved asset utilization[42] - Financial expenses decreased to $322 million for the year ended December 31, 2024, compared to$305 million in 2023, reflecting better financial management[42] - Legal contingency expenses for the year ended December 31, 2024, were $24 million, up from$5 million in 2023, highlighting potential legal challenges[41] Dividends - Declared Q4 2024 dividend of approximately $382 million, or$3.17 per share, totaling $961 million for the full year, representing approximately 45$2 million for the year ended December 31, 2024, compared to a capital loss of $20 million in 2023, indicating improved investment performance[41]