Reported Revenues of $2.77
Billion, Net Income of $1.13
Billion, Adjusted EBITDA1 of
$1.53 Billion and Adjusted EBIT of
$1.24 Billion2;
Achieved Adjusted EBITDA and Adjusted EBIT Margins of 55% and 45%,
Respectively
Achieved 12% Volume Growth YOY with Record Carried Volume of
970 Thousand TEUs in Q3 2024
Increased Full Year 2024 Guidance to Adjusted EBITDA of
$3.3 Billion to $3.6 Billion and Adjusted EBIT of $2.15 Billion to $2.45
Billion3
Declared Increased Dividend of ~$440
million, Comprised of a Regular Dividend of ~$340 Million, or 30% of Q3 Net Income, Plus
Special Dividend of ~$100 Million;
Per Share Distribution: $3.65 Per
Share, Reflecting Regular Dividend of $2.81 Per Share Plus Special Dividend of
$0.84 Per Share
HAIFA,
Israel, Nov. 20, 2024 /PRNewswire/ -- ZIM
Integrated Shipping Services Ltd. (NYSE: ZIM), ("ZIM" or the
"Company") a global container liner shipping company, announced
today its consolidated results for the three and nine months ended
September 30, 2024.
Third Quarter 2024 Highlights
- Net income for the third quarter was $1.13 billion (compared to a net loss of
$2.27 billion in the third quarter of
20234), or diluted earnings per share of $9.345 (compared to diluted loss per
share of $18.90 in the third quarter
of 2023).
- Adjusted EBITDA1 for the third quarter was
$1.53 billion, a year-over-year
increase of 626%.
- Operating income (EBIT) for the third quarter was $1.23 billion, compared to operating loss of
$2.28 billion in the third quarter of
2023.
- Adjusted EBIT1 for the third quarter was
$1.24 billion, compared to Adjusted
EBIT loss of $213 million in the
third quarter of 2023.
- Total revenues for the third quarter were $2.77 billion, a year-over-year increase of
117%.
- Carried volume in the third quarter was 970 thousand TEUs,
a year-over-year growth of 12%.
- Average freight rate per TEU in the third quarter was
$2,480, a year-over-year increase of
118%.
- Net debt1 of $2.70
billion as of September 30,
2024, compared to $2.31
billion as of December 31,
2023; net leverage ratio1 of 0.9x as of
September 30, 2024, compared to 2.2x
as of December 31, 2023.
Eli Glickman, ZIM President
& CEO, stated, "ZIM delivered strong third quarter results,
as we again achieved record carried volumes contributing to our
outstanding financial performance. We are pleased to share our
success with our shareholders and declare a special dividend of
~$100 million on top of the regular
30% of quarterly net income dividend payout of ~$340 million, for a total dividend of
~$440 million, or $3.65 per share. Our growing earnings power is
reflective of a strong rate environment, but also a testament to
our diligent execution, upscaling our capacity and enhancing our
cost structure. We've continued to see incremental benefits from
our strategic investment in our operated capacity as new larger,
more modern, cost-effective vessels join our fleet."
Mr. Glickman added, "Also contributing to our strong Q3 was a
decision we made earlier in the year to increase our exposure to
spot volumes in the Transpacific trade. A key differentiator for
ZIM is our commercial agility and we intend to continue to leverage
this strength to capitalize on market opportunities moving forward.
Based on results that have exceeded expectations to date and
improved outlook for the fourth quarter of 2024, we have increased
our full year 2024 guidance and today forecast full year Adjusted
EBITDA between $3.3 billion and
$3.6 billion and Adjusted EBIT
between $2.15 billion and
$2.45 billion."
Mr. Glickman concluded, "We will close out the year with the
final delivery of the remaining four out of 46 newbuild
containerships that we secured, which include 28 LNG-powered
vessels. Entering 2025, we will be operating a fleet that is both
well-equipped to meet emissions reduction targets and well suited
to the trades in which we operate. Supported by our declining unit
costs, we believe ZIM is well positioned to deliver profitable
growth over the long term."
|
Summary of Key
Financial and Operational Results
|
|
Q3-24
|
Q3-23
|
9M-24
|
9M-23
|
|
Carried volume
(K-TEUs)...............................
|
970
|
867
|
2,768
|
2,496
|
|
Average freight rate
($/TEU)...........................
|
2,480
|
1,139
|
1,889
|
1,235
|
|
Total revenues ($ in
millions)..........................
|
2,765
|
1,273
|
6,260
|
3,957
|
|
Operating income (loss)
(EBIT) ($ in millions)
|
1,235
|
(2,276)
|
1,870
|
(2,457)
|
|
Profit (loss) before
income tax ($ in millions).
|
1,133
|
(2,342)
|
1,604
|
(2,678)
|
|
Net income (loss) ($ in
millions)......................
|
1,126
|
(2,270)
|
1,591
|
(2,541)
|
|
Adjusted
EBITDA1 ($ in millions)....................
|
1,531
|
211
|
2,725
|
859
|
|
Adjusted
EBIT1 ($ in
millions).........................
|
1,236
|
(213)
|
1,891
|
(373)
|
|
Net income (loss)
margin (%).........................
|
41
|
(178)
|
25
|
(64)
|
|
Adjusted EBITDA margin
(%).........................
|
55
|
17
|
44
|
22
|
|
Adjusted EBIT margin
(%)..............................
|
45
|
(17)
|
30
|
(9)
|
|
Diluted earnings (loss)
per share ($)..............
|
9.34
|
(18.90)
|
13.17
|
(21.19)
|
|
Net cash generated from
operating activities
($ in
millions)..................................................
|
1,498
|
338
|
2,600
|
858
|
|
Free cash
flow1 ($ in millions)........................
|
1,454
|
328
|
2,470
|
791
|
|
SEP-30-24
|
DEC-31-23
|
|
|
|
Net debt1 ($
in millions)..................................
|
2,698
|
2,309
|
|
|
Financial and Operating Results for the Third Quarter Ended
September 30, 2024
Total revenues were $2.77 billion
for the third quarter of 2024, compared to $1.27 billion for the third quarter of 2023,
mainly driven by the increase in freight rates as well as carried
volume.
ZIM carried 970 thousand TEUs in the third quarter of 2024,
compared to 867 thousand TEUs in the third quarter of 2023. The
average freight rate per TEU was $2,480 for the third quarter of 2024, compared to
$1,139 for the third quarter of
2023.
Operating income (EBIT) for the third quarter of 2024 was
$1.23 billion, compared to operating
loss of $2.28 billion for the third
quarter of 2023. The increase was primarily driven by the
impairment loss recorded in the third quarter of 2023 and the
above-mentioned increase in revenues.
Net income for the third quarter of 2024 was $1.13 billion, compared to net loss of
$2.27 billion for the third quarter
of 2023, also mainly driven by the above-mentioned impairment loss
recorded in the third quarter of 2023 and the increase in
revenues.
Adjusted EBITDA for the third quarter of 2024 was $1.53 billion, compared to $211 million for the third quarter of 2023.
Adjusted EBIT was $1.24 billion for
the third quarter of 2024, compared to Adjusted EBIT loss of
$213 million for the third quarter of
2023. Adjusted EBITDA and Adjusted EBIT margins for the third
quarter of 2024 were 55% and 45%, respectively. This compares to
17% and -17% for the third quarter of 2023, respectively.
Net cash generated from operating activities was $1.50 billion for the third quarter of 2024,
compared to $338 million for the
third quarter of 2023.
Financial and Operating Results for the Nine Months Ended
September 30, 2024
Total revenues were $6.26 billion
for the first nine months of 2024, compared to $3.96 billion for the first nine months of 2023,
primarily driven by both an increase in freight rates as well as
carried volume.
ZIM carried 2,768 thousand TEUs in the first nine months of
2024, compared to 2,496 thousand TEUs in the first nine months of
2023. The average freight rate per TEU was $1,889 for the first nine months of 2024,
compared to $1,235 for the first nine
months of 2023.
Operating income (EBIT) for the first nine months of 2024 was
$1.87 billion, compared to operating
loss of $2.46 billion for the first
nine months of 2023. The increase was primarily driven by the
above-mentioned increase in revenues and the impairment loss
recorded in the third quarter of 2023.
Net income for the first nine months of 2024 was $1.59 billion, compared to net loss of
$2.54 billion for the first nine
months of 2023, also mainly driven by the above-mentioned increase
in revenues and impairment loss recorded in the third quarter of
2023.
Adjusted EBITDA was $2.72 billion
for the first nine months of 2024, compared to $859 million for the first nine months of 2023.
Adjusted EBIT was $1.90 billion for
the first nine months of 2024, compared to Adjusted EBIT loss of
$373 million for the first nine
months of 2023. Adjusted EBITDA and Adjusted EBIT margins for the
first nine months of 2024 were 44% and 30%, respectively. This
compares to 22% and -9% for the first nine months of 2023.
Net cash generated from operating activities was $2.60 billion for the first nine months of 2024,
compared to $858 million for the
first nine months of 2023.
Liquidity, Cash Flows and Capital Allocation
ZIM's total cash position (which includes cash and cash
equivalents and investments in bank deposits and other investment
instruments) increased by $441
million from $2.69 billion as
of December 31, 2023 to $3.13 billion as of September 30, 2024. Capital expenditures totaled
$50 million for the third quarter of
2024, compared to $14 million for the
third quarter of 2023. Net debt position as of September 30, 2024 was $2.70 billion, compared to $2.31 billion, as of December 31, 2023, an increase of $389 million. ZIM's net leverage ratio as of
September 30, 2024, was 0.9x,
compared to 2.2x as of December 31,
2023.
Third Quarter 2024 and Special Dividend
In accordance with the Company's dividend policy, the Company's
Board of Directors declared a regular cash dividend of
approximately $340 million, or
$2.81 per ordinary share, reflecting
approximately 30% of third quarter 2024 net income. In addition,
the Board of Directors declared a special dividend of approximately
$100 million, or $0.84 per share, for a total dividend of
approximately $440 million or
$3.65 per share. The dividend (both
regular and special) will be paid on December 9, 2024, to holders of record of ZIM
ordinary shares as of December 2,
2024.
All future dividends are subject to the discretion of Company's
Board of Directors and to the restrictions provided by Israeli
law.
Use of Non-IFRS Measures in the Company's 2024
Guidance
A reconciliation of the Company's non-IFRS financial measures
included in its full-year 2024 guidance to corresponding IFRS
measures is not available on a forward-looking basis. In
particular, the Company has not reconciled its Adjusted EBITDA and
Adjusted EBIT because the various reconciling items between such
non-IFRS financial measures and the corresponding IFRS measures
cannot be determined without unreasonable effort due to the
uncertainty regarding, and the potential variability of, the future
costs and expenses for which the Company adjusts, the effect of
which may be significant, and all of which are difficult to predict
and are subject to frequent change.
Updated Full-Year 2024 Guidance
The Company increased its guidance for the full year of 2024 and
now expects to generate Adjusted EBITDA between $3.3 billion and $3.6
billion and Adjusted EBIT between $2.15 billion and $2.45
billion. Previously, the Company expected to generate
Adjusted EBITDA between $2.6 billion
and $3.0 billion and Adjusted EBIT
between $1.45 billion and
$1.85 billion.
Conference Call Details
Management will host a conference call and webcast (along with a
slide presentation) to review the results and provide a corporate
update today at 8:00 AM ET.
To access the live conference call by telephone, please dial the
following numbers: United States
(toll free) +1-800-715-9871 or +1-646-307-1963; Israel +972-3-376-1144 or UK/international
+44-20-3481-4247, and reference conference ID: 1972775 or the
conference name. The call (and slide presentation) will be
available via live webcast through ZIM's website, located at the
following link. Following the conclusion of the call, a replay of
the conference call will be available on the Company's website.
About ZIM
Founded in Israel in 1945, ZIM
(NYSE: ZIM) is a leading global container liner shipping company
with established operations in more than 90 countries serving
approximately 33,000 customers in over 300 ports worldwide. ZIM
leverages digital strategies and a commitment to ESG values to
provide customers innovative seaborne transportation and logistics
services and exceptional customer experience. ZIM's differentiated
global-niche strategy, based on agile fleet management and
deployment, covers major trade routes with a focus on select
markets where the company holds competitive advantages. Additional
information about ZIM is available at www.ZIM.com.
Forward-Looking Statements
The following information contains, or may be deemed to contain
forward-looking statements (as defined in the U.S. Private
Securities Litigation Reform Act of 1995). In some cases, you can
identify these statements by forward-looking words such as "may,"
"might," "will," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the
negative of these terms and other comparable terminology. These
forward-looking statements, which are subject to risks,
uncertainties and assumptions about the Company, may include
projections of the Company's future financial results, its
anticipated growth strategies and anticipated trends in its
business. These statements are only predictions based on the
Company's current expectations and projections about future events
or results. There are important factors that could cause the
Company's actual results, level of activity, performance or
achievements to differ materially from the results, level of
activity, performance or achievements expressed or implied by the
forward-looking statements. Factors that could cause such
differences include, but are not limited to: market changes in
freight, bunker, charter and other rates or prices (including as a
result of the continued situation in the Red Sea), supply-demand
fluctuations in the containerized shipping market, new legislation
or regulation affecting the Company's operations, new competition
and changes in the competitive environment, our ability to achieve
cost savings or expense reductions, the outcome of legal
proceedings to which the Company is a party, global, regional
and/or local political instability, including the ongoing war
between Israel and Hamas, the
increased tension between Israel
and Iran and its proxies, in
particular the ongoing hostilities between Israel and Hezbollah, inflation rate
fluctuations, capital markets fluctuations and other risks and
uncertainties detailed from time to time in the Company's filings
with the U.S. Securities and Exchange Commission (SEC), including
under the caption "Risk Factors" in its 2023 Annual Report
filed with the SEC on March 13,
2024.
Although the Company believes the expectations reflected in the
forward-looking statements contained herein are reasonable, it
cannot guarantee future results, level of activity, performance or
achievements. Moreover, neither the Company nor any other person
assumes responsibility for the accuracy and completeness of any of
these forward-looking statements. The Company assumes no duty to
update any of these forward-looking statements after the date
hereof to conform its prior statements to actual results or revised
expectations, except as otherwise required by law.
The Company prepares its financial statements in accordance with
International Financial Reporting Standards (IFRS), as issued by
the International Accounting Standards Board (IASB).
Use of Non-IFRS Financial Measures
The Company presents non-IFRS measures as additional performance
measures as the Company believes that it enables the comparison of
operating performance between periods on a consistent basis. These
measures should not be considered in isolation, or as a substitute
for operating income, any other performance measures, or cash flow
data, which were prepared in accordance with Generally Accepted
Accounting Principles as measures of profitability or liquidity.
Please note that Adjusted EBITDA does not take into account debt
service requirements or other commitments, including capital
expenditures, and therefore, does not necessarily indicate the
amounts that may be available for the Company's use. In addition,
the non-IFRS financial measures presented by the Company may not be
comparable to similarly titled measures reported by other companies
due to differences in the way these measures are calculated.
Adjusted EBITDA is a non-IFRS financial measure
which we define as net income (loss) adjusted to exclude financial
expenses (income), net, income taxes, depreciation and amortization
in order to reach EBITDA, and further adjusted, as applicable, to
exclude impairment of assets, non-cash charter hire expenses,
capital gains (losses) beyond the ordinary course of business and
expenses related to legal contingencies.
Adjusted EBIT is a non-IFRS financial measure which
we define as net income (loss) adjusted to exclude financial
expenses (income), net and income taxes, in order to reach our
results from operating activities, or EBIT, and further adjusted,
as applicable, to exclude impairment of assets, non-cash charter
hire expenses, capital gains (losses) beyond the ordinary course of
business and expenses related to legal contingencies.
Free cash flow is a non-IFRS financial measure which
we define as net cash generated from operating activities minus
capital expenditures, net.
Net debt is a non-IFRS financial measure which we
define as face value of short- and long-term debt, minus cash and
cash equivalents, bank deposits and other investment
instruments. We refer to this measure as net cash when cash
and cash equivalents, bank deposits and other investment
instruments exceed the face value of short- and long-term debt.
Net leverage ratio is a non-IFRS financial measure
which we define as net debt (see above) divided by Adjusted EBITDA
for the last twelve-month period. When our net debt is less than
zero, we report the net leverage ratio as zero.
See the reconciliation of net income to Adjusted EBIT and
Adjusted EBITDA and net cash generated from operating activities to
free cash flow in the tables provided below.
Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com
Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com
Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
media@zim.com
|
CONSOLIDATED BALANCE
SHEET (Unaudited)
|
|
(U.S. dollars in
millions)
|
|
|
September
30
|
December
31
|
|
2024
|
2023
|
2023
|
|
Assets
|
|
|
|
|
Vessels
|
5,301.9
|
3,222.9
|
3,758.9
|
|
Containers and handling
equipment
|
988.7
|
788.2
|
792.9
|
|
Other tangible
assets
|
91.1
|
61.1
|
85.2
|
|
Intangible
assets
|
107.6
|
93.3
|
102.0
|
|
Investments in
associates
|
26.0
|
26.8
|
26.4
|
|
Other
investments
|
844.6
|
1,252.6
|
908.7
|
|
Other
receivables
|
69.9
|
105.5
|
97.9
|
|
Deferred tax
assets
|
2.5
|
9.6
|
2.6
|
|
Total non-current
assets
|
7,432.3
|
5,560.0
|
5,774.6
|
|
|
|
|
|
Inventories
|
208.4
|
156.4
|
179.3
|
|
Trade and other
receivables
|
1,062.5
|
644.3
|
596.5
|
|
Other
investments
|
766.6
|
918.6
|
874.1
|
|
Cash and cash
equivalents
|
1,548.7
|
912.1
|
921.5
|
|
Total current
assets
|
3,586.2
|
2,631.4
|
2,571.4
|
|
Total
assets
|
11,018.5
|
8,191.4
|
8,346.0
|
|
|
|
|
|
Equity
|
|
|
|
|
Share capital and
reserves
|
2,041.1
|
1,980.7
|
2,017.5
|
|
Retained
earnings
|
1,884.8
|
586.9
|
437.2
|
|
Equity attributable
to owners of the Company
|
3,925.9
|
2,567.6
|
2,454.7
|
|
Non-controlling
interests
|
4.8
|
3.8
|
3.3
|
|
Total
equity
|
3,930.7
|
2,571.4
|
2,458.0
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Lease
liabilities
|
4,284.7
|
2,952.0
|
3,244.1
|
|
Loans and other
liabilities
|
67.4
|
79.3
|
73.6
|
|
Employee
benefits
|
43.4
|
39.4
|
46.1
|
|
Deferred tax
liabilities
|
5.2
|
13.0
|
6.1
|
|
Total non-current
liabilities
|
4,400.7
|
3,083.7
|
3,369.9
|
|
|
|
|
|
Trade and other
payables
|
668.3
|
554.6
|
566.4
|
|
Provisions
|
93.0
|
58.3
|
60.7
|
|
Contract
liabilities
|
433.8
|
207.3
|
198.1
|
|
Lease
liabilities
|
1,433.6
|
1,668.0
|
1,644.7
|
|
Loans and other
liabilities
|
58.4
|
48.1
|
48.2
|
|
Total current
liabilities
|
2,687.1
|
2,536.3
|
2,518.1
|
|
Total
liabilities
|
7,087.8
|
5,620.0
|
5,888.0
|
|
Total equity and
liabilities
|
11,018.5
|
8,191.4
|
8,346.0
|
|
CONSOLIDATED INCOME
STATEMENTS (Unaudited)
|
|
(U.S. dollars in
millions, except per share data)
|
|
|
Nine months
ended September 30
|
Three months
ended September 30
|
Year ended
December 31
|
|
2024
|
2023
|
2024
|
2023
|
2023
|
|
|
|
|
|
|
|
Income from voyages and
related services
|
6,259.8
|
3,956.9
|
2,765.2
|
1,273.0
|
5,162.2
|
|
Cost of voyages and
related services
|
|
|
|
|
|
|
Operating expenses and
cost of services
|
(3,381.9)
|
(2,922.0)
|
(1,167.8)
|
(1,008.4)
|
(3,885.1)
|
|
Depreciation
|
(824.9)
|
(1,212.8)
|
(292.1)
|
(417.4)
|
(1,449.8)
|
|
Impairment of
assets
|
|
(2,034.9)
|
|
(2,034.9)
|
(2,034.9)
|
|
Gross profit
(loss)
|
2,053.0
|
(2,212.8)
|
1,305.3
|
(2,187.7)
|
(2,207.6)
|
|
|
|
|
|
|
|
Other operating
income
|
32.9
|
2.5
|
7.3
|
0.6
|
14.4
|
|
Other operating
expenses
|
(1.7)
|
(32.5)
|
(1.1)
|
(22.4)
|
(29.3)
|
|
General and
administrative expenses
|
(209.7)
|
(209.4)
|
(75.9)
|
(63.9)
|
(280.7)
|
|
Share of loss of
associates
|
(4.8)
|
(5.2)
|
(0.8)
|
(2.3)
|
(7.8)
|
|
|
|
|
|
|
|
Results from
operating activities
|
1,869.7
|
(2,457.4)
|
1,234.8
|
(2,275.7)
|
(2,511.0)
|
|
|
|
|
|
|
|
Finance
income
|
81.0
|
117.7
|
19.8
|
35.6
|
142.2
|
|
Finance
expenses
|
(346.5)
|
(338.7)
|
(121.6)
|
(101.5)
|
(446.7)
|
|
|
|
|
|
|
|
Net finance
expenses
|
(265.5)
|
(221.0)
|
(101.8)
|
(65.9)
|
(304.5)
|
|
|
|
|
|
|
|
Profit (loss) before
income taxes
|
1,604.2
|
(2,678.4)
|
1,133.0
|
(2,341.6)
|
(2,815.5)
|
|
|
|
|
|
|
|
Income taxes
|
(13.1)
|
137.1
|
(6.8)
|
71.1
|
127.6
|
|
|
|
|
|
|
|
Profit (loss) for
the period
|
1,591.1
|
(2,541.3)
|
1,126.2
|
(2,270.5)
|
(2,687.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Owners of the
Company
|
1,586.2
|
(2,547.2)
|
1,124.6
|
(2,272.6)
|
(2,695.6)
|
|
Non-controlling
interests
|
4.9
|
5.9
|
1.6
|
2.1
|
7.7
|
|
Profit (loss) for
the period
|
1,591.1
|
(2,541.3)
|
1,126.2
|
(2,270.5)
|
(2,687.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share (US$)
|
|
|
|
|
|
|
Basic earnings (loss)
per 1 ordinary share
|
13.18
|
(21.19)
|
9.34
|
(18.90)
|
(22.42)
|
|
Diluted earnings (loss)
per 1 ordinary share
|
13.17
|
(21.19)
|
9.34
|
(18.90)
|
(22.42)
|
|
|
|
|
|
|
|
Weighted average
number of shares for earnings
(loss) per share calculation:
|
|
|
|
|
|
|
Basic
|
120,340,513
|
120,194,990
|
120,372,813
|
120,219,761
|
120,213,031
|
|
Diluted
|
120,463,258
|
120,194,990
|
120,475,290
|
120,219,761
|
120,213,031
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
|
|
(U.S. dollars in
millions)
|
|
|
Nine months
ended
September 30
|
Three months
ended
September 30
|
Year ended
December 31
|
|
2024
|
2023
|
2024
|
2023
|
2023
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Profit (loss) for the
period
|
1,591.1
|
(2,541.3)
|
1,126.2
|
(2,270.5)
|
(2,687.9)
|
|
|
|
|
|
|
|
Adjustments
for:
|
|
|
|
|
|
|
Depreciation and
amortization
|
833.6
|
1,232.5
|
295.0
|
423.8
|
1,471.8
|
|
Impairment
loss
|
|
2,063.4
|
|
2,063.4
|
2,063.4
|
|
Net finance
expenses
|
265.5
|
221.0
|
101.8
|
65.9
|
304.5
|
|
Share of losses and
change in fair value of investees
|
4.8
|
4.5
|
0.8
|
2.3
|
6.5
|
|
Capital loss (gain),
net
|
(31.7)
|
3.2
|
(6.2)
|
(4.2)
|
(10.9)
|
|
Income taxes
|
13.1
|
(137.1)
|
6.8
|
(71.1)
|
(127.6)
|
|
Other non-cash
items
|
11.9
|
14.2
|
8.9
|
4.5
|
18.9
|
|
2,688.3
|
860.4
|
1,533.3
|
214.1
|
1,038.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
inventories
|
(29.1)
|
34.3
|
(20.7)
|
17.7
|
11.4
|
|
Change in trade and
other receivables
|
(481.3)
|
237.5
|
(34.3)
|
60.6
|
242.7
|
|
Change in trade and
other payables including contract liabilities
|
326.8
|
(76.7)
|
(5.0)
|
19.2
|
(95.1)
|
|
Change in provisions
and employee benefits
|
31.9
|
7.0
|
4.6
|
4.1
|
15.9
|
|
(151.7)
|
202.1
|
(55.4)
|
101.6
|
174.9
|
|
|
|
|
|
|
|
Dividends received from
associates
|
2.4
|
1.7
|
1.2
|
0.2
|
2.3
|
|
Interest
received
|
64.6
|
113.0
|
24.8
|
25.0
|
133.8
|
|
Income taxes received
(paid)
|
(3.2)
|
(319.4)
|
(6.4)
|
(3.3)
|
(329.7)
|
|
|
|
|
|
|
|
Net cash generated
from operating activities
|
2,600.4
|
857.8
|
1,497.5
|
337.6
|
1,020.0
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceeds from sale of
tangible assets, intangible assets and interest
in investees
|
10.5
|
21.4
|
7.3
|
3.7
|
27.4
|
|
Acquisition and
capitalized expenditures of tangible assets,
intangible assets and interest in
investees
|
(141.1)
|
(75.2)
|
(50.3)
|
(13.7)
|
(115.7)
|
|
Proceeds from sale
(acquisition) of investment instruments, net
|
240.8
|
(609.6)
|
(74.3)
|
(26.2)
|
(138.2)
|
|
Loans granted to
investees
|
(5.2)
|
(3.8)
|
(2.4)
|
(2.1)
|
(5.4)
|
|
Change in other
receivables
|
23.3
|
(4.7)
|
7.9
|
9.3
|
3.2
|
|
Change in other
investments (mainly deposits), net
|
(34.4)
|
2,002.6
|
(34.4)
|
19.9
|
2,005.2
|
|
Net cash generated
from (used in) investing activities
|
93.9
|
1,330.7
|
(146.2)
|
(9.1)
|
1,776.5
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Repayment of lease
liabilities and borrowings
|
(1,591.2)
|
(1,214.1)
|
(474.2)
|
(352.7)
|
(1,713.1)
|
|
Change in short term
loans
|
10.3
|
(21.0)
|
10.3
|
|
(21.0)
|
|
Dividend paid to
non-controlling interests
|
(4.2)
|
(7.5)
|
(0.5)
|
|
(8.9)
|
|
Dividend paid to owners
of the Company
|
(139.6)
|
(769.2)
|
(111.9)
|
|
(769.2)
|
|
Interest
paid
|
(342.2)
|
(281.5)
|
(120.6)
|
(98.8)
|
(380.7)
|
|
Net cash used in
financing activities
|
(2,066.9)
|
(2,293.3)
|
(696.9)
|
(451.5)
|
(2,892.9)
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
627.4
|
(104.8)
|
654.4
|
(123.0)
|
(96.4)
|
|
Cash and cash
equivalents at beginning of the period
|
921.5
|
1,022.1
|
889.8
|
1,040.3
|
1,022.1
|
|
Effect of exchange rate
fluctuation on cash held
|
(0.2)
|
(5.2)
|
4.5
|
(5.2)
|
(4.2)
|
|
Cash and cash
equivalents at the end of the period
|
1,548.7
|
912.1
|
1,548.7
|
912.1
|
921.5
|
|
RECONCILIATION OF NET INCOME TO ADJUSTED
EBIT*
|
|
(U.S. dollars in millions)
|
|
Nine months ended
September 30
|
Three months ended
September 30
|
|
2024
|
2023
|
2024
|
2023
|
|
|
|
|
|
|
Net income (loss)
|
1,591
|
(2,541)
|
1,126
|
(2,270)
|
|
Financial expenses,
net
|
266
|
221
|
102
|
66
|
|
Income taxes
|
13
|
(137)
|
7
|
(71)
|
|
Operating income (EBIT)
|
1,870
|
(2,457)
|
1,235
|
(2,276)
|
|
Capital loss (gain),
beyond the ordinary
course of business
|
(2)
|
21
|
(2)
|
0
|
|
Impairment of
assets
|
0
|
2,063
|
0
|
2,063
|
|
Expenses related to
legal contingencies
|
23
|
0
|
3
|
0
|
|
Adjusted EBIT
|
1,891
|
(373)
|
1,236
|
(213)
|
|
Adjusted EBIT margin
|
30 %
|
(9) %
|
45 %
|
(17) %
|
|
* The table above may
contain slight summation differences due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME TO ADJUSTED
EBITDA*
|
|
(U.S. dollars in millions)
|
|
Nine months ended
September 30
|
Three months ended
September 30
|
|
2024
|
2023
|
2024
|
2023
|
|
|
|
|
|
Net income (loss)
|
1,591
|
(2,541)
|
1,126
|
(2,270)
|
|
Financial expenses,
net
|
266
|
221
|
102
|
66
|
|
Income taxes
|
13
|
(137)
|
7
|
(71)
|
|
Depreciation and
amortization
|
834
|
1,232
|
295
|
424
|
|
EBITDA
|
2,703
|
(1,225)
|
1,530
|
(1,852)
|
|
Capital loss (gain),
beyond the ordinary
course of business
|
(2)
|
21
|
(2)
|
0
|
|
Impairment of
assets
|
0
|
2,063
|
0
|
2,063
|
|
Expenses related to
legal contingencies
|
23
|
0
|
3
|
0
|
|
Adjusted EBITDA
|
2,725
|
859
|
1,531
|
211
|
|
Net income (loss) margin
|
25 %
|
(64) %
|
41 %
|
(178) %
|
|
Adjusted EBITDA margin
|
44 %
|
22 %
|
55 %
|
17 %
|
|
* The table above may
contain slight summation differences due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH GENERATED FROM OPERATING
ACTIVITIES TO FREE CASH FLOW
|
|
(U.S. dollars in millions)
|
|
Nine months ended
September 30
|
Three months ended
September 30
|
|
2024
|
2023
|
2024
|
2023
|
|
|
|
|
|
|
Net cash generated from operating
activities
|
2,600
|
858
|
1,498
|
338
|
|
Capital expenditures,
net
|
(130)
|
(67)
|
(44)
|
(10)
|
|
Free cash flow
|
2,470
|
791
|
1,454
|
328
|
[1] See disclosure regarding "Use of Non-IFRS Financial
Measures."
[2] Operating income (EBIT) for the third quarter was
$1.23 billion. A reconciliation to
Adjusted EBIT is provided in the tables below.
[3] The Company does not provide IFRS guidance because it cannot
be determined without unreasonable effort. See disclosure regarding
"Use of Non-IFRS Measures in the Company's 2024 Guidance."
[4] Net loss for the third quarter of 2023 was primarily driven
by a non-cash impairment loss of $2.06
billion.
[5] The number of shares used to calculate the diluted earnings
per share is 120,475,290. The number of outstanding shares as of
September 30, 2024 was
120,389,157.
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SOURCE Zim Integrated Shipping Services Ltd.