Economic Value Creation
We prioritize strategic and sustainable growth. This helps us meet the responsibility we have as a major employer at many locations.
As part of the logistics sector, we provide services at the decisive interfaces between producers, retailers, and consumers. This includes production supply, goods distribution as well as traditional freight forwarding business. The demands on logistics are changing at an ever-increasing pace. This development is being driven not only by continuing globalization but also by ever shorter product life cycles, advancing urbanization in many parts of the world and new technologies. Our industry also faces challenges from the unrelenting pressure on margins as well as demographic development and the related shortage of skilled employees. Other factors are the ever-growing importance of e-commerce and high customer demands regarding speed, flexibility, quality of delivery and green credentials. In the current situation, the development of the coronavirus pandemic over the coming months is, of course, also one of the risks that has to be allowed for. Although the impacts have meanwhile been factored in to existing business processes and the economy as a whole has adjusted to the new situation, significant disruptions to the global flow of goods and therefore also to logistics processes may occur again in the future.
As part of BLG LOGISTICS’ mission and vision and the sharpening of our strategic guidelines, we designed the management system to be as clear and transparent as possible. Internal reporting and remuneration systems are established for the entire Group stringently according to uniform measurement variables. The key performance indicators are revenue, earnings before taxes (EBT) and the EBT margin derived from both of these.
Against the backdrop of the coronavirus crisis, we closed the 2020 financial year with a very substantial loss overall. While the business development at the start of the reporting period was in line with our expectations, the historic ramifications of the pandemic for the world economy, global trade flows and the business of our customers was quickly felt in terms of volumes and results. Due to the idle business of many of our customers in the lockdown months of March to May alone, we incurred a loss in the double-digit millions. This was compounded by measurement adjustments and risk provisioning necessitated by the pandemic. Volumes and earnings picked up again toward the end of the year, so that all in all we came through the crisis better than had been forecast in the spring, despite the negative development. There was sufficient liquidity at all times and the number of employees also remained stable. The increased diversification of our business in recent years and, hand in hand with this, the broader customer base from different industries have given us valuable advantages here.
Group revenue declined year on year by EUR 93.4 million to EUR 1,065.2 million, a decrease of around 8.1 percent. EBT also reduced markedly as a result of the effects of the coronavirus pandemic – by EUR 153.7 million to EUR –116.1 million. Correspondingly, the EBT margin was –10.9 percent, which is significantly below the previous year’s figure of 3.2 percent. The financial management of BLG LOGISTICS is detailed in depth in our Financial Report 2020. Even though 2021 will still be characterized by challenging conditions, uncertainties and probably temporarily fluctuating volumes, we are working intensively to constantly improve our overall financial situation and, despite the crisis, consider ourselves well positioned for the future.