As expected, 2024 was another challenging financial year for the logistics industry. The economic downturn, low transport volumes and a tough market arena created a difficult business environment (see SCI Verkehr, SCI Logistics Barometer, December 2024).
Report on assets, liabilities, financial position and profit or loss
In accordance with its corporate function, BLG AG lent all financial resources available to it to BLG KG for proportionate financing of the working capital required for the provision of its services. This lending is primarily conducted through the central cash management function of BLG KG, in which BLG AG is included. Interest was charged on funds provided under the same conditions as previously, although the conditions for cash management are variable above a minimum interest rate and were adjusted downwards once in the reporting year. Due to higher interest rates compared with the previous year and the higher interest charged on cash management balances as a result, interest income increased here significantly by EUR 255 thousand compared to the previous year.
In the reporting year, BLG AG received liability remuneration (EUR 1,097 thousand; previous year: EUR 1,053 thousand) and management remuneration (EUR 2,500 thousand; previous year: EUR 884 thousand) from BLG KG. Remuneration paid to the members of the Board of Management and the Supervisory Board is reimbursed in full by BLG KG.
Earnings per share of EUR 0.94
Earnings per share are calculated by dividing the net income for the year by the average number of shares outstanding during the financial year. As in the previous year, there were 3,840,000 registered shares outstanding during the 2024 financial year.
In the Outlook as of December 31, 2023, earnings (EBT) for the 2024 financial year were projected to remain at the same level as or slightly below the figures in the 2023 financial year. In the interim report as of June 30, 2024, earnings (EBT) were projected to be higher than in the 2023 financial year. Furthermore, in the ad hoc report of December 12, 2024, the Board of Management once again assumed that earnings before taxes (EBT) will be much higher than the previous year in the 2024 financial year. Earnings before taxes in the 2024 financial year ultimately increased substantially by EUR 1,954 thousand compared with the previous year. This is mainly due to BLG KG’s sharp increase in profit under commercial law arising from high levels of investment income. As a result, the management remuneration rose in the reporting year to the maximum possible amount of EUR 2,500 thousand (previous year: EUR 884 thousand). Furthermore, as explained above, interest income from cash management rose by EUR 255 thousand compared with the previous year.
In addition to the ongoing salary adjustments, the increase in personnel expenses during the financial year can primarily be attributed to expenses for a new pension commitment for a Board of Management member. These expenses were reimbursed by BLG KG and are recognized under other operating income.
Refinancing for pensions/market valuation
In order to enable insolvency-protected reinsurance cover or refinancing for the pension obligations, a two-tier model with additional premium deposit accounts to cover the outstanding premium payments for the reinsurance cover was introduced. As of December 31, 2024, the market valuation resulted in a substantial increase in the carrying amount of the premium deposit account for 2024, after taking the planned premium withdrawals into account. In addition, deposits were made for a new commitment. On the income side, this did not lead to additional or reduced income for BLG AG, as all expenses and income from this are assumed by BLG KG.
The aforementioned new commitment for a member of the Board of Management also led to an increase in pension obligations despite interest rates being consistently high or slightly above the previous year’s level.
The measurement of pension provisions as of December 31, 2024 resulted in the netted value of the pension obligation and the asset value being reported under assets (previous year: under equity and liabilities in the financial statements according to HGB). There are differences in the measurements according to HGB and IFRS due to differences in interest rates. The recognized settlement amount (obligation) owed to BLG KG was subsequently adjusted in accordance with Section 315e HGB to reflect the measurement differences between HGB and IFRS.
Provisions for variable remuneration
The remuneration system currently in effect for members of the Board of Management was introduced retroactively from January 1, 2021. The previous system was terminated retroactively as of December 31, 2020 and the variable remuneration components agreed under it will no longer be paid out accordingly.
The switch to the new remuneration system for the Board of Management with short-term and long-term target components, in accordance with the provisions of the Act on the Implementation of the Second Shareholders’ Rights Directive (ARUG II), leads to a significant increase in provisions, as the transfers for the long-term remuneration components are no longer made in installments over time, but become due in full when the target agreement is concluded.
On the basis of the revaluation as of December 31, 2024, the existing provisions for variable remuneration for the financial years 2021 to 2023 were adjusted marginally. Furthermore, on the basis of the target figures achieved to date, provisions of EUR 2,190 thousand (under German commercial law EUR 2,243 thousand) were recognized for variable remuneration components for the 2024 financial year. All expenses relating to Board of Management remuneration are reimbursed by BLG KG by way of offsetting and recognized in other operating income. Valuation differences between HGB and IFRS are also reflected here in the above settlement amount due to BLG KG.
There were no other significant changes in assets, liabilities, financial position and profit or loss compared with the previous year.