32. Financial Instruments

Classification of financial assets and financial liabilities

Financial assets are classified on the basis of the entity’s business model for its management and the contractual cash flow characteristics of the assets.

The measurement of debt instruments at amortized cost is only permitted if a financial asset is held in a business model, the objective of which is to generate contractual cash flows from the asset and the contractual arrangements provide fixed dates for the payments. In addition, these payments must be solely payments of principal and interest.

If some of these criteria are not met, the measurement must be at fair value. There is an irrevocable option to measure equity instruments not held for trading at fair value through other comprehensive income. In this case, all changes in value, with the exception of dividends, must be presented in other comprehensive income without the option of reclassification to profit or loss.

Carrying amounts and fair values of financial instruments by class, line item in the statement of financial position and measurement category under IFRS 9

In the tables shown on the following pages, the financial instruments are listed according to the above criteria, including the indication of their level in the fair value hierarchy. The measurement categories are described in notes 16 and 18 and under “Derivative financial instruments”.

Classification to the levels of the fair value hierarchy takes place on the basis of the measurement methods used and is described in note 1 under “Determination of fair values”.

Carrying amounts of financial instruments classified by line item in the statement of financial position, class and category

12/31/2024

 

 

Carrying amounts

 

Fair values

EUR thousand

 

Cost

 

Fair value through profit or loss

 

Fair value through other comprehensive income

 

Fair value hedging

 

Total carrying amount

 

Fair value level

 

Fair value

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in affiliated companies and other equity investments

 

0

 

0

 

389

 

0

 

389

 

3

 

n/a

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged derivatives

 

0

 

0

 

0

 

3,518

 

3,518

 

2

 

3,518

Current financial receivables

 

0

 

134,083

 

0

 

0

 

134,083

 

3

 

n/a

 

 

0

 

134,083

 

389

 

3,518

 

137,991

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease receivables

 

200,040

 

0

 

0

 

0

 

200,040

 

 

 

n/a

Miscellaneous non-current financial receivables

 

72

 

0

 

0

 

0

 

72

 

3

 

n/a

Miscellaneous other non-current assets

 

337

 

0

 

0

 

0

 

337

 

2

 

n/a

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade receivables

 

165,285

 

0

 

0

 

0

 

165,285

 

 

 

n/a

Lease receivables

 

28,700

 

0

 

0

 

0

 

28,700

 

 

 

n/a

Current financial receivables

 

6,887

 

0

 

0

 

0

 

6,887

 

 

 

n/a

Miscellaneous other current assets

 

1,300

 

0

 

0

 

0

 

1,300

 

 

 

n/a

Cash and cash equivalents

 

134,960

 

0

 

0

 

0

 

134,960

 

 

 

n/a

 

 

537,581

 

0

 

0

 

0

 

537,581

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged derivatives

 

0

 

0

 

0

 

79

 

79

 

2

 

79

 

 

0

 

0

 

0

 

79

 

79

 

 

 

 

Financial liabilities not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current loans

 

137,582

 

0

 

0

 

0

 

137,582

 

3

 

136,818

Non-current lease liabilities

 

433,985

 

0

 

0

 

0

 

433,985

 

 

 

n/a

Other borrowings

 

54,433

 

0

 

0

 

0

 

54,433

 

3

 

53,392

Miscellaneous non-current financial liabilities

 

4,575

 

0

 

0

 

0

 

4,575

 

2

 

n/a

Miscellaneous other non-current liabilities

 

3,475

 

0

 

0

 

0

 

3,475

 

2

 

n/a

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

83,898

 

0

 

0

 

0

 

83,898

 

 

 

n/a

Current financial liabilities to banks

 

29,816

 

0

 

0

 

0

 

29,816

 

3

 

29,381

Current lease liabilities

 

65,966

 

0

 

0

 

0

 

65,966

 

 

 

n/a

Other borrowings

 

11,246

 

0

 

0

 

0

 

11,246

 

3

 

10,566

Miscellaneous current financial liabilities

 

57,399

 

0

 

0

 

0

 

57,399

 

 

 

n/a

Other current liabilities

 

31,423

 

0

 

0

 

0

 

31,423

 

 

 

n/a

 

 

913,796

 

0

 

0

 

0

 

913,796

 

 

 

 

12/31/2023

 

 

Carrying amounts

 

Fair values

EUR thousand

 

Cost

 

Fair value through profit or loss

 

Fair value through other comprehensive income

 

Fair value hedging

 

Total carrying amount

 

Fair value level

 

Fair value

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in affiliated companies and other equity investments

 

0

 

0

 

527

 

0

 

527

 

3

 

n/a

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedged derivatives

 

0

 

0

 

0

 

5,200

 

5,200

 

2

 

5,200

Unhedged derivatives

 

0

 

0

 

0

 

0

 

0

 

0

 

0

Current financial receivables

 

0

 

39,154

 

0

 

0

 

39,154

 

3

 

n/a

 

 

0

 

39,154

 

527

 

5,200

 

44,881

 

 

 

 

Financial assets not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease receivables

 

223,384

 

0

 

0

 

0

 

223,384

 

 

 

n/a

Miscellaneous non-current financial receivables

 

34

 

0

 

0

 

0

 

34

 

3

 

n/a

Miscellaneous other non-current assets

 

65

 

0

 

0

 

0

 

65

 

2

 

n/a

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade receivables

 

174,376

 

0

 

0

 

0

 

174,376

 

 

 

n/a

Lease receivables

 

24,945

 

0

 

0

 

0

 

24,945

 

 

 

n/a

Current financial receivables

 

4,699

 

0

 

0

 

0

 

4,699

 

 

 

n/a

Miscellaneous other current assets

 

2,120

 

0

 

0

 

0

 

2,120

 

 

 

n/a

Cash and cash equivalents

 

39,932

 

0

 

0

 

0

 

39,932

 

 

 

n/a

 

 

469,556

 

0

 

0

 

0

 

469,556

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unhedged derivatives

 

0

 

0

 

0

 

158

 

158

 

0

 

158

 

 

0

 

0

 

0

 

158

 

158

 

 

 

 

Financial liabilities not measured at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current loans

 

151,856

 

0

 

0

 

0

 

151,856

 

3

 

150,086

Non-current lease liabilities

 

460,694

 

0

 

0

 

0

 

460,694

 

 

 

n/a

Other borrowings

 

55,849

 

0

 

0

 

0

 

55,849

 

3

 

53,259

Miscellaneous non-current financial liabilities

 

4,542

 

0

 

0

 

0

 

4,542

 

2

 

n/a

Miscellaneous other non-current liabilities

 

3,607

 

0

 

0

 

0

 

3,607

 

2

 

n/a

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

77,379

 

0

 

0

 

0

 

77,379

 

 

 

n/a

Current financial liabilities to banks

 

27,031

 

0

 

0

 

0

 

27,031

 

3

 

26,126

Current lease liabilities

 

60,930

 

0

 

0

 

0

 

60,930

 

 

 

n/a

Other borrowings

 

9,585

 

0

 

0

 

0

 

9,585

 

3

 

8,371

Miscellaneous current financial liabilities

 

50,674

 

0

 

0

 

0

 

50,674

 

 

 

n/a

Other current liabilities

 

15,547

 

0

 

0

 

0

 

15,547

 

 

 

n/a

 

 

917,695

 

0

 

0

 

0

 

917,695

 

 

 

 

The non-current financial assets include equity instruments of EUR 389 thousand (previous year: EUR 527 thousand), for which BLG LOGISTICS has exercised the option to recognize changes in fair value through other comprehensive income. These refer to immaterial investments in corporations for which there is no active market and the market value of which cannot be determined reliably using measurement methods.

Cost is therefore the best estimate of fair value.

In the reporting year, the shares in these corporations were reduced by EUR 105 thousand due to the first-time full consolidation of BLG Automobile Logistics Beteiligungs-GmbH, Bremen. In addition, the shares in BLG Freight, LLC, Hoover, USA, were derecognized in the course of the liquidation of the company and the shares in IGLU Air Cargo GmbH, Mörfelden-Walldorf, were sold at their carrying amount. No further derecognitions or disposals have taken place. There are no plans to sell or derecognize parts of the reported equity investments in the near future.

The current financial receivables relate to profit shares from partnerships classified as debt instruments. As the profit shares are not capital repayments but capital returns, they were measured at fair value through profit or loss.

With the exception of non-current bank loans and other financial loans, there were no material differences between the carrying amounts and fair values of the financial instruments. In principle, the carrying amounts of trade receivables, current financial receivables, miscellaneous other financial receivables and cash and cash equivalents corresponded to their fair values on account of their short-term nature. Investments in affiliated companies and current financial receivables from shareholder accounts were already measured at fair value, resulting in no deviation from the carrying amount. The carrying amounts of trade payables, current financial liabilities and other current financial liabilities essentially corresponded to their fair values on account of their short- term nature.

The following material methods and assumptions were used to determine the level 3 fair values:

The market values were determined using the discounted cash flow method on the basis of the expected future cash flows and current interest rates for comparable financing arrangements that are either directly or indirectly observable on the market.

The yield curve of risk-free German government bonds plus a company-specific, matched-term risk premium was applied as the market interest rate. The risk premium over the average maturity was taken into account for installment payment arrangements.

The level 2 fair values of derivative financial instruments were based on external fair value measurements. The variable cash flows were determined using the forward rates of the benchmark rates used for the hedging instruments. The credit spread is not part of the hedging relationship.

The financial receivables measured at fair value in level 3 relate to the recognition of profit shares of partnerships (see note 16). As a result, a separate measurement method was not applied as the recognition is derived from the respective financial statements and ownership interests in the partnerships.

The receivables developed as follows:

Receivables

EUR thousand

 

2024

 

2023

As of January 1

 

39,154

 

27,838

Additions from profit credits

 

134,083

 

38,721

Payments of profit shares

 

-39,154

 

-27,028

Unrealized changes to fair value recognized through profit or loss

 

0

 

-377

of which recognized in other operating expenses

 

0

 

-377

As of December 31

 

134,083

 

39,154

Movements between the different levels of the fair value hierarchy are recognized at the end of the reporting period, in which they occur. In the reporting year, no movements occurred.

Net earnings by measurement category

The following net earnings were attributable to the measurement categories of the financial instruments:

2024

 

 

Subsequent measurement

EUR thousand

 

From interest rates

 

From dividends

 

From disposal

 

Fair value

 

Net earnings

Financial assets at amortized cost

 

14,532

 

0

 

-357

 

0

 

14,175

Equity instruments measured at fair value through other comprehensive income

 

0

 

590

 

0

 

0

 

590

Hedging instruments

 

1,808

 

0

 

0

 

108

 

1,916

Financial liabilities at amortized cost

 

-26,976

 

0

 

0

 

0

 

-26,976

Total

 

-10,636

 

590

 

-357

 

108

 

-10,295

2023

 

 

Subsequent measurement

EUR thousand

 

From interest rates

 

From dividends

 

From disposal

 

Fair value

 

Net earnings

Financial assets at amortized cost

 

13,500

 

0

 

-106

 

0

 

13,394

Equity instruments measured at fair value through other comprehensive income

 

0

 

204

 

0

 

0

 

204

Financial assets measured at fair value through profit or loss

 

0

 

0

 

0

 

-377

 

-377

Hedging instruments

 

1,244

 

0

 

0

 

-94

 

1,150

Financial liabilities at amortized cost

 

-23,515

 

0

 

0

 

0

 

-23,515

Total

 

-8,771

 

204

 

-106

 

-471

 

-9,144

Objectives and methods of financial risk management

The principal financial instruments used to finance the Group include non-current loans, current borrowings, lease liabilities, other borrowings, factoring and cash, including short-term deposits with banks. The primary objective behind these financial instruments is to finance the operations of BLG LOGISTICS. BLG LOGISTICS has access to a range of other financial instruments, such as trade receivables and payables, that arise directly as part of its operations.

Financial risk management is the responsibility of the Treasury department, whose tasks and objectives are described in guidelines adopted by the Board of Management. The central task besides managing liquidity and arranging financing is minimizing financial risks at Group level. This includes preparing and analyzing financing and hedging strategies and contracting hedging instruments.

Material risks arising for the Group from financial instruments are presented below and consist of credit risks, foreign currency risks, liquidity risks and interest rate risks. The Board of Management has adopted a risk management guideline aimed at identifying and monitoring risks from an early stage. At Group level, the current market price risk for all financial instruments is also monitored.

Hedge accounting is applied if derivative financial instruments are used as hedging instruments and the requirements for hedge accounting in accordance with IFRS 9 are met. The objective is to reduce inconsistencies in recognition or measurement arising from gains or losses from a hedging instrument not being credited or charged to the same account in the financial statements as the gains or losses from the hedged risk, for instance. The Group’s accounting policies for derivatives and other disclosures on hedge accounting are presented under “Derivative financial instruments”.

Credit risk

The Group’s credit risk mainly results from trade receivables and lease receivables. The amounts disclosed in the combined statement of financial position do not include allowance accounts for expected credit losses. Owing to the ongoing monitoring of receivables at management level and the use of commercial credit insurance depending on customer creditworthiness, BLG LOGISTICS is not currently exposed to any significant credit risk. Disclosures related to credit risk and expected credit losses from trade receivables and lease receivables can be found in notes 16 and 18.

The credit risk is limited with regard to cash and derivative financial instruments as these instruments are currently held exclusively at banks that have been awarded high credit ratings by international rating agencies, which are highly secure thanks to a joint liability scheme, and/or at which there are offsetting opportunities through non-current loans.

The maximum credit risk of the Group is represented by the carrying amounts of the financial assets recognized in the statement of financial position (including derivative financial instruments with positive market value). The Group is also exposed to a liability risk through the assumption of financial guarantees which, as of the reporting date, was limited to a maximum of EUR 150 thousand (previous year: EUR 29 thousand). At the reporting date, there were no significant credit risk mitigation agreements or hedges.

There are no significant concentrations of credit risk in the Group.

Impairment of financial instruments

At BLG LOGISTICS, the impairment requirements apply to financial assets measured at amortized cost, lease receivables and contract assets. They are reported under net gains/losses from impairment. This item also includes impairment of equity instruments measured at fair value through profit or loss. In these cases, the impairment is the difference between cost and fair value of the equity instrument in question.

Impairment of financial instruments

EUR thousand

 

2024

 

2023

Financial instruments at cost

 

 

 

 

Impairment on trade receivables and contract assets

 

 

 

 

Addition to loss allowances

 

-1,663

 

-306

Reversal of loss allowances recognized in previous years

 

181

 

264

Derecognitions due to uncollectability

 

-343

 

-106

 

 

-1,825

 

-148

Impairment of financial receivables

 

 

 

 

Addition to loss allowances

 

-800

 

0

 

 

-800

 

0

Impairment of lease receivables

 

 

 

 

Total

 

-2,625

 

-148

Foreign currency risk

With very few exceptions, the Group companies operate in the eurozone and invoice only in euros. As a result, currency risk could only arise in isolated cases, such as in relation to foreign dividend income or the purchase of goods and services from abroad. An interest rate and currency swap has been concluded to hedge against the foreign currency risk from a variable USD loan granted in the context of Group financing. Further information is presented under “Derivative financial instruments”.

As of December 31, 2024 and December 31, 2023, there were no significant currency risks in the Group.

Capital risk management

An important capital management objective for BLG LOGISTICS is to ensure the ability of the company to continue as a going concern in order to provide income to shareholders and to provide other stakeholders with the benefits to which they are entitled. Additional objectives include optimizing liquidity security and maintaining an optimum capital structure over the long term to bring down the costs of capital in general and the refinancing risk in particular.

BLG LOGISTICS monitors its capital on the basis of the equity ratio and other key performance indicators. Assurances have been made to all partner banks with regard to equal treatment and the change-of-control clause.

In 2024, the strategy remained to secure access to external funds at acceptable costs.

In the reporting year, equity increased substantially from EUR 285,677 thousand to EUR 356,657 thousand, while total assets increased only slightly from EUR 1,317,368 thousand to EUR 1,408,040 thousand. Accordingly, the equity ratio improved from 21.7 percent to 25.3 percent. This is attributable in particular to the positive combined comprehensive income. Positive effects were also experienced from the remeasurement of pension provisions in the amount of EUR 1,403 thousand, as well as changes in the measurement of derivatives used as hedging instruments in cash flow hedges in the amount of EUR 596. The effects were recognized in other comprehensive income and relate to both fully consolidated companies and companies accounted for using the equity method, taking into account deferred taxes. The goal is to achieve an equity ratio of 30 percent.

Liquidity risk

Liquidity risks may arise from payment bottlenecks and the resulting higher financing costs. The Group’s liquidity is ensured by central cash management at the level of BLG KG. All significant subsidiaries are included in cash management. Due to the centralized management of capital expenditure and credit management, financial resources (loans/leases) can be provided in good time to meet all payment requirements.

The Group’s liquidity needs are covered by cash and committed credit facilities. As of December 31, 2024, the Group had unused current account credit facilities of around EUR 76 million (previous year: around EUR 77 million).

Measures aimed at achieving BLG LOGISTICS’ sustainability targets are also attractive for potential lenders and can be criteria for granting loans. Our sustainability measures therefore act as a factor in ensuring that we can meet our liquidity requirements in the future.

In parallel, the BLG Group uses the non-recourse sale of receivables under a factoring agreement as an off-balance-sheet financing instrument to further optimize the balance sheet structure. The obligations of the factor to purchase existing and future receivables are limited to a total maximum amount of EUR 75 million. BLG LOGISTICS is free to decide to what extent the revolving nominal volume is utilized. The risks material to disposal relate to the credit risk and the risk of late payment (late payment risk). The credit risk is transferred in full to the factor in return for payment of a factoring fee. There is no significant late payment risk. The receivables were therefore derecognized in full. The cash flows from factoring were recognized accordingly in cash flows from operating activities through the change in trade receivables. The BLG Group recognized expenses (factoring fee, interest) in the amount of EUR 1,488 thousand (previous year: EUR 1,136 thousand) in relation to the ongoing engagement. The nominal volume of the receivables sold as of December 31, 2024 came to EUR 51.6 million (previous year: EUR 51.9 million).

The following tables present the contractually arranged (undiscounted) interest payments and principal repayments of non-current financial liabilities and derivative financial instruments (interest rate swaps).

12/31/2024

 

 

 

 

Cash flows

 

 

EUR thousand

 

 

 

2025

 

2026

 

2027-2029

 

2030-2034

 

2035 et seqq.

 

Total

 

Carrying amounts (derivatives netted)

Non-derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current loans from banks

 

Fixed interest rate

 

1,263

 

1,053

 

2,125

 

685

 

0

 

5,126

 

 

 

Floating interest rate

 

4,810

 

4,474

 

11,490

 

6,980

 

0

 

27,754

 

 

 

Repayment

 

29,274

 

8,582

 

56,116

 

72,884

 

0

 

166,856

 

166,856

Lease liabilities

 

Fixed interest rate

 

13,506

 

11,465

 

27,895

 

36,515

 

46,347

 

135,728

 

 

 

Floating interest rate

 

0

 

0

 

0

 

0

 

0

 

0

 

 

 

Repayment

 

65,817

 

57,401

 

78,367

 

74,229

 

221,258

 

497,072

 

499,951

Other borrowings

 

Fixed interest rate

 

1,578

 

1,323

 

2,479

 

812

 

0

 

6,192

 

 

 

Floating interest rate

 

0

 

0

 

0

 

0

 

0

 

0

 

 

 

Repayment

 

11,246

 

12,020

 

28,314

 

14,099

 

0

 

65,679

 

65,679

Total

 

 

 

127,494

 

96,318

 

206,786

 

206,204

 

267,605

 

904,407

 

732,486

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps/interest rate and currency swaps

 

Proceeds

 

-2,641

 

-1,847

 

-5,960

 

-4,779

 

0

 

-15,227

 

 

 

Payments

 

1,971

 

1,476

 

4,352

 

3,640

 

0

 

11,439

 

3,439

Total

 

 

 

-670

 

-371

 

-1,608

 

-1,139

 

0

 

-3,788

 

3,439

12/31/2023

 

 

 

 

Cash flows

 

 

EUR thousand

 

 

 

2024

 

2025

 

2026-2028

 

2029-2033

 

2034 et seqq.

 

Total

 

Carrying amounts (derivatives netted)

Non-derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current loans from banks

 

Fixed interest rate

 

1,550

 

1,263

 

2,645

 

1,218

 

0

 

6,676

 

 

 

Floating interest rate

 

5,920

 

5,120

 

13,548

 

7,533

 

0

 

32,121

 

 

 

Repayment

 

20,043

 

29,274

 

40,929

 

81,653

 

0

 

171,899

 

171,899

Lease liabilities

 

Fixed interest rate

 

13,297

 

11,150

 

26,253

 

33,493

 

42,118

 

126,311

 

 

 

Floating interest rate

 

0

 

0

 

0

 

0

 

0

 

0

 

 

 

Repayment

 

60,292

 

60,467

 

102,261

 

82,044

 

213,604

 

518,668

 

521,624

Other borrowings

 

Fixed interest rate

 

1,353

 

1,174

 

2,419

 

1,022

 

0

 

5,968

 

0

 

Floating interest rate

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

Repayment

 

9,585

 

9,764

 

27,072

 

19,013

 

0

 

65,434

 

65,434

Total

 

 

 

112,040

 

118,212

 

215,127

 

225,976

 

255,722

 

927,077

 

758,957

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps/interest rate and currency swaps

 

Proceeds

 

-3,746

 

-2,410

 

-5,837

 

-6,786

 

-204

 

-18,983

 

0

 

Payments

 

2,308

 

1,939

 

4,432

 

4,887

 

149

 

13,715

 

5,042

Total

 

 

 

-1,438

 

-471

 

-1,405

 

-1,899

 

-55

 

-5,268

 

5,042

All non-current financial instruments held at the end of the reporting period and for which payments had been contractually arranged were included here. Budget figures for future new liabilities are not included whereas current liabilities with maturities of up to one year were disclosed in the notes to the individual items in the statement of financial position.

The floating interest payments from financial instruments were calculated on the basis of the last interest rate fixed before the end of the reporting period.

Interest rate risk

The interest rate risk which BLG LOGISTICS is exposed to arises primarily from non-current loans and other non-current financial liabilities. Interest rate risks are managed with a combination of fixed-interest and floating-interest loan capital. The majority of the liabilities to banks have been concluded for the long term or fixed interest rates have been agreed through to the end of the financing term, either originally as part of the loan agreements or through interest rate swaps which have been concluded within micro-hedges for individual floating-interest loans. In addition, while interest rates were low and attractive for investments, a portion of the financing requirement of the coming years was hedged in the prior years by agreeing forward interest rate swaps. The final tranche of EUR 15 million from a total volume of EUR 90 million was raised in the reporting year. Further information is presented under “Derivative financial instruments”.

Interest rate risks are disclosed through sensitivity analyses in accordance with IFRS 7. These risks illustrate the effects of changes in the market interest rate on interest payments, interest income and expense, other income items and equity. The interest rate sensitivity analyses are based on the following assumptions.

With regard to non-derivative financial instruments with fixed interest rates, market interest rate changes are only recognized through profit or loss if these financial instruments are measured at fair value. All fixed-interest financial instruments measured at amortized cost are not subject to interest rate risks within the meaning of IFRS 7. This applies to all fixed-interest loan liabilities of BLG LOGISTICS, including lease liabilities and other financial loans. When hedging interest rate risks in the form of cash flow hedge-designated interest rate swaps, changes to the cash flows and to the contributions to earnings induced by changes to the market interest rate of the hedged primary financial instruments and the interest rate swaps balance each other out almost completely, effectively eliminating the interest rate risk.

Measuring hedging instruments at fair value through other comprehensive income has an effect on the hedging reserve in equity and is therefore taken into account in the equity-related sensitivity calculation. Changes in the market interest rate of non-derivative floating-interest financial instruments, the interest payments of which are not structured as hedged items as part of cash flow hedges against interest rate risks, have an effect on net interest income (expense) and are therefore included in the calculation of income-related sensitivities.

The same applies to interest payments from interest rate swaps which are, as an exception, not contained in a hedge accounting relationship in accordance with IFRS 9. In the case of these interest rate swaps, market interest rate changes also have an effect on the fair value and therefore affect the remeasurement of financial assets or financial liabilities to fair value and are therefore included in the income-related sensitivity analysis.

If the market interest rate at the end of each reporting period had been 100 basis points higher (lower), it would have resulted in the effects shown in the following table on earnings before taxes and on equity (before deferred taxes):

Interest rate risk – Market interest rate

EUR thousand

 

12/31/2024

 

12/31/2023

Changes in earnings

 

 

 

 

Higher

 

-686

 

-507

Lower

 

686

 

507

Changes in equity (excluding changes in earnings)

 

 

 

 

Higher

 

5,236

 

5,275

Lower

 

-5,733

 

-5,548

Fixed interest financial instruments

Fixed interest rates have been agreed for the following financial instruments. BLG LOGISTICS is therefore exposed to an interest rate risk for the fair value.

12/31/2024

 

 

Residual maturities

EUR thousand

 

up to 1 year

 

1 to 5 years

 

over 5 years

 

Total

Non-current loans from banks

 

10,708

 

26,698

 

12,384

 

49,790

Interest rate swaps

 

0

 

15,000

 

75,000

 

90,000

Other borrowings

 

11,246

 

40,334

 

14,099

 

65,679

Lease liabilities

 

66,034

 

136,319

 

297,598

 

499,951

Total

 

87,988

 

218,351

 

399,081

 

705,420

12/31/2023

 

 

Residual maturities

EUR thousand

 

up to 1 year

 

1 to 5 years

 

over 5 years

 

Total

Non-current loans from banks

 

14,712

 

30,637

 

19,153

 

64,502

Interest rate swaps

 

0

 

0

 

75,000

 

75,000

Other borrowings

 

9,585

 

36,836

 

19,013

 

65,434

Lease liabilities

 

60,930

 

163,279

 

297,415

 

521,624

Total

 

85,227

 

230,752

 

410,581

 

726,560

Lease liabilities are discounted using the interest rate inherent to the lease, if that rate can be determined. Alternatively, they are discounted at the incremental borrowing rate. The discount rate corresponds to the interest rate determined at the commencement date of the lease, unless a reassessment requires a remeasurement of the lease liabilities using a changed discount rate. This applies if changes in the estimate regarding the exercise or non-exercise of purchase, renewal or termination options arise, or changes to the scope, amount of contractual payments or the term of the lease are agreed.

Floating rate financial instruments

Floating interest rates have been agreed for the following financial instruments. The Group is therefore exposed to an interest rate risk for the cash flows. The interest rate swaps in question are presented with a minus sign, as the interest rate risk here offsets the interest rate risk from the loans taken out.

12/31/2024

 

 

Residual maturities

EUR thousand

 

up to 1 year

 

1 to 5 years

 

over 5 years

 

Total

Non-current loans from banks

 

18,566

 

38,000

 

60,500

 

117,066

Interest rate swaps

 

0

 

-15,000

 

-75,000

 

-90,000

Total

 

18,566

 

23,000

 

-14,500

 

27,066

12/31/2023

 

 

Residual maturities

EUR thousand

 

up to 1 year

 

1 to 5 years

 

over 5 years

 

Total

Non-current loans from banks

 

5,331

 

39,566

 

62,500

 

107,397

Interest rate swaps

 

0

 

0

 

-75,000

 

-75,000

Total

 

5,331

 

39,566

 

-12,500

 

32,397

The Group’s other financial instruments, which are not included in the tables, are not subject to any significant interest rate risk.

Derivative financial instruments

A risk to be hedged must exist to enable the use of derivatives. However, open derivative positions may arise in connection with hedging transactions in which the underlying transaction no longer exists or does not arise as planned. Interest rate derivatives are solely employed to optimize loan conditions and to limit interest rate risks arising from floating interest payments in relation to financing strategies with matching maturities (cash flow hedges). Derivatives to hedge foreign currency risks are used exclusively to limit foreign currency risk in relation to financing in foreign currencies (cash flow hedges). Derivatives are not used for trading or speculative purposes.

The Group has set a hedging ratio of 1:1 for all hedging relationships. Premiums for country or credit risks (credit spread or foreign currency basis spread) are not part of the hedging relationships. Hedging costs are initially recognized in the hedge reserve in equity and reclassified to profit or loss over the term of the hedging relationship.

The existence of the economic relationship between the hedged items and the hedging instruments for assessing the hedge effectiveness is determined prospectively on the basis of significant features such as nominal amount, benchmark rate and maturity. Ineffectiveness is measured at the end of each reporting period on the basis of the hypothetical derivative method. Ineffectiveness can result, in particular, from differences between the repricing time periods of the swaps and the loans.

Derivative financial instruments are recognized in the statement of financial position as of the date the contract is concluded. They are measured at fair value under additions. Subsequent measurement also takes place at the fair value effective at the end of the reporting period. To determine the fair value of a swap, the expected cash flows are discounted on both sides of the swap based on the current yield curve. The difference between the two amounts is the net market value of the swap. This market valuation of financial derivatives is the price at which one party would assume the existing contractual rights and obligations of the other party. The market values are determined based on the prevailing market conditions at the end of the reporting period.

If derivative financial instruments are used as hedging instruments and the requirements for hedge accounting in accordance with IFRS 9 are met, their accounting treatment depends on the type of hedging relationship and the hedged item. Derivative financial instruments that do not qualify for hedge accounting are classified as measured at fair value through profit or loss in accordance with IFRS 9.

The hedging relationship between the hedged item and the hedging instrument, and the objective and strategy of risk management are documented at hedge inception in order to meet the conditions for hedge accounting. This also includes a description of how the effectiveness of the hedging relationship is determined. Effectiveness tests are performed upon hedge inception and at the end of each reporting period as part of the ongoing review as to whether the derivatives employed offset the hedged risks from the underlying transaction.

Changes in the fair value of the effective portions of cash flow hedges are recognized directly in equity. Changes in the fair values of the ineffective portions of cash flow hedges and interest rate swaps that are not designated as hedging instruments in hedging relationships are recognized through profit or loss.

As with other financial assets, derivatives are derecognized when the BLG Group loses control over the underlying rights in whole or in part by selling or discharging them or transferring them to a third party in a manner that qualifies for derecognition. The amounts recognized in equity are reclassified to profit or loss in the period, in which the hedged transaction is settled.

The following hedging instruments were in place at the ends of the reporting periods in order to reduce the interest rate risk from existing bank liabilities and the foreign currency risk from a variable USD loan granted in the context of Group financing:

12/31/2024 – Nominal amounts

 

 

Maturities

EUR thousand

 

up to 1 year

 

1 to 5 years

 

over 5 years

 

Total

Interest rate risk

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

For outstanding loans

 

0

 

15,000

 

75,000

 

90,000

Average hedged interest rate

 

1.692%

 

1.736%

 

1.897%

 

 

 

 

0

 

15,000

 

75,000

 

90,000

Foreign currency risk

 

 

 

 

 

 

 

 

Interest rate and currency swaps

 

 

 

 

 

 

 

 

For internal USD loan

 

405

 

0

 

0

 

405

Hedged USD/EUR rate

 

0.8098

 

0.0000

 

0.0000

 

 

 

 

405

 

0

 

0

 

405

Total

 

405

 

15,000

 

75,000

 

90,405

12/31/2023 – Nominal amounts

 

 

Maturities

EUR thousand

 

up to 1 year

 

1 to 5 years

 

over 5 years

 

Total

Interest rate risk

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

For outstanding loans

 

0

 

0

 

75,000

 

75,000

Average hedged interest rate

 

1.545%

 

1.545%

 

1.700%

 

 

 

 

0

 

0

 

75,000

 

75,000

Foreign currency risk

 

 

 

 

 

 

 

 

Interest rate and currency swaps

 

 

 

 

 

 

 

 

For internal USD loan

 

810

 

405

 

0

 

1,215

Hedged USD/EUR rate

 

0.8098

 

0.8098

 

0.0000

 

 

 

 

810

 

405

 

0

 

1,215

Total

 

810

 

405

 

75,000

 

76,215

The interest rate swaps involve the exchange of floating interest payments for fixed-rate payments. The Group is the payer of the fixed amounts and the recipient of the floating amounts.

The nominal amounts represent the gross volume of all purchases and sales. This figure serves as a benchmark for determining mutually agreed payments but is not a receivable or liability eligible for recognition in the statement of financial position.

Interest rate swaps each have terms of 10 years and are due upon maturing.

The hedging instruments in place as of the ends of the reporting periods had the following effects on the combined statement of financial position:

12/31/2024

EUR thousand

 

Nominal amount

 

Carrying amount

 

Item in the statement of financial position

 

Change in fair value basis for recognizing ineffectiveness

Interest rate risk

 

 

 

 

 

 

 

 

Outstanding loans

 

90,000

 

3,518

 

Current other assets

 

-1,712

Planned loans

 

0

 

0

 

0

 

0

 

 

90,000

 

3,518

 

 

 

-1,712

Foreign currency risk

 

 

 

 

 

 

 

 

Internal USD loan

 

405

 

-79

 

Current financial liabilities

 

-76

 

 

405

 

-79

 

 

 

-76

Total

 

90,405

 

3,439

 

 

 

-1,788

12/31/2023

EUR thousand

 

Nominal amount

 

Carrying amount

 

Item in the statement of financial position

 

Change in fair value basis for recognizing ineffectiveness

Interest rate risk

 

 

 

 

 

 

 

 

Outstanding loans

 

75,000

 

4,716

 

Current other assets

 

-4,266

Planned loans

 

15,000

 

484

 

0

 

-843

 

 

90,000

 

5,200

 

 

 

-5,109

Foreign currency risk

 

 

 

 

 

 

 

 

Internal USD loan

 

1,215

 

-158

 

Current financial liabilities

 

-145

 

 

1,215

 

-158

 

 

 

-145

Total

 

91,215

 

5,042

 

 

 

-5,254

The carrying amounts of hedging instruments correspond to the calculated fair values. At the end of the reporting period, as in the previous year, all existing hedging instruments met the criteria for cash flow hedges

The nominal amount of the interest rate and currency swaps in foreign currency as of December 31, 2024 came to USD 500 thousand (previous year: USD 1,500 thousand).

The hedged items designated in hedging relationships had the following effects on the combined statement of financial position as of the end of the reporting periods:

12/31/2024

EUR thousand

 

Change in fair value basis for recognizing ineffectiveness

 

Hedge reserve Cash flow hedges (gross)

Interest rate risk

 

 

 

 

Outstanding loans

 

1,662

 

3,303

Planned loans

 

0

 

0

 

 

1,662

 

3,303

Foreign currency risk

 

 

 

 

Internal USD loan

 

76

 

0

 

 

76

 

0

Total

 

1,738

 

3,303

12/31/2023

EUR thousand

 

Change in fair value basis for recognizing ineffectiveness

 

Hedge reserve Cash flow hedges (gross)

Interest rate risk

 

 

 

 

Outstanding loans

 

4,132

 

4,584

Planned loans

 

809

 

484

 

 

4,941

 

5,068

Foreign currency risk

 

 

 

 

Internal USD loan

 

145

 

0

 

 

145

 

0

Total

 

5,086

 

5,068

The following amounts were recognized in relation to hedging relationships:

2024

 

 

Change in fair value

 

Reclassification from OCI to P&L

 

P&L items

EUR thousand

 

Recognized in other compre­hensive income (effective portion)

 

Recognized in the statement of profit or loss (ineffective portion)

 

 

 

 

Interest rate risk

 

 

 

 

 

 

 

 

Outstanding loans

 

-1,765

 

54

 

48

 

Other operating income

Planned loans

 

0

 

0

 

0

 

 

 

 

-1,765

 

54

 

48

 

 

Foreign currency risk

 

 

 

 

 

 

 

 

Internal USD loan

 

-76

 

0

 

76

 

Other operating expenses

 

 

-76

 

0

 

76

 

 

Total

 

-1,841

 

54

 

124

 

 

2023

 

 

Change in fair value

 

Reclassification from OCI to P&L

 

P&L items

EUR thousand

 

Recognized in other compre­hensive income (effective portion)

 

Recognized in the statement of profit or loss (ineffective portion)

 

 

 

 

Interest rate risk

 

 

 

 

 

 

 

 

Outstanding loans

 

-4,168

 

-98

 

22

 

 

Planned loans

 

-843

 

0

 

0

 

 

 

 

-5,011

 

-98

 

22

 

 

Foreign currency risk

 

 

 

 

 

 

 

 

Internal USD loan

 

-145

 

0

 

151

 

Other operating expenses

 

 

-145

 

0

 

151

 

 

Total

 

-5,156

 

-98

 

173

 

 

The composition of the hedge reserve presented in note 20, including deferred taxes, breaks down by risk category and other components resulting from hedge accounting as shown in the table below.

2024 financial year

 

 

Cash flow hedge reserve

EUR thousand

 

Interest rate swaps/interest rate and currency swaps

 

Hedging costs

 

Total

Cash flow hedges

 

 

 

 

 

 

As of January 1

 

5,638

 

-42

 

5,596

Changes in fair value

 

 

 

 

 

 

Interest rate risk – outstanding loans

 

-1,765

 

0

 

-1,765

Interest rate risk – call money lines

 

0

 

0

 

0

Interest rate risk – planned loans

 

0

 

0

 

0

Foreign currency risk – internal USD loan

 

-76

 

0

 

-76

Reclassifications to profit and loss

 

 

 

 

 

 

Foreign currency risk

 

76

 

0

 

76

Deferred taxes

 

0

 

0

 

0

Change in investments in companies accounted for using the equity method

 

2,361

 

0

 

2,361

As of December 31

 

6,234

 

-42

 

6,192

2023 financial year

 

 

Cash flow hedge reserve

EUR thousand

 

Interest rate swaps/interest rate and currency swaps

 

Hedging costs

 

Total

Cash flow hedges

 

 

 

 

 

 

As of January 1

 

11,214

 

-36

 

11,178

Changes in fair value

 

 

 

 

 

 

Interest rate risk – outstanding loans

 

-4,168

 

0

 

-4,168

Interest rate risk – call money lines

 

0

 

0

 

0

Interest rate risk – planned loans

 

-843

 

0

 

-843

Foreign currency risk – internal USD loan

 

-145

 

0

 

-145

Reclassifications to profit and loss

 

 

 

 

 

 

Foreign currency risk

 

151

 

-6

 

145

Deferred taxes

 

0

 

0

 

0

Change in investments in companies accounted for using the equity method

 

-571

 

0

 

-571

As of December 31

 

5,638

 

-42

 

5,596

As the reference amounts are reduced by the repayment of the underlying loans in parallel with the loan proceeds, no gains or losses are recognized as long as the financial instruments are not sold. No sale is planned.

Cash flow
Key figure that describes the balance of cash and cash equivalent receipts and payments within the financial year.
Take a look at the glossary
Derivative financial instruments
Financial instruments that are traditionally used to hedge existing investments or liabilities and whose value is derived from a reference investment (e.g. share or bond).
Take a look at the glossary
Discounted cash flow method
Measurement method: future cash flows are discounted with the help of the cost of capital on the measurement date. Taxes due are included in the measurement. The present value determined in this way is the discounted cash flow.
Take a look at the glossary
Full consolidation
Method of accounting that involves the inclusion of subsidiaries in the combined financial statements with all assets and liabilities.
Take a look at the glossary
Hedging
A strategy of protecting against interest rate, currency and price risks through derivative financial instruments (options, swaps, forward transactions, etc.).
Take a look at the glossary
Hypothetical derivative method
Method of measuring the effectiveness of derivative financial instruments by comparing the change in market value of the derivative to that of a hypothetical derivative that optimally hedges the risk to be hedged against.
Take a look at the glossary
Other comprehensive income
All income and expenses that are not recognized in the net profit or loss for the year. This item includes, for example, foreign currency gains and losses from the translation of foreign financial statements that are reported directly in equity in accordance with IAS 21.
Take a look at the glossary

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