ZIM Integrated Shipping Services Ltd. (ZIM) has posted its financial results for Q4 and full year 2021.
In the fourth quarter of 2021, the company’s revenues totalled $3.47 billion, up from $1.36 billion in Q4 2020. This success was primarily driven by an increase in volumes and freight rates.
EBIT for the final three months of last year was $2.12 billion, up considerably from $439 million in the same period in 2020. Operating margin for the quarter was 61 per cent, compared to 32 per cent in Q4 2020.
Net income in the quarter amounted to $1.71 billion, compared to $366 million in Q4 2020. This included a tax expense of $374 million.
Adjusted EBITDA came to $2.36 billion, compared to $531 million for the fourth quarter of 2020. Adjusted EBIT was $2.11 billion, compared to $440 million in Q4 2020.
Adjusted EBITDA and adjusted EBIT margins for the quarter were 68 per cent and 61 per cent respectively.
Net cash generated from operating activities was $2 billion in the final quarter of 2021, compared to $414 million in Q4 2020.
ZIM also carried a total of 858,0000 TEU in this quarter, compared to 799,000 TEU in the same period the previous year.
Total revenues were $10.73 billion for the full year of 2021, compared to $3.99 billion in 2020.
EBIT for the year was reported to be $5.82 billion, up from $722 million in 2020. The operating margin for the full year was 54 per cent, up from 18 per cent the previous year.
Net income for the full year was $4.65 billion, up significantly from $524 million in 2020. This also included a tax expense of $1.01 billion.
ZIM’s adjusted EBITDA amounted to $6.60 billion in 2021, compared to $1.04 billion in 2020. Adjusted EBIT was $5.82 billion, up from $729 million in 2020.
Adjusted EBITDA and adjusted EBIT margins were 61 per cent and 54 per cent respectively in 2021.
Net cash generated from operating activities was $5.97 billion, compared to $881 million in 2020.
Lastly, ZIM carried 3,481,000 TEU in 2021, a big increase on the 2,841,000 TEU the previous year.
For the next year, the company expects to generate adjusted EBITDA of between $7.1 billion and $7.5 billion and adjusted EBIT in the range of $5.6 billion and $6 billion.
Some of ZIM’s operational highlights from 2021 include:
- The launch of its digital freight forwarding platform – Ship4wd
- The launch of its next-generation scanning solution for the logistics and supply chain sectors – ZIMark
- Its joint investment with Marius Nacht in WAVE BL.
“In our first year as the only global container liner listed on New York Stock Exchange, ZIM has achieved historically extraordinary results and executed on commitments made during our IPO process,” said Eli Glickman, President and CEO of ZIM.
“ZIM’s agility and proactive strategies enabled us to unlock significant shareholder value during a time of unique and unprecedented challenges.
“With another quarter of exceptional financial performance, we generated our highest ever full year of revenues, adjusted EBITDA, net profit, and operating cash flows, while once again delivering industry-leading margins. We also ended the year with a net positive cash position and strong financial flexibility.”
“Given our outstanding cash generation in 2021, we decisively allotted capital to support our customers as we strive to provide best-in-class service.
“Importantly, we made sizable investments in equipment to facilitate the movement of cargoes for customers, as well as meaningfully expanded our operating fleet capacity and launched 17 new lines since June 2020, resulting in ZIM’s year-over-year carried volume tripling the global volume growth rate.
“Today, ZIM is commercially and operationally stronger than ever making us more optimistic about our future than ever before. We are excited to carry the exceptional momentum of 2021 forward into 2022, and well beyond.”