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 twelve months ended December 31, 2024.
Fourth Quarter and Full Year 2024 Highlights
- Net income for the fourth quarter was $563 million (compared to a net loss of $147 million in the fourth quarter of 2023), or diluted earnings per share of $4.664 (compared to diluted loss per share of $1.23 in the fourth quarter of 2023); net profit for the full year was $2.15 billion (compared to a loss of $2.69 billion for the full year of 2023; net loss for the full year of 2023 was primarily driven by a non-cash impairment charge of $2.06 billion).
- Adjusted EBITDA for the fourth quarter was $967 million, a year-over-year increase of 409%; Adjusted EBITDA for the full year was $3.69 billion, a year-over-year increase of 252%.
- Operating income (EBIT) for the fourth quarter was $658 million, compared to operating loss of $54 million in the fourth quarter of 2023. Operating income for the full year of 2024 was $2.53 billion, compared to operating loss of $2.51 billion for the full year of 2023.
- Adjusted EBIT for the fourth quarter was $658 million, compared to Adjusted EBIT loss of $49 million in the fourth quarter of 2023. Adjusted EBIT for the full year of 2024 was $2.55 billion, compared to Adjusted EBIT loss of $422 million for the full year of 2023.
- Revenues for the fourth quarter were $2.17 billion, a year-over-year increase of 80%; revenues for the full year were $8.43 billion, a year-over-year increase of 63%.
- Carried volume in the fourth quarter was 982 thousand TEUs, a year-over-year increase of 25%; carried volume in the full year was 3,751 thousand TEUs, a year-over-year increase of 14%.
- Average freight rate per TEU in the fourth quarter was $1,886, a year-over-year increase of 71%; average freight rate per TEU in the full year was $1,888, a year-over-year increase of 57%.
- Net leverage ratio1 of 0.8x at December 31, 2024, compared to 2.2x as of December 31, 2023; net debt1 of $2.88 billion as of December 31, 2024, compared to net debt of $2.31 billion as of December 31, 2023.
Eli Glickman, ZIM President & CEO, stated, “We are pleased and proud with the Company’s outstanding performance in 2024, during which we delivered record carried volume as well as exceptional profitability. Based on our continued progress upscaling our capacity and optimizing our cost structure, we reported our best results ever, excluding the extraordinary COVID period. Consistent with our commitment to returning capital to shareholders, the dividend declared today, together with the dividends distributed during 2024, total $7.98 per share, or $961 million, representing approximately 45% of our full year net income.”
Mr. Glickman added, “The benefits of our fleet transformation were evident throughout 2024 and reflected in our strong financial results, as well as volume growth that far outpaced the overall market. With larger vessels well-poised to meet emissions reduction targets and tailored to the trades in which we operate, we increased carried volumes 14% year-over-year, compared to average market growth of approximately 6%, while delivering superior margins. Driving our market share gains was the new capacity deployed on the Asia to U.S. East Coast trade, the successful expedited services to the U.S. West Coast, and our expanded presence in Latin America.”
Mr. Glickman concluded, “We enter 2025 with a more resilient business and modern cost- and fuel-efficient capacity, 40% of which is LNG-fueled. While acknowledging that our industry is highly volatile, exacerbated by current uncertainty related to geopolitics, international political dynamics and economic, fiscal and monetary policies, we are confident in our agile approach and competitive position in the industry. Our 2025 outlook of Adjusted EBITDA between $1.6 billion and $2.2 billion and Adjusted EBIT between $350 million and $950 million assumes trade conditions in the Red Sea will not normalize until the second half of the year at the earliest.”
Financial and Operating Results for the Fourth Quarter Ended December 31, 2024
Total revenues were $2.17 billion for the fourth quarter of 2024, compared to $1.21 billion for the fourth quarter of 2023, mainly driven by the increase in freight rates and carried volume.
ZIM carried 982 thousand TEUs in the fourth quarter of 2024, compared to 786 thousand TEUs in the fourth quarter of 2023. The average freight rate per TEU was $1,886 for the fourth quarter of 2024, compared to $1,102 for the fourth quarter of 2023.
Operating income (EBIT) for the fourth quarter of 2024 was $658 million, compared to operating loss of $54 million for the fourth quarter of 2023. The increase was driven primarily by the above-mentioned increase in revenues.
Net income for the fourth quarter of 2024 was $563 million, compared to net loss of $147 million for the fourth quarter of 2023, also mainly driven by the above-mentioned increase in revenues.
Adjusted EBITDA for the fourth quarter of 2024 was $967 million, compared to $190 million for the fourth quarter of 2023. Adjusted EBIT was $658 million for the fourth quarter of 2024, compared to Adjusted EBIT loss of $49 million for the fourth quarter of 2023. Adjusted EBITDA and Adjusted EBIT margins for the fourth quarter of 2024 were 45% and 30%, respectively. This compares to 16% and -4% for the fourth quarter of 2023, respectively.
Net cash generated from operating activities was $1.15 billion for the fourth quarter of 2024, compared to $162 million for the fourth quarter of 2023.
Financial and Operating Results for the Full Year Ended December 31, 2024
Total revenues were $8.43 billion for the full year of 2024, compared to $5.16 billion for the full year of 2023, driven primarily by an increase in freight rates and carried volume.
ZIM carried 3,751 thousand TEUs in the full year of 2024, compared to 3,281 thousand TEUs in the full year of 2023. The average freight rate per TEU was $1,888 for the full year of 2024, compared to $1,203 for the full year of 2023.
Operating income (EBIT) for the full year of 2024 was $2.53 billion, compared to operating loss of $2.51 billion for the full year of 2023. The increase was primarily driven by the above-mentioned increase in revenues and the impairment charge recorded in 2023.
Net income for the full year of 2024 was $2.15 billion, compared to net loss of $2.69 billion for the full year of 2023, driven mainly by the above-mentioned increase in revenues and the impairment charge recognized in 2023.
Adjusted EBITDA was $3.69 billion for the full year of 2024, compared to $1.05 billion for the full year of 2023. Adjusted EBIT was $2.55 billion for the full year of 2024, compared to Adjusted EBIT loss of $422 million for the full year of 2023. Adjusted EBITDA and Adjusted EBIT margins for the full year of 2024 were 44% and 30%, respectively. This compares to Adjusted EBITDA and Adjusted EBIT margins of 20% and -8% for the full year of 2023, respectively.
Net cash generated from operating activities was $3.75 billion for the full year of 2024, compared to $1.02 billion for the full year 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 $451 million from $2.69 billion as of December 31, 2023 to $3.14 billion as of December 31, 2024. Capital expenditures totaled $214 million for the year ended December 31, 2024, compared with $116 million for the year ended December 31, 2023. Net debt position as of December 31, 2024, was $2.88 billion compared to a net debt position of $2.31 billion as of December 31, 2023, an increase of $567 million. ZIM’s net leverage ratio as of December 31, 2024, was 0.8x, compared to 2.2x as of December 31, 2023.
Fourth Quarter 2024 Dividend
In accordance with the Company’s dividend policy, the Company’s Board of Directors declared a regular cash dividend of approximately $382 million, or $3.17 per ordinary share. Together with prior dividend distributions made in respect to the full year of 2024 (including the special dividend paid in December 2024), dividend distributions for the year totaled $961 million, or $7.98 per ordinary share, reflecting approximately 45% of 2024 net income. The dividend will be paid on April 3, 2025, to holders of record of ZIM ordinary shares as of March 24, 2025.
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 2025 Guidance
A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2025 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.
Full-Year 2025 Guidance
In 2025, the Company expects to generate Adjusted EBITDA between $1.6 billion and $2.2 billion and Adjusted EBIT between $350 million and $950 million.
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 (TF) +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: 8260105 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.
Annual Report on Form 20-F for 2024
In accordance with Section 203.01 of the New York Stock Exchange Listed Company Manual, the Company’s Annual Report filed with the U.S. Securities and Exchange Commission on a on Form 20-F (including its audited 2024 financial statements) is available on the Company’s website at www.zim.com. Hard copies of the Annual Report will be provided free of charge upon request, from the Company, as follows: ZIM Integrated Shipping Services Ltd., 9 Andrei Sakharov Street, P.O. Box 15067, Matam, Haifa 3190500, Israel, Attn: Head of Investor Relations, Finance Function, Email: investors@zim.com, Tel: +972-4-865-2000 (General), +972-4-865-2300 (Direct).
