ZIM Integrated Shipping Services Smashes Records in Q4 2024 Results
ZIM Integrated Shipping Services (ZIM) has made history with its exceptional performance in Q4 2024, shattering records and achieving outstanding financial results. In a recent conference call, the company's CEO, Eli Glickman, shared the impressive numbers, highlighting a third consecutive quarter of record carried volumes and double-digit volume growth for the year.
According to the report, ZIM achieved its best results ever outside of the extraordinary revenue generated during the COVID period. The company's net income reached $2.2 billion, with revenue totaling $8.4 billion. Adjusted EBITDA was a staggering $3.7 billion, while adjusted EBIT came in at $2.5 billion, boasting an impressive 44% and 30% adjusted EBITDA and adjusted EBIT margin respectively.
The company's commitment to returning significant capital to shareholders was also showcased during the call. ZIM declared a dividend of $3.17 per share, totaling $382 million. This brought the total dividend payout for 2024 results, including the special dividend paid in December '24, to $7.98 per share or $961 million, representing approximately 45% of '24 annual net income.
CEO Eli Glickman expressed pride in the company's track record and commitment to consistently paying dividends based on strong earnings. He also highlighted ZIM's confidence in its strategy and competitive position in the industry, providing guidance for 2025, with adjusted EBITDA expected to range between $1.6 billion and $2.2 billion and adjusted EBIT between $350 million and $950 million.
The company acknowledged the increased uncertainty in the business environment due to various external factors such as geopolitics, international and U.S. domestic political dynamics, economic, monetary, and fiscal policies. However, despite these challenges, ZIM remains optimistic about its future prospects.
As part of its operational progress in 2024, ZIM upscaled its capacity and enhanced its cost structure. The company received the final four newbuild container ships, including 28 LNG-powered vessels, which will result in a more fuel-efficient and cost-efficient fleet overall. With 40% of its capacity now being LNG-powered, ZIM remains an early adopter and leader in this area.
The impressive Q4 results demonstrate ZIM's commitment to delivering exceptional performance and strong financials, while also prioritizing the needs of its shareholders and customers. As the company looks ahead to 2025, it is clear that ZIM Integrated Shipping Services will continue to be a major player in the industry.
