Allcargo Logistics Limited reported strong financial results for the quarter ending September 30, 2024, showcasing growth across key segments. LCL volume rose 4% year-on-year to 2.37 million CBM, while FCL volume increased 7% to 164,000 TEUs, driven by robust global trade. Air freight volumes reached 2.65 million kilograms, up 14% year-on-year, despite a seasonal 4% decline from the previous quarter. The Contract Logistics segment excelled with 46% revenue growth year-on-year, supported by new clients and expanded business from existing customers. EBITDA improved by 26%, reflecting cost-saving measures. With strategic initiatives and operational enhancements, Allcargo is well-positioned for continued growth amidst evolving global logistics demands.
Allcargo Logistics Limited has shared its financial results for the quarter ending September 30, 2024, highlighting significant growth across various segments. The company has seen an increase in its Less than Container Load (LCL) and Full Container Load (FCL) volumes, reflecting a positive trend in global trade and strategic initiatives undertaken by the firm.
For the quarter, LCL volume reached 2.37 million cubic metres (CBM), marking a 4% increase compared to the same quarter last year and a 5% rise from the previous quarter. Similarly, FCL volumes increased to 164,000 Twenty-foot Equivalent Units (TEUs), up 7% year-on-year and 5% from the previous quarter. This growth can be attributed to enhanced demand in international shipping, as companies adapt to changing market conditions and seek reliable logistics partners.
In the air freight sector, Allcargo reported an air volume of 2.65 million kilograms, which is a 14% increase from the same period last year. However, this figure shows a 4% decline compared to the previous quarter, indicating some seasonal fluctuations in demand. The company noted that while overall volume growth was strong, there were signs of seasonal decline across all regions towards the end of the quarter.
A standout performance was observed in the Contract Logistics segment, which reported a remarkable 46% revenue growth year-on-year and a 22% increase compared to the previous quarter. This growth is largely driven by the addition of new clients and increased business from existing customers. The logistics sector has been experiencing a shift towards outsourcing, with companies looking to streamline operations and reduce costs, benefiting Allcargo's contract logistics services.
Financially, Allcargo's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) showed a robust increase of 26% compared to the same period last year. The company has implemented various cost-saving measures that have contributed to this improvement. Notably, October 2024 marked a significant milestone for Allcargo's express business, achieving the highest monthly volume recorded at 118,000 kilograms.
Looking ahead, Allcargo Logistics aims to continue capitalising on the growing demand for logistics services, especially in the wake of increased global trade activity. The company is also focused on expanding its service offerings and enhancing operational efficiency to meet the evolving needs of its clients. With the logistics industry facing challenges such as fluctuating fuel prices and supply chain disruptions, Allcargo's strategic initiatives position it well for sustained growth in the coming quarters.
In summary, Allcargo Logistics Limited's latest financial results reflect a strong performance across its business segments, driven by increased volumes and strategic growth initiatives. As the company navigates the complexities of the logistics landscape, it remains committed to delivering value to its clients and stakeholders.
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