Like its peers in the chemical logistics sector, Den Hartogh saw a drop in income last year. It has not allowed that to derail its growth strategy
Den Hartogh has reported revenues of €603m in 2023, a sharp fall from €741m in 2022, with EBITDA falling from €98m to €67m. “After two successful and record-breaking years, we had to take a step back in 2023,” the company says. “The economic and geopolitical turmoil has dealt a severe blow to the chemical industry, and this has had a direct impact on our revenue. With overcapacity in the market, margins started to come under pressure in the second half of the year.”
Den Hartogh reduced its investments in line with the fall in earnings but still spent nearly €59m; some of this went on new tank containers for its Liquid Logistics and Global Logistics units, partly to replace leased tanks, with an overall decline in the fleet. Den Hartogh has continued to order new T-75 gas tanks and also ordered almost 800 new 30-foot dry bulk containers; it also added 20- and 40-foot bulk containers for use in the Asia-Pacific region.
“The current decrease in demand and increased supply of tank containers in the market provides the industry with a challenge in right-sizing their fleets,” the company says. “This always has been a focus for Den Hartogh, however, one it will continue to focus on in 2024 and beyond.”
WORD FROM THE TOP
Speaking about the past year, group managing director Pieter den Hartogh says: “The impact of geopolitical agendas and macro-economic headwinds in 2023 have resulted in global challenges. High inflation and lower ocean freight rates have changed the cost dynamics in the industry. It is for this reason that we have continued developing our analytics, processes and global network design to consolidate our strong position as global logistics service provider, but also to enhance our cost-effectiveness and efficiency.
“We are always committed to finding the most optimal logistics solution for our customers, which was reflected in our continued record low levels of customer complaints,” den Hartogh continues. “It shows that our service level and communication were both performing optimally, a result of our conviction that the Den Hartogh team is the key to success.”.
Further investment has been made in digital technologies, which involved the replacement of the existing transport management system to transition to a more adaptive hub-and-spoke architecture, as well as the upgrading of the supply chain visibility portal to allow the sharing of relevant information in real time.
New driver communication software has been developed to improve and enhance the communication process, giving drivers more accurate action-based instructions and a better workflow. Mission Planner had been implemented in close to half of the company’s European trucks by the end of 2023. Implementation in the remaining European trucks within the scope of the project will take place in early 2024.
Nevertheless, Pieter den Hartogh warns that the worst of the market is not yet over, though he remains optimistic. “A downturn in our financial results is expected to continue into the first half year of 2024, but a more favourable economic situation is forecasted for our industry in the second half. Fortunately, responding to the changing demands of a volatile market is in our DNA and this, in combination with our great team, makes me look forward to 2024 with confidence.”
source: https://hcblive.com/den-hartogh-red-riding-good/
