Technology

Yatsen Announces Third Quarter 2024 Financial Results

Published

2 hours ago

November 20, 2024

Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on November 20, 2024

GUANGZHOU, China, Nov. 20, 2024 /PRNewswire/ — Yatsen Holding Limited (“Yatsen” or the “Company”) (NYSE: YSG), a leading China-based beauty group, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

Total net revenues for the third quarter of 2024 decreased by 5.7% to RMB677.0 million (US$96.5 million) from RMB718.1 million for the prior year period.Total net revenues from Skincare Brands[1] for the third quarter of 2024 increased by 3.6% to RMB267.9 million (US$38.2 million) from RMB258.5 million for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the third quarter of 2024 were 39.6%, as compared with 36.0% for the prior year period.Gross margin for the third quarter of 2024 increased to 75.9% from 71.4% for the prior year period.Net loss for the third quarter of 2024 was RMB121.1 million (US$17.3 million), as compared with RMB197.9 million for the prior year period. Non-GAAP net loss[2] for the third quarter of 2024 was RMB76.6 million (US$10.9 million), as compared with RMB130.2 million for the prior year period.

Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, “China’s beauty industry encountered significant challenges in the third quarter, with beauty sales declining year over year for four consecutive months from June to September. Against this backdrop, our three major clinical and premium skincare brands, including Galénic, DR.WU and Eve Lom, delivered another solid performance, bolstering our skincare segment overall. Going forward, we will continue to execute our development strategy, enhancing brand equity and product mix while further optimizing our cost structure to drive growth and profitability.”

Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, “Our third quarter total net revenues declined by 5.7% year over year in line with our previous guidance. However, our three major skincare brands together continued to grow steadily, with combined net revenues increasing by 10.5% year over year. Furthermore, we improved our gross margin to 75.9% from 71.4% in the prior year period, while narrowing our net loss margin and non-GAAP net loss margin to 17.9% and 11.3%, respectively. We remain confident in our strategy and execution capabilities, and committed to propelling the Company’s sustainable development.”

Third Quarter 2024 Financial Results

Net Revenues

Total net revenues for the third quarter of 2024 decreased by 5.7% to RMB677.0 million (US$96.5 million) from RMB718.1 million for the prior year period. The decrease was primarily due to a 10.0% year-over-year decrease in net revenues from Color Cosmetics Brands,[3] partially offset by a 3.6% year-over-year increase in net revenues from Skincare Brands.

Gross Profit and Gross Margin

Gross profit for the third quarter of 2024 increased by 0.2% to RMB513.8 million (US$73.2 million) from RMB512.8 million for the prior year period. Gross margin for the third quarter of 2024 increased to 75.9% from 71.4% for the prior year period. The increase was primarily driven by an increase in sales of higher-gross-margin products.

Operating Expenses

Total operating expenses for the third quarter of 2024 decreased by 12.0% to RMB655.2 million (US$93.4 million) from RMB744.3 million for the prior year period. As a percentage of total net revenues, total operating expenses for the third quarter of 2024 were 96.8%, as compared with 103.6% for the prior year period.

Fulfillment Expenses. Fulfillment expenses for the third quarter of 2024 were RMB50.4 million (US$7.2 million), as compared with RMB56.0 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the third quarter of 2024 decreased to 7.4% from 7.8% for the prior year period. The decrease was primarily due to an increase in the overall average selling price of the Company’s products, as well as further improvements in logistics efficiency.

Selling and Marketing Expenses. Selling and marketing expenses for the third quarter of 2024 were RMB494.4 million (US$70.4 million), as compared with RMB511.7 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the third quarter of 2024 increased to 73.0% from 71.3% for the prior year period. The increase was primarily due to increased investments in the Douyin platform, in line with the growing revenue contribution from Douyin, partially offset by lower marketing expenses as a result of the Company’s more strategic marketing spending.

General and Administrative Expenses. General and administrative expenses for the third quarter of 2024 were RMB85.0 million (US$12.1 million), as compared with RMB151.8 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the third quarter of 2024 decreased to 12.6% from 21.1% for the prior year period. The decrease was primarily attributable to lower payroll expenses resulting from a reduction in general and administrative headcount and lower share-based compensation expenses.

Research and Development Expenses. Research and development expenses for the third quarter of 2024 were RMB25.3 million (US$3.6 million), as compared with RMB24.7 million for the prior year period. As a percentage of total net revenues, research and development expenses for the third quarter of 2024 increased to 3.7% from 3.4% for the prior year period. The increase was primarily attributable to the deleveraging effect of lower total net revenues in the third quarter of 2024.

Loss from Operations

Loss from operations for the third quarter of 2024 was RMB141.3 million (US$20.1 million), as compared with RMB231.5 million for the prior year period. Operating loss margin was 20.9%, as compared with 32.2% for the prior year period.

Non-GAAP loss from operations[4] for the third quarter of 2024 was RMB98.5 million (US$14.0 million), as compared with RMB164.6 million for the prior year period. Non-GAAP operating loss margin was 14.5%, as compared with 22.9% for the prior year period.

Net Loss

Net loss for the third quarter of 2024 was RMB121.1 million (US$17.3 million), as compared with RMB197.9 million for the prior year period. Net loss margin was 17.9%, as compared with 27.6% for the prior year period. Net loss attributable to Yatsen’s ordinary shareholders per diluted ADS[5] for the third quarter of 2024 was RMB1.22 (US$0.17), as compared with RMB1.81 for the prior year period.

Non-GAAP net loss for the third quarter of 2024 was RMB76.6 million (US$10.9 million), as compared with RMB130.2 million for the prior year period. Non-GAAP net loss margin was 11.3%, as compared with 18.1% for the prior year period. Non-GAAP net loss attributable to Yatsen’s ordinary shareholders per diluted ADS[6] for the third quarter of 2024 was RMB0.77 (US$0.11), as compared with RMB1.19 for the prior year period.

Balance Sheet and Cash Flow

As of September 30, 2024, the Company had cash, restricted cash and short-term investments of RMB1.31 billion (US$186.5 million), as compared with RMB2.08 billion as of December 31, 2023.

Net cash used in operating activities for the third quarter of 2024 was RMB175.9 million (US$25.1 million), as compared with RMB163.4 million for the prior year period.

Business Outlook

For the fourth quarter of 2024, the Company expects its total net revenues to be between RMB1.07 billion and RMB1.18 billion, representing a year-over-year increase of approximately 0% to 10%. These forecasts reflect the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Exchange Rate

This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of September 30, 2024, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

[1] Include net revenues from Galénic, DR.WU (its mainland China business), Eve Lom and other skincare brands of the Company.

[2] Non-GAAP net loss is a non-GAAP financial measure. Effective from the fourth quarter of 2023, non-GAAP net loss is defined as net loss excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments. Non-GAAP net loss for the prior year period presented in this document is also calculated in the same manner.

[3] Include Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands of the Company.

[4] Non-GAAP loss from operations is a non-GAAP financial measure. Effective from the fourth quarter of 2023, non-GAAP loss from operations is defined as loss from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. Non-GAAP loss from operations for the prior year period presented in this document is also calculated in the same manner.

[5] ADS refers to American depositary shares, each of which represents twenty Class A ordinary shares, effective from March 18, 2024. Prior to that date, each ADS represented four Class A ordinary shares. Unless otherwise stated, the current ADS ratio has been applied retrospectively to all periods presented in this document.

[6] Non-GAAP net loss attributable to ordinary shareholders per diluted ADS is a non-GAAP financial measure. Non-GAAP net loss attributable to ordinary shareholders per diluted ADS is defined as non-GAAP net loss attributable to ordinary shareholders divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Effective from the fourth quarter of 2023, non-GAAP net loss attributable to ordinary shareholders is defined as net loss attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests. Non-GAAP net loss attributable to ordinary shareholders per diluted ADS for the prior year period presented in this document is also calculated in the same manner.

Conference Call Information

The Company’s management will hold a conference call on Wednesday, November 20, 2024, at 7:30 A.M. U.S. Eastern Time or 8:30 P.M. Beijing Time to discuss its financial results and operating performance for the third quarter 2024.

United States (toll free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (toll free):

400-120-1203

Hong Kong, SAR (toll free):

800-905-945

Hong Kong, SAR:

+852-3018-4992

Conference ID:

6604822

The replay will be accessible through Wednesday, November 27, by dialing the following numbers:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:

6604822

A live and archived webcast of the conference call will also be available on the Company’s investor relations website at http://ir.yatsenglobal.com.

About Yatsen Holding Limited

Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the mission of creating an exciting new journey of beauty discovery for consumers around the world. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), Eve Lom and EANTiM. The Company’s flagship brand, Perfect Diary, is one of the leading color cosmetics brands in China in terms of retail sales value. The Company primarily reaches and engages with customers directly both online and offline, with expansive presence across all major e-commerce, social and content platforms in China.

For more information, please visit http://ir.yatsenglobal.com.

Use of Non-GAAP Financial Measures

The Company uses non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) attributable to ordinary shareholders and non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS, each a non-GAAP financial measure, in reviewing and assessing its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents these non-GAAP financial measures because they are used by the management to evaluate operating performance and formulate business plans. Non-GAAP financial measures help identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. The Company defines non-GAAP net income (loss) as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill and (v) tax effects on non-GAAP adjustments. The Company defines non-GAAP net income (loss) attributable to ordinary shareholders as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) tax effects on non-GAAP adjustments and (vi) accretion to redeemable non-controlling interests. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is computed using non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

However, the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with U.S. GAAP and may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Yatsen’s non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs, plans, outlook and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to continue to roll out popular products and maintain popularity of existing products; its ability to anticipate and respond to changes in industry trends and consumer preferences and behavior in a timely manner; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; its ability to integrate newly-acquired businesses and brands; trends and competition in and relevant government policies and regulations relating to China’s beauty market; changes in its revenues and certain cost or expense items; and general economic conditions globally and in China. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Yatsen Holding Limited
Investor Relations
E-mail: ir@yatsenglobal.com

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: yatsen@thepiacentegroup.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: yatsen@thepiacentegroup.com

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data or otherwise noted)

December 31,

September 30,

2023

2024

RMB’000

USD’000

Assets

Current assets

Cash and cash equivalents

836,888

503,075

71,688

Restricted Cash

21,248

–

Short-term investments

1,218,481

805,851

114,833

Accounts receivable, net

198,851

208,285

29,680

Inventories, net

352,090

438,419

62,474

Prepayments and other current assets

303,841

431,583

61,500

Amounts due from related parties

20,200

7,181

1,023

Total current assets

2,951,599

2,394,394

341,198

Non-current assets

Investments

618,752

628,355

89,540

Property and equipment, net

64,878

72,315

10,305

Goodwill, net

556,567

571,129

81,385

Intangible assets, net

671,396

638,079

90,926

Deferred tax assets

1,375

1,426

203

Right-of-use assets, net

114,348

129,303

18,426

Other non-current assets

27,100

25,728

3,666

Total non-current assets

2,054,416

2,066,335

294,451

Total assets

5,006,015

4,460,729

635,649

Liabilities, redeemable non-controlling interests and
shareholders’ equity

Current liabilities

Accounts payable

105,691

70,781

10,086

Advances from customers

41,579

31,604

4,504

Accrued expenses and other liabilities

391,217

392,448

55,923

Amounts due to related parties

9,431

14,832

2,114

Income tax payables

17,946

19,112

2,723

Lease liabilities due within one year

45,464

47,484

6,766

Total current liabilities

611,328

576,261

82,116

Non-current liabilities

Deferred tax liabilities

111,591

111,972

15,956

Deferred income-non current

30,556

18,401

2,622

Lease liabilities

67,767

83,042

11,833

Total non-current liabilities

209,914

213,415

30,411

Total liabilities

821,242

789,676

112,527

Redeemable non-controlling interests

51,466

49,737

7,087

Shareholders’ equity

Ordinary Shares (US$0.00001 par value; 10,000,000,000 ordinary
shares authorized, comprising of 6,000,000,000 Class A ordinary
shares, 960,852,606 Class B ordinary shares and 3,039,147,394
shares each of such classes to be designated as of December 31,
2023 and September 30, 2024; 2,030,600,883 Class A shares and
666,572,880 Class B ordinary shares issued as of December 31,
2023, 2,096,600,883 Class A shares and 600,572,880 Class B
ordinary shares issued as of September 30, 2024; 1,487,546,132
Class A ordinary shares and 666,572,880 Class B ordinary shares
outstanding as of December 31, 2023, 1,370,591,808 Class A
ordinary shares and 600,572,880 Class B ordinary shares
outstanding as of September 30, 2024)

173

Treasury shares

(864,568)

(1,066,199)

(151,932)

Additional paid-in capital

12,260,208

12,263,026

1,747,467

Statutory reserve

24,177

3,445

Accumulated deficit

(7,345,153)

(7,669,093)

(1,092,837)

Accumulated other comprehensive income

60,200

76,710

10,933

Total Yatsen Holding Limited shareholders’ equity

4,135,037

3,628,794

517,101

Non-controlling interests

(1,730)

(7,478)

(1,066)

Total shareholders’ equity

4,133,307

3,621,316

516,035

Total liabilities, redeemable non-controlling interests and
shareholders’ equity

5,006,015

4,460,729

635,649

YATSEN HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except for share, per share data or otherwise noted)

For the Three Months Ended September 30,

2023

2024

RMB’000

USD’000

Total net revenues

718,125

677,016

96,474

Total cost of revenues

(205,325)

(163,191)

(23,255)

Gross profit

512,800

513,825

73,219

Operating expenses:

Fulfilment expenses

(56,025)

(50,412)

(7,184)

Selling and marketing expenses

(511,706)

(494,357)

(70,445)

General and administrative expenses

(151,830)

(85,046)

(12,119)

Research and development expenses

(24,739)

(25,338)

(3,611)

Total operating expenses

(744,300)

(655,153)

(93,359)

Loss from operations

(231,500)

(141,328)

(20,140)

Financial income

30,319

7,722

1,100

Foreign currency exchange gain

1,800

12,825

1,828

Loss from equity method investments, net

(6,655)

(6,510)

(928)

Other income, net

8,780

6,239

889

Loss before income tax expenses

(197,256)

(121,052)

(17,251)

Income tax expenses

(654)

(4)

(1)

Net loss

(197,910)

(121,056)

(17,252)

Net loss (income) attributable to non-controlling interests and
redeemable non-controlling interests

1,371

(11)

(2)

Net loss attributable to Yatsen’s shareholders

(196,539)

(121,067)

(17,254)

Shares used in calculating loss per share (1):

Weighted average number of Class A and Class B ordinary shares:

Basic

2,173,360,208

1,986,538,509

Diluted

2,173,360,208

1,986,538,509

Net loss per Class A and Class B ordinary share

Basic

(0.09)

(0.06)

(0.01)

Diluted

(0.09)

(0.06)

(0.01)

Net loss per ADS (20 ordinary shares equal to 1 ADS) (2)

Basic

(1.81)

(1.22)

(0.17)

Diluted

(1.81)

(1.22)

(0.17)

For the Three Months Ended September 30,

2023

2024

Share-based compensation expenses are included in the
operating expenses as follows:

RMB’000

USD’000

Fulfilment expenses

767

252

Selling and marketing expenses

9,485

2,289

326

General and administrative expenses

42,635

23,743

3,383

Research and development expenses

763

109

Total

52,911

27,047

3,854

(1) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each
Class A ordinary share being entitled to one vote and each Class B ordinary share being entitled to twenty votes on all matters
that are subject to shareholder vote.

(2) Effective from March 18, 2024, the Company changed its ADS to Class A Ordinary Share ratio from one ADS representing
four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have
been adjusted retroactively for all periods presented to reflect this change.

YATSEN HOLDING LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share, per share data or otherwise noted)

For the Three Months Ended September 30,

2023

2024

RMB’000

USD’000

Loss from operations

(231,500)

(141,328)

(20,140)

Share-based compensation expenses

52,911

27,047

3,854

Amortization of intangible assets resulting from assets and
business acquisitions

13,956

15,779

2,248

Non-GAAP loss from operations

(164,633)

(98,502)

(14,038)

Net loss

(197,910)

(121,056)

(17,252)

Share-based compensation expenses

52,911

27,047

3,854

Amortization of intangible assets resulting from assets and
business acquisitions

13,956

15,779

2,248

Revaluation of investments on the share of equity method
investments

3,227

3,266

465

Tax effects on non-GAAP adjustments

(2,430)

(1,586)

(226)

Non-GAAP net loss

(130,246)

(76,550)

(10,911)

Net loss attributable to Yatsen’s shareholders

(196,539)

(121,067)

(17,254)

Share-based compensation expenses

52,911

27,047

3,854

Amortization of intangible assets resulting from assets and
business acquisitions

13,701

15,385

2,192

Revaluation of investments on the share of equity method
investments

3,227

3,266

465

Tax effects on non-GAAP adjustments

(2,430)

(1,559)

(222)

Non-GAAP net loss attributable to Yatsen’s shareholders

(129,130)

(76,928)

(10,965)

Shares used in calculating loss per share:

Weighted average number of Class A and Class B ordinary shares:

Basic

2,173,360,208

1,986,538,509

Diluted

2,173,360,208

1,986,538,509

Non-GAAP net loss attributable to ordinary shareholders per
Class A and Class B ordinary share

Basic

(0.06)

(0.04)

(0.01)

Diluted

(0.06)

(0.04)

(0.01)

Non-GAAP net loss attributable to ordinary shareholders per
ADS (20 ordinary shares equal to 1 ADS) (1)

Basic

(1.19)

(0.77)

(0.11)

Diluted

(1.19)

(0.77)

(0.11)

(1) Effective from March 18, 2024, the Company changed its ADS to Class A Ordinary Share ratio from one ADS representing
four ordinary shares to one ADS representing twenty ordinary shares. The historical and present income (loss) per ADS have
been adjusted retroactively for all periods presented to reflect this change.

View original content:https://www.prnewswire.com/news-releases/yatsen-announces-third-quarter-2024-financial-results-302311003.html

SOURCE Yatsen Holding Limited

Technology

Garmin’s revolutionary Runway Occupancy Awareness technology honored with prestigious Laureate Award

Published

1 minute ago

November 20, 2024

For 67 years, Aviation Week Network’s annual Laureate Awards have recognized extraordinary innovations and achievements in the aviation industry

OLATHE, Kan., Nov. 20, 2024 /PRNewswire/ — Garmin (NYSE: GRMN) today announced that its Runway Occupancy Awareness (ROA) technology received a Laureate Award in the Business Aviation category from Aviation Week Network. Utilizing the Surface Indications and Alert (SURF-IA) technology and ADS-B traffic monitoring, ROA is the first certified solution designed to help pilots navigate complex airports and avoid potential runway incursions caused by nearby airborne aircraft, aircraft on the ground and ground vehicles. This year’s Laureate Awards Ceremony will take place on March 6, 2025, in Washington, D.C.

“We are honored to be recognized by Aviation Week Network with this prestigious Laureate Award for Runway Occupancy Awareness. Garmin’s commitment to innovation and safety is the driving force to continually create revolutionary technologies like ROA that can reduce the risk of runway incursions and help provide confidence for pilots navigating busy and complex airports.” –Carl Wolf, Garmin Vice President Aviation Sales, Marketing & Programs

ROA technology analyzes aircraft GPS and ADS-B traffic information relevant to the airport’s runways and taxiways to assess and alert the crew of a possible runway incursion or collision. ROA provides visual crew-alerting system (CAS) caution and warning annunciations on the pilot’s primary flight display (PFD) and highlights the runway yellow or red, depending on the level of threat, using Garmin’s Synthetic Vision Technology (SVT™). It also provides similar caution and warning annunciations on the SafeTaxi® map displayed simultaneously on the multifunction window.

Both visual and aural alerts are provided to the flight crew based on the potential hazard, ranging from no immediate collision hazard to a warning level alert where a collision risk could occur within 15 seconds. Indications and alerts to the flight crew include: any traffic landing, taking off, stopped, or taxiing on the aircraft’s runway; traffic on approach to the aircraft’s runway or runway that crosses the aircraft’s runway; as well as any traffic on the runway at which the aircraft is holding.

The initial FAA certification was received by Textron Aviation on the G1000® NXi-equipped Cessna Caravan, followed by Garmin’s certification for ROA in their G5000® STC covering the Cessna Citation Excel, XLS, XLS+ and XLS Gen2. ROA is initially available on select Garmin Integrated Flight Decks ranging from G1000 NXi to G5000 equipped aircraft serving the broad general and business aviation markets. To learn more about Garmin’s award-winning ROA technology, visit Garmin.com/Aviation.

Garmin products and services have revolutionized flight and become essential to the lives of pilots and aircraft owners and operators around the world. A leading provider of solutions to general aviation, business aviation, rotorcraft, advanced air mobility, government and defense, and commercial air carrier customers, Garmin believes every day is an opportunity to innovate. Recipient of the prestigious Robert J. Collier Trophy for Garmin Autoland, Garmin developed the world’s first certified autonomous system that activates during an emergency to control and land an aircraft without human intervention. Visit the Garmin Newsroom, email our media team, connect with @garminaviation on social, or follow our blog.

About Garmin International, Inc. Garmin International, Inc. is a subsidiary of Garmin Ltd. (NYSE: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. Garmin, SafeTaxi, G1000 and G5000 are registered trademarks and SVT is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 30, 2023, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at https://www.garmin.com/en-US/company/investors/earnings/. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Media Contact:
Mikayla Minnick
913-397-8200
media.relations@garmin.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/garmins-revolutionary-runway-occupancy-awareness-technology-honored-with-prestigious-laureate-award-302311030.html

SOURCE Garmin International, Inc.

Technology

ZIM Reports Financial Results for the Third Quarter of 2024; Raises Full Year 2024 Guidance

Published

1 minute ago

November 20, 2024

Reported Revenues of $2.77 Billion, Net Income of $1.13 Billion, Adjusted EBITDA1 of $1.53 Billion and Adjusted EBIT of $1.24 Billion2; Achieved Adjusted EBITDA and Adjusted EBIT Margins of 55% and 45%, Respectively

Achieved 12% Volume Growth YOY with Record Carried Volume of 970 Thousand TEUs in Q3 2024

Increased Full Year 2024 Guidance to Adjusted EBITDA of $3.3 Billion to $3.6 Billion and Adjusted EBIT of $2.15 Billion to $2.45 Billion3

Declared Increased Dividend of ~$440 million, Comprised of a Regular Dividend of ~$340 Million, or 30% of Q3 Net Income, Plus Special Dividend of ~$100 Million; Per Share Distribution: $3.65 Per Share, Reflecting Regular Dividend of $2.81 Per Share Plus Special Dividend of $0.84 Per Share

HAIFA, Israel, Nov. 20, 2024 /PRNewswire/ — 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 nine months ended September 30, 2024.

Third Quarter 2024 Highlights

Net income for the third quarter was $1.13 billion (compared to a net loss of $2.27 billion in the third quarter of 20234), or diluted earnings per share of $9.345 (compared to diluted loss per share of $18.90 in the third quarter of 2023).Adjusted EBITDA1 for the third quarter was $1.53 billion, a year-over-year increase of 626%.Operating income (EBIT) for the third quarter was $1.23 billion, compared to operating loss of $2.28 billion in the third quarter of 2023.Adjusted EBIT1 for the third quarter was $1.24 billion, compared to Adjusted EBIT loss of $213 million in the third quarter of 2023.Total revenues for the third quarter were $2.77 billion, a year-over-year increase of 117%.Carried volume in the third quarter was 970 thousand TEUs, a year-over-year growth of 12%.Average freight rate per TEU in the third quarter was $2,480, a year-over-year increase of 118%.Net debt1 of $2.70 billion as of September 30, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio1 of 0.9x as of September 30, 2024, compared to 2.2x as of December 31, 2023.

Eli Glickman, ZIM President & CEO, stated, “ZIM delivered strong third quarter results, as we again achieved record carried volumes contributing to our outstanding financial performance. We are pleased to share our success with our shareholders and declare a special dividend of ~$100 million on top of the regular 30% of quarterly net income dividend payout of ~$340 million, for a total dividend of ~$440 million, or $3.65 per share. Our growing earnings power is reflective of a strong rate environment, but also a testament to our diligent execution, upscaling our capacity and enhancing our cost structure. We’ve continued to see incremental benefits from our strategic investment in our operated capacity as new larger, more modern, cost-effective vessels join our fleet.”

Mr. Glickman added, “Also contributing to our strong Q3 was a decision we made earlier in the year to increase our exposure to spot volumes in the Transpacific trade. A key differentiator for ZIM is our commercial agility and we intend to continue to leverage this strength to capitalize on market opportunities moving forward. Based on results that have exceeded expectations to date and improved outlook for the fourth quarter of 2024, we have increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between $3.3 billion and $3.6 billion and Adjusted EBIT between $2.15 billion and $2.45 billion.”

Mr. Glickman concluded, “We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.”

Summary of Key Financial and Operational Results

Q3-24

Q3-23

9M-24

9M-23

Carried volume (K-TEUs)………………………….

970

867

2,768

2,496

Average freight rate ($/TEU)………………………

2,480

1,139

1,889

1,235

Total revenues ($ in millions)……………………..

2,765

1,273

6,260

3,957

Operating income (loss) (EBIT) ($ in millions)

1,235

(2,276)

1,870

(2,457)

Profit (loss) before income tax ($ in millions).

1,133

(2,342)

1,604

(2,678)

Net income (loss) ($ in millions)………………….

1,126

(2,270)

1,591

(2,541)

Adjusted EBITDA1 ($ in millions)………………..

1,531

211

2,725

859

Adjusted EBIT1 ($ in millions)…………………….

1,236

(213)

1,891

(373)

Net income (loss) margin (%)…………………….

(178)

(64)

Adjusted EBITDA margin (%)…………………….

Adjusted EBIT margin (%)…………………………

(17)

(9)

Diluted earnings (loss) per share ($)…………..

9.34

(18.90)

13.17

(21.19)

Net cash generated from operating activities
($ in millions)…………………………………………..

1,498

338

2,600

858

Free cash flow1 ($ in millions)……………………

1,454

328

2,470

791

SEP-30-24

DEC-31-23

Net debt1 ($ in millions)…………………………….

2,698

2,309

Financial and Operating Results for the Third Quarter Ended September 30, 2024

Total revenues were $2.77 billion for the third quarter of 2024, compared to $1.27 billion for the third quarter of 2023, mainly driven by the increase in freight rates as well as carried volume.

ZIM carried 970 thousand TEUs in the third quarter of 2024, compared to 867 thousand TEUs in the third quarter of 2023. The average freight rate per TEU was $2,480 for the third quarter of 2024, compared to $1,139 for the third quarter of 2023.

Operating income (EBIT) for the third quarter of 2024 was $1.23 billion, compared to operating loss of $2.28 billion for the third quarter of 2023. The increase was primarily driven by the impairment loss recorded in the third quarter of 2023 and the above-mentioned increase in revenues.

Net income for the third quarter of 2024 was $1.13 billion, compared to net loss of $2.27 billion for the third quarter of 2023, also mainly driven by the above-mentioned impairment loss recorded in the third quarter of 2023 and the increase in revenues.

Adjusted EBITDA for the third quarter of 2024 was $1.53 billion, compared to $211 million for the third quarter of 2023. Adjusted EBIT was $1.24 billion for the third quarter of 2024, compared to Adjusted EBIT loss of $213 million for the third quarter of 2023. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2024 were 55% and 45%, respectively. This compares to 17% and -17% for the third quarter of 2023, respectively.

Net cash generated from operating activities was $1.50 billion for the third quarter of 2024, compared to $338 million for the third quarter of 2023.

Financial and Operating Results for the Nine Months Ended September 30, 2024

Total revenues were $6.26 billion for the first nine months of 2024, compared to $3.96 billion for the first nine months of 2023, primarily driven by both an increase in freight rates as well as carried volume.

ZIM carried 2,768 thousand TEUs in the first nine months of 2024, compared to 2,496 thousand TEUs in the first nine months of 2023. The average freight rate per TEU was $1,889 for the first nine months of 2024, compared to $1,235 for the first nine months of 2023.

Operating income (EBIT) for the first nine months of 2024 was $1.87 billion, compared to operating loss of $2.46 billion for the first nine months of 2023. The increase was primarily driven by the above-mentioned increase in revenues and the impairment loss recorded in the third quarter of 2023.

Net income for the first nine months of 2024 was $1.59 billion, compared to net loss of $2.54 billion for the first nine months of 2023, also mainly driven by the above-mentioned increase in revenues and impairment loss recorded in the third quarter of 2023.

Adjusted EBITDA was $2.72 billion for the first nine months of 2024, compared to $859 million for the first nine months of 2023. Adjusted EBIT was $1.90 billion for the first nine months of 2024, compared to Adjusted EBIT loss of $373 million for the first nine months of 2023. Adjusted EBITDA and Adjusted EBIT margins for the first nine months of 2024 were 44% and 30%, respectively. This compares to 22% and -9% for the first nine months of 2023.

Net cash generated from operating activities was $2.60 billion for the first nine months of 2024, compared to $858 million for the first nine months 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 $441 million from $2.69 billion as of December 31, 2023 to $3.13 billion as of September 30, 2024. Capital expenditures totaled $50 million for the third quarter of 2024, compared to $14 million for the third quarter of 2023. Net debt position as of September 30, 2024 was $2.70 billion, compared to $2.31 billion, as of December 31, 2023, an increase of $389 million. ZIM’s net leverage ratio as of September 30, 2024, was 0.9x, compared to 2.2x as of December 31, 2023.

Third Quarter 2024 and Special Dividend

In accordance with the Company’s dividend policy, the Company’s Board of Directors declared a regular cash dividend of approximately $340 million, or $2.81 per ordinary share, reflecting approximately 30% of third quarter 2024 net income. In addition, the Board of Directors declared a special dividend of approximately $100 million, or $0.84 per share, for a total dividend of approximately $440 million or $3.65 per share. The dividend (both regular and special) will be paid on December 9, 2024, to holders of record of ZIM ordinary shares as of December 2, 2024.

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 2024 Guidance

A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2024 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.

Updated Full-Year 2024 Guidance

The Company increased its guidance for the full year of 2024 and now expects to generate Adjusted EBITDA between $3.3 billion and $3.6 billion and Adjusted EBIT between $2.15 billion and $2.45 billion. Previously, the Company expected to generate Adjusted EBITDA between $2.6 billion and $3.0 billion and Adjusted EBIT between $1.45 billion and $1.85 billion.

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 (toll free) +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: 1972775 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.

About ZIM

Founded in Israel in 1945, ZIM (NYSE: ZIM) is a leading global container liner shipping company with established operations in more than 90 countries serving approximately 33,000 customers in over 300 ports worldwide. ZIM leverages digital strategies and a commitment to ESG values to provide customers innovative seaborne transportation and logistics services and exceptional customer experience. ZIM’s differentiated global-niche strategy, based on agile fleet management and deployment, covers major trade routes with a focus on select markets where the company holds competitive advantages. Additional information about ZIM is available at www.ZIM.com.

Forward-Looking Statements

The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company’s future financial results, its anticipated growth strategies and anticipated trends in its business. These statements are only predictions based on the Company’s current expectations and projections about future events or results. There are important factors that could cause the Company’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: market changes in freight, bunker, charter and other rates or prices (including as a result of the continued situation in the Red Sea), supply-demand fluctuations in the containerized shipping market, new legislation or regulation affecting the Company’s operations, new competition and changes in the competitive environment, our ability to achieve cost savings or expense reductions, the outcome of legal proceedings to which the Company is a party, global, regional and/or local political instability, including the ongoing war between Israel and Hamas, the increased tension between Israel and Iran and its proxies, in particular the ongoing hostilities between Israel and Hezbollah, inflation rate fluctuations, capital markets fluctuations and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including under the caption “Risk Factors” in its 2023 Annual Report filed with the SEC on March 13, 2024.

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except as otherwise required by law.

The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

Use of Non-IFRS Financial Measures

The Company presents non-IFRS measures as additional performance measures as the Company believes that it enables the comparison of operating performance between periods on a consistent basis. These measures should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. Please note that Adjusted EBITDA does not take into account debt service requirements or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company’s use. In addition, the non-IFRS financial measures presented by the Company may not be comparable to similarly titled measures reported by other companies due to differences in the way these measures are calculated.

Adjusted EBITDA is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net, income taxes, depreciation and amortization in order to reach EBITDA, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.

Adjusted EBIT is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net and income taxes, in order to reach our results from operating activities, or EBIT, and further adjusted, as applicable, to exclude impairment of assets, non-cash charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.

Free cash flow is a non-IFRS financial measure which we define as net cash generated from operating activities minus capital expenditures, net.

Net debt is a non-IFRS financial measure which we define as face value of short- and long-term debt, minus cash and cash equivalents, bank deposits and other investment instruments. We refer to this measure as net cash when cash and cash equivalents, bank deposits and other investment instruments exceed the face value of short- and long-term debt.

Net leverage ratio is a non-IFRS financial measure which we define as net debt (see above) divided by Adjusted EBITDA for the last twelve-month period. When our net debt is less than zero, we report the net leverage ratio as zero.

See the reconciliation of net income to Adjusted EBIT and Adjusted EBITDA and net cash generated from operating activities to free cash flow in the tables provided below.

Investor Relations:

Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com

Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com

Media:

Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
media@zim.com

CONSOLIDATED BALANCE SHEET (Unaudited)

(U.S. dollars in millions)

September 30

December 31

2024

2023

Assets

Vessels

5,301.9

3,222.9

3,758.9

Containers and handling equipment

988.7

788.2

792.9

Other tangible assets

91.1

61.1

85.2

Intangible assets

107.6

93.3

102.0

Investments in associates

26.0

26.8

26.4

Other investments

844.6

1,252.6

908.7

Other receivables

69.9

105.5

97.9

Deferred tax assets

2.5

9.6

2.6

Total non-current assets

7,432.3

5,560.0

5,774.6

Inventories

208.4

156.4

179.3

Trade and other receivables

1,062.5

644.3

596.5

Other investments

766.6

918.6

874.1

Cash and cash equivalents

1,548.7

912.1

921.5

Total current assets

3,586.2

2,631.4

2,571.4

Total assets

11,018.5

8,191.4

8,346.0

Equity

Share capital and reserves

2,041.1

1,980.7

2,017.5

Retained earnings

1,884.8

586.9

437.2

Equity attributable to owners of the Company

3,925.9

2,567.6

2,454.7

Non-controlling interests

4.8

3.8

3.3

Total equity

3,930.7

2,571.4

2,458.0

Liabilities

Lease liabilities

4,284.7

2,952.0

3,244.1

Loans and other liabilities

67.4

79.3

73.6

Employee benefits

43.4

39.4

46.1

Deferred tax liabilities

5.2

13.0

6.1

Total non-current liabilities

4,400.7

3,083.7

3,369.9

Trade and other payables

668.3

554.6

566.4

Provisions

93.0

58.3

60.7

Contract liabilities

433.8

207.3

198.1

Lease liabilities

1,433.6

1,668.0

1,644.7

Loans and other liabilities

58.4

48.1

48.2

Total current liabilities

2,687.1

2,536.3

2,518.1

Total liabilities

7,087.8

5,620.0

5,888.0

Total equity and liabilities

11,018.5

8,191.4

8,346.0

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(U.S. dollars in millions, except per share data)

Nine months
ended September 30

Three months
ended September 30

Year ended
December 31

2024

2023

2024

2023

Income from voyages and related services

6,259.8

3,956.9

2,765.2

1,273.0

5,162.2

Cost of voyages and related services

Operating expenses and cost of services

(3,381.9)

(2,922.0)

(1,167.8)

(1,008.4)

(3,885.1)

Depreciation

(824.9)

(1,212.8)

(292.1)

(417.4)

(1,449.8)

Impairment of assets

(2,034.9)

Gross profit (loss)

2,053.0

(2,212.8)

1,305.3

(2,187.7)

(2,207.6)

Other operating income

32.9

2.5

7.3

0.6

14.4

Other operating expenses

(1.7)

(32.5)

(1.1)

(22.4)

(29.3)

General and administrative expenses

(209.7)

(209.4)

(75.9)

(63.9)

(280.7)

Share of loss of associates

(4.8)

(5.2)

(0.8)

(2.3)

(7.8)

Results from operating activities

1,869.7

(2,457.4)

1,234.8

(2,275.7)

(2,511.0)

Finance income

81.0

117.7

19.8

35.6

142.2

Finance expenses

(346.5)

(338.7)

(121.6)

(101.5)

(446.7)

Net finance expenses

(265.5)

(221.0)

(101.8)

(65.9)

(304.5)

Profit (loss) before income taxes

1,604.2

(2,678.4)

1,133.0

(2,341.6)

(2,815.5)

Income taxes

(13.1)

137.1

(6.8)

71.1

127.6

Profit (loss) for the period

1,591.1

(2,541.3)

1,126.2

(2,270.5)

(2,687.9)

Attributable to:

Owners of the Company

1,586.2

(2,547.2)

1,124.6

(2,272.6)

(2,695.6)

Non-controlling interests

4.9

5.9

1.6

2.1

7.7

Profit (loss) for the period

1,591.1

(2,541.3)

1,126.2

(2,270.5)

(2,687.9)

Earnings (loss) per share (US$)

Basic earnings (loss) per 1 ordinary share

13.18

(21.19)

9.34

(18.90)

(22.42)

Diluted earnings (loss) per 1 ordinary share

13.17

(21.19)

9.34

(18.90)

(22.42)

Weighted average number of shares for earnings
(loss) per share calculation:

Basic

120,340,513

120,194,990

120,372,813

120,219,761

120,213,031

Diluted

120,463,258

120,194,990

120,475,290

120,219,761

120,213,031

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

Year ended
December 31

2024

2023

2024

2023

Cash flows from operating activities

Profit (loss) for the period

1,591.1

(2,541.3)

1,126.2

(2,270.5)

(2,687.9)

Adjustments for:

Depreciation and amortization

833.6

1,232.5

295.0

423.8

1,471.8

Impairment loss

2,063.4

Net finance expenses

265.5

221.0

101.8

65.9

304.5

Share of losses and change in fair value of investees

4.8

4.5

0.8

2.3

6.5

Capital loss (gain), net

(31.7)

3.2

(6.2)

(4.2)

(10.9)

Income taxes

13.1

(137.1)

6.8

(71.1)

(127.6)

Other non-cash items

11.9

14.2

8.9

4.5

18.9

2,688.3

860.4

1,533.3

214.1

1,038.7

Change in inventories

(29.1)

34.3

(20.7)

17.7

11.4

Change in trade and other receivables

(481.3)

237.5

(34.3)

60.6

242.7

Change in trade and other payables including contract liabilities

326.8

(76.7)

(5.0)

19.2

(95.1)

Change in provisions and employee benefits

31.9

7.0

4.6

4.1

15.9

(151.7)

202.1

(55.4)

101.6

174.9

Dividends received from associates

2.4

1.7

1.2

0.2

2.3

Interest received

64.6

113.0

24.8

25.0

133.8

Income taxes received (paid)

(3.2)

(319.4)

(6.4)

(3.3)

(329.7)

Net cash generated from operating activities

2,600.4

857.8

1,497.5

337.6

1,020.0

Cash flows from investing activities

Proceeds from sale of tangible assets, intangible assets and interest
in investees

10.5

21.4

7.3

3.7

27.4

Acquisition and capitalized expenditures of tangible assets,
intangible assets and interest in investees

(141.1)

(75.2)

(50.3)

(13.7)

(115.7)

Proceeds from sale (acquisition) of investment instruments, net

240.8

(609.6)

(74.3)

(26.2)

(138.2)

Loans granted to investees

(5.2)

(3.8)

(2.4)

(2.1)

(5.4)

Change in other receivables

23.3

(4.7)

7.9

9.3

3.2

Change in other investments (mainly deposits), net

(34.4)

2,002.6

(34.4)

19.9

2,005.2

Net cash generated from (used in) investing activities

93.9

1,330.7

(146.2)

(9.1)

1,776.5

Cash flows from financing activities

Repayment of lease liabilities and borrowings

(1,591.2)

(1,214.1)

(474.2)

(352.7)

(1,713.1)

Change in short term loans

10.3

(21.0)

10.3

(21.0)

Dividend paid to non-controlling interests

(4.2)

(7.5)

(0.5)

(8.9)

Dividend paid to owners of the Company

(139.6)

(769.2)

(111.9)

(769.2)

Interest paid

(342.2)

(281.5)

(120.6)

(98.8)

(380.7)

Net cash used in financing activities

(2,066.9)

(2,293.3)

(696.9)

(451.5)

(2,892.9)

Net change in cash and cash equivalents

627.4

(104.8)

654.4

(123.0)

(96.4)

Cash and cash equivalents at beginning of the period

921.5

1,022.1

889.8

1,040.3

1,022.1

Effect of exchange rate fluctuation on cash held

(0.2)

(5.2)

4.5

(5.2)

(4.2)

Cash and cash equivalents at the end of the period

1,548.7

912.1

1,548.7

912.1

921.5

RECONCILIATION OF NET INCOME TO ADJUSTED EBIT*

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

2024

2023

2024

2023

Net income (loss)

1,591

(2,541)

1,126

(2,270)

Financial expenses, net

266

221

102

Income taxes

(137)

(71)

Operating income (EBIT)

1,870

(2,457)

1,235

(2,276)

Capital loss (gain), beyond the ordinary
course of business

(2)

Impairment of assets

2,063

Expenses related to legal contingencies

Adjusted EBIT

1,891

(373)

1,236

(213)

Adjusted EBIT margin

30 %

(9) %

45 %

(17) %

* The table above may contain slight summation differences due to rounding.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA*

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

2024

2023

2024

2023

Net income (loss)

1,591

(2,541)

1,126

(2,270)

Financial expenses, net

266

221

102

Income taxes

(137)

(71)

Depreciation and amortization

834

1,232

295

424

EBITDA

2,703

(1,225)

1,530

(1,852)

Capital loss (gain), beyond the ordinary
course of business

(2)

Impairment of assets

2,063

Expenses related to legal contingencies

Adjusted EBITDA

2,725

859

1,531

211

Net income (loss) margin

25 %

(64) %

41 %

(178) %

Adjusted EBITDA margin

44 %

22 %

55 %

17 %

* The table above may contain slight summation differences due to rounding.

RECONCILIATION OF NET CASH GENERATED FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(U.S. dollars in millions)

Nine months ended
September 30

Three months ended
September 30

2024

2023

2024

2023

Net cash generated from operating
activities

2,600

858

1,498

338

Capital expenditures, net

(130)

(67)

(44)

(10)

Free cash flow

2,470

791

1,454

328

[1] See disclosure regarding “Use of Non-IFRS Financial Measures.”

[2] Operating income (EBIT) for the third quarter was $1.23 billion. A reconciliation to Adjusted EBIT is provided in the tables below.

[3] The Company does not provide IFRS guidance because it cannot be determined without unreasonable effort. See disclosure regarding “Use of Non-IFRS Measures in the Company’s 2024 Guidance.”

[4] Net loss for the third quarter of 2023 was primarily driven by a non-cash impairment loss of $2.06 billion.

[5] The number of shares used to calculate the diluted earnings per share is 120,475,290. The number of outstanding shares as of September 30, 2024 was 120,389,157.

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SOURCE Zim Integrated Shipping Services Ltd.

Technology

Outlook strong for home services with pros confident in 2025 growth

Published

1 minute ago

November 20, 2024

New Housecall Pro report highlights industry resilience, trade career appeal, and AI’s role in boosting growth and efficiency.

SAN DIEGO, Nov. 20, 2024 /PRNewswire/ — Housecall Pro, the leading software platform serving more than 180,000 home service professionals, today released findings from its Fall 2024 report. The report, based on a survey of over 400 home services pros, highlights four trends shaping the future of the home services industry: growing business confidence, rising demand for skilled labor, the trades’ appeal as a stable career path, and the expanding adoption of AI.

Pros confident in 2025 growth
According to the survey, 77% of home service professionals expect to grow their businesses in 2025, with 40% expecting to grow by more than 10%. Despite challenges like inflation and rising material costs, professionals remain optimistic, supported by the essential nature of their work and ongoing demand for home services.

“The home services industry has proven its resilience in 2024, navigating economic uncertainty and inflation,” said Roland Ligtenberg, Housecall Pro co-founder and SVP of Innovation. “This strength, paired with increasing demand for skilled trades, provides a solid foundation for continued success.”

Trades offer a stable career path amid ongoing skilled labor shortage
The report underscores the appeal of trade careers as a stable and rewarding alternative to traditional college paths—particularly as the majority of pros surveyed cite finding qualified candidates to be their greatest hiring challenge. With the Bureau of Labor Statistics projecting more than 165,000 annual job openings across the plumbing, electrical and HVAC industries through 2033, the trades are positioned to offer continued long-term job security. Nearly 80% of professionals surveyed believe the trades provide a more stable career path than college, while 86% anticipate rising demand for skilled workers over the next five years.

The report also emphasizes the need for mentorship and training as experienced professionals retire, with 80% of pros saying increasing mentorship, apprenticeships and education are key to solving the skilled labor shortage.

Businesses embracing AI to drive efficiency and growth
The survey also highlights the growing role of AI in the home services industry. Forty-two percent of professionals reported using AI tools in the past year, citing benefits such as increased efficiency, revenue growth, and improved job management. Looking ahead, 44% of respondents believe AI will continue to enhance roles in the trades rather than replace them.

“Skilled workers in the trades are uniquely positioned to adopt AI tools that streamline workflows and improve efficiency, without the fear of job displacement,” said Ligtenberg. “By pairing advanced technology with skilled human expertise, the industry is not only boosting productivity but also attracting the next generation of talent to the trades.”

Access to all the findings are available in the full survey report.

About Housecall Pro
Housecall Pro is a top-rated software platform that empowers home service professionals to save time, grow their businesses, and deliver exceptional service. With tools for scheduling, dispatching, invoicing, and more, Housecall Pro enables professionals to focus on what they do best. Since 2013, Housecall Pro has been committed to championing pros to success through innovative product solutions and a supportive community.
For more information, visit housecallpro.com.

MEDIA CONTACT:

Heather Ripley
Ripley PR
(865) 977-1973
hripley@ripleypr.com

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SOURCE Housecall Pro