ZIM Integrated Shipping Services Stock Slips Post Q1 Results

ZIM Integrated Shipping Services Ltd ZIM reported first-quarter sales growth of 113.1% year-over-year to $3.72 billion, beating the consensus of $3.47 billion.
Carried volume in the first quarter was 859 thousand TEUs (+5% Y/Y). The first quarter's average freight rate per TEU was $3,848 (+100% Y/Y).
The gross margin expanded by 2,008 bps to 62.3%. The operating income increased to $2.24 billion (+228.1% Y/Y), and the margin expanded to 60.3%, up by 2,116 bps.
EPS was $14.19, above the consensus of $12.53.
Net cash generated from operating activities was $1.66 billion, compared to $777 million in 1Q21.
Dividend: ZIM declared a cash dividend of ~$342 million, or $2.85 per ordinary share, payable on June 8, 2022, to holders of ZIM ordinary shares as of May 31, 2022.
ZIM's total cash position was at $5.11 billion at March 31, 2022. Net leverage ratio of 0.0x at March 31, 2022 (unchanged from December 31, 2021).
During the quarter, ZIM entered into multiple charter agreements for 17 newbuilds. The vessels are expected to be delivered to ZIM throughout 2023 and 2024.
FY22 Outlook: The company expects Adjusted EBITDA of $7.8 billion - $8.2 billion (prior view $7.1 billion - $7.5 billion) and Adjusted EBIT of $6.3 billion - $6.7 billion (prior view $5.6 billion - $6.0 billion).
Price Action: ZIM shares are trading lower by 7.52% at $60.15 on the last check Wednesday.

Momentum33.76

Growth84.46

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