ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) Q2 2024 Earnings Conference Call August 19, 2024 8:00 AM ET

Company Participants

Elana Holzman - Head of IR
Eli Glickman - President & CEO
Xavier Destriau - CFO

Conference Call Participants

Omar Nokta - Jefferies
Sathish Sivakumar - Citi

Operator

Thank you for standing by and welcome to the ZIM Integrated Shipping Services Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. [Operator Instructions]

Thank you. I'd now like to turn the call over to Elana Holzman. You may begin.

Elana Holzman

Thank you, operator, and welcome to ZIM's Second Quarter 2024 Financial Results Conference Call. Joining me on the call today are Eli Glickman, ZIM's President and CEO, and Xavier Destriau, ZIM’s CFO. Before we begin, I would like to remind you that during the course of this call, we will make forward-looking statements regarding expectations, predictions, projections, or future events or results. We believe that our expectations and assumptions are reasonable.

We wish to caution you that such statements reflect only the company's current expectations and that actual events or results may differ, including materially. You are kindly referred to consider the risk factors in cautionary language described in the documents the company filed with the Securities and Exchange Commission, including our 2023 Annual Report and Form 20-F filed with the SEC in March 2024. We undertake no obligation to update these forward-looking statements.

At this time, I would like to turn the call over to ZIM’s CEO, Eli Glickman. Eli?

Eli Glickman

Thank you, Elana, and welcome everyone. ZIM positive momentum continues in the second quarter and we are pleased to report strong Q2 results today, highlighted by double-digit volume growth to a record high carried volume and increased guidance for the full year. ZIM generated net income of $373 million and revenue of $1.9 billion at the second quarter.

Adjusted EBITDA was $766 million and adjusted EBIT was $488 million, reflecting adjusted EBITDA margin of 40% and adjusted EBIT margin of 25%. We maintain a total liquidity of $2.3 billion at quarter end. I am particularly proud of the record we set this quarter in terms of our carried volume, which totaled of 952,000 TEU. We achieved double-digit growth as planned, significantly outpacing global container market growth. This achievement is, of course, a direct outcome of our strategic decision to upscale our capacity, but not less important, has been the exceptional execution of our employees globally.