ZIM Integrated Shipping Services : First Quarter 2025 Financial Statement
ZIM
Published on 05/19/2025 at 17:13
INDEX TO CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS
FINANCIAL STATEMENTS:
Condensed consolidated unaudited interim Statements of Financial Position
3
Condensed consolidated unaudited interim Income Statements
4
Condensed consolidated unaudited interim Statements of Comprehensive Income
5
Condensed consolidated unaudited interim Statements of Changes in Equity
6
Condensed consolidated unaudited interim Statements of Cash Flows
7-8
Notes to the condensed consolidated unaudited interim Financial Statements
9-15
CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF FINANCIAL POSITION
March 31
December 31
2025
2024
2024
Note
US $ in millions
Assets
Vessels
6
5,727.5
4,488.7
5,733.0
Containers and handling equipment
6
1,065.6
822.9
1,013.3
Other tangible assets
6
105.2
87.7
97.7
Intangible assets
110.3
104.8
109.8
Investments in associates
22.0
30.3
25.4
Other investments
1,109.0
814.0
1,080.9
Other receivables
55.5
82.7
61.0
Deferred tax assets
7.6
2.5
7.5
Total non-current assets
8,202.7
6,433.6
8,128.6
Inventories
217.5
197.3
212.2
Trade and other receivables
760.0
868.0
933.6
Other investments
765.4
744.8
800.4
Cash and cash equivalents
1,546.1
687.9
1,314.7
Total current assets
3,289.0
2,498.0
3,260.9
Total assets
11,491.7
8,931.6
11,389.5
Equity
Share capital and reserves
5
2,039.8
2,013.9
2,032.7
Retained earnings
1,918.1
527.4
2,004.2
Equity attributable to owners of the Company
3,957.9
2,541.3
4,036.9
Non-controlling interests
6.0
4.1
5.8
Total equity
3,963.9
2,545.4
4,042.7
Liabilities
Lease liabilities
4,539.7
3,716.8
4,600.6
Loans and other liabilities
55.5
66.6
59.9
Employee benefits
55.2
45.4
47.5
Deferred tax liabilities
83.6
5.8
27.6
Total non-current liabilities
4,734.0
3,834.6
4,735.6
Trade and other payables
4(e)
1,137.8
612.2
736.2
Provisions
85.4
63.6
96.6
Contract liabilities
287.7
292.9
408.9
Lease liabilities
1,235.1
1,534.7
1,321.7
Loans and other liabilities
47.8
48.2
47.8
Total current liabilities
2,793.8
2,551.6
2,611.2
Total liabilities
7,527.8
6,386.2
7,346.8
Total equity and liabilities
11,491.7
8,931.6
11,389.5
/s/ Yair Seroussi
/s/ Eli Glickman
/s/ Xavier Destriau
Yair Seroussi
Eli Glickman
Xavier Destriau
Chairman of the Board of Directors
President & Chief Executive Officer
Chief Financial Officer
Date of approval of the Financial Statements: May 19, 2025.
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.
3
Three months ended
March 31
Year ended
December 31
2025
2024
2024
Note
US $ in millions
Income from voyages and related services
7
2,006.6
1,562.0
8,427.4
Cost of voyages and related services:
Operating expenses and cost of services
8
(1,162.6)
(1,080.8)
(4,513.2)
Depreciation
(310.8)
(257.7)
(1,130.2)
Gross profit
533.2
223.5
2,784.0
Other operating income
12.5
6.0
46.6
Other operating expenses
(0.8)
General and administrative expenses
(79.0)
(60.8)
(296.1)
Share in loss of associates
(2.4)
(2.1)
(6.4)
Results from operating activities
464.3
166.6
2,527.3
Finance income
40.0
38.7
149.2
Finance expenses
(123.8)
(109.0)
(471.5)
Net finance expenses
(83.8)
(70.3)
(322.3)
Profit before income taxes
380.5
96.3
2,205.0
Income taxes
(84.4)
(4.2)
(51.2)
Profit for the period
296.1
92.1
2,153.8
Attributable to:
Owners of the Company
295.3
90.3
2,147.7
Non-controlling interests
0.8
1.8
6.1
Profit for the period
296.1
92.1
2,153.8
Earnings per share (US$)
Basic earnings per 1 ordinary share
10
2.45
0.75
17.84
Diluted earnings per 1 ordinary share
10
2.45
0.75
17.82
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.
Three months ended
March 31
Year ended
December 31
2025
2024
2024
US $ in millions
Profit for the period
296.1
92.1
2,153.8
Other components of comprehensive income
Items of other comprehensive income that were or will be reclassified to profit and loss
Foreign currency translation differences for foreign operations
(0.7)
(2.7)
(2.4)
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax
5.8
(4.7)
7.6
Net change in fair value of investments in debt instruments at fair value through other comprehensive income that was transferred to profit or loss
(0.2)
0.4
0.7
Items of other comprehensive income that would never be reclassified to profit and loss
Net change in fair value of investments in equity instruments at fair value through other comprehensive income, net of tax
0.1
(0.2)
(0.1)
Defined benefit pension plans actuarial gains, net of tax
0.5
(0.2)
(1.7)
Other comprehensive income for the period, net of tax
5.5
(7.4)
4.1
Total comprehensive income for the period
301.6
84.7
2,157.9
Attributable to:
Owners of the Company
301.2
83.5
2,151.3
Non-controlling interests
0.4
1.2
6.6
Total comprehensive income for the period
301.6
84.7
2,157.9
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.
CONDENSED CONSOLIDATED UNAUDITED INTERIM STATEMENTS OF CHANGES IN EQUITY
Attribute to the owners of the Company
Share
General
Translation
Retained
Non-
controlli
Total
capital
reserves (*)
reserve
earnings
Total
ng
equity
US $ in millions
For the three months period ended March 31, 2025
Balance at January 1, 2025
927.3
1,151.3
(45.9)
2,004.2
4,036.9
5.8
4,042.7
Profit for the period
295.3
295.3
0.8
296.1
Other comprehensive income for the period, net of tax
5.7
(0.3)
0.5
5.9
(0.4)
5.5
Share-based compensation
1.7
1.7
1.7
Exercise of options
0.2
(0.2)
Dividend to owners of the Company
(381.9)
(381.9)
(381.9)
Dividend to non-controlling interests in subsidiaries
(0.2)
(0.2)
Balance at March 31, 2025
927.5
1,158.5
(46.2)
1,918.1
3,957.9
6.0
3,963.9
For the three months period ended March 31, 2024
Balance at January 1, 2024
926.6
1,133.7
(42.8)
437.2
2,454.7
3.3
2,458.0
Profit for the period
90.3
90.3
1.8
92.1
Other comprehensive income for the period, net of tax
(4.7)
(2.0)
(0.1)
(6.8)
(0.6)
(7.4)
Share-based compensation
3.1
3.1
3.1
Exercise of options
0.2
(0.2)
Dividend to non-controlling interests in subsidiaries
(0.4)
(0.4)
Balance at March 31, 2024
926.8
1,131.9
(44.8)
527.4
2,541.3
4.1
2,545.4
For the year ended December 31, 2024 Balance at January 1, 2024
926.6
1,133.7
(42.8)
437.2
2,454.7
3.3
2,458.0
Profit for the year
2,147.7
2,147.7
6.1
2,153.8
Other comprehensive income for the year, net of tax
8.2
(3.1)
(1.5)
3.6
0.5
4.1
Exercise of options
0.7
(0.7)
Share-based compensation
10.0
10.0
10.0
Dividend to owners of the Company
(579.2)
(579.2)
(579.2)
Acquisition of non-controlling interest in a subsidiary
0.1
0.1
(0.1)
(4.0)
(4.0)
927.3
1,151.3
(45.9)
2,004.2
4,036.9
5.8
4,042.7
Dividend to non-controlling interests in subsidiaries
(*) Include reserves related to share-based compensation and changes in fair value of investment instruments.
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.
Three months ended
Year ended
March 31
December 31
2025
2024
2024
US $ in millions
Cash flows from operating activities
Profit for the period
296.1
92.1
2,153.8
Adjustments for:
Depreciation and amortization
315.9
260.6
1,142.5
Net finance expenses
83.8
70.3
342.4
Share of losses and change in fair value of investees
2.4
2.1
6.4
Capital gain, net
(11.9)
(6.0)
(43.9)
Income taxes
84.4
4.2
51.2
Other non-cash items
0.4
1.5
10.9
771.1
424.8
3,663.3
Change in inventories
(5.3)
(18.0)
(32.9)
Change in trade and other receivables
181.8
(236.2)
(352.9)
Change in trade and other payables, including contract
liabilities
(126.2)
133.3
357.8
Change in provisions and employee benefits
1.4
3.2
35.4
51.7
(117.7)
7.4
Dividends received from associates
1.0
1.2
3.1
Interest received
30.4
22.0
97.3
Income taxes received (paid)
0.5
(4.2)
(18.4)
Net cash generated from operating activities
854.7
326.1
3,752.7
Cash flows from investing activities
Proceeds from sale of tangible assets, intangible assets,
and interest in investees
9.9
1.5
18.7
Acquisition and capitalized expenditures of tangible assets,
intangible assets and interest in investees
(78.0)
(24.4)
(214.1)
Disposal (acquisition) of investment instruments, net
(13.2)
199.0
85.8
Loans granted to investees
(1.9)
(1.2)
(6.1)
Change in other receivables
7.4
7.7
31.6
Change in other investments (mainly deposits), net
34.1
1.1
(139.1)
Net cash generated from (used in) investing activities
(41.7)
183.7
(223.2)
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.
Three months ended
Year ended
March 31
December 31
2025
2024
2024
US $ in millions
Cash flows from financing activities
Repayment of lease liabilities and borrowings
(460.4)
(636.7)
(2,082.6)
Dividend paid to non-controlling interests
(0.2)
(0.4)
(4.0)
Dividend paid to owners of the Company
(579.2)
Interest paid
(121.7)
(103.7)
(465.6)
Net cash used in financing activities
(582.3)
(740.8)
(3,131.4)
Net change in cash and cash equivalents
230.7
(231.0)
398.1
Cash and cash equivalents at beginning of the period
1,314.7
921.5
921.5
Effect of exchange rate fluctuation on cash held
0.7
(2.6)
(4.9)
Cash and cash equivalents at the end of the period
1,546.1
687.9
1,314.7
The accompanying Notes are an integral part of these condensed consolidated unaudited interim Financial Statements.
ZIM Integrated Shipping Services Ltd. (hereinafter - the "Company" or "ZIM") and its subsidiaries (hereinafter - "the Group" or "the Companies") and the Group's interests in associates, operate in the field of cargo shipping and related services.
ZIM is a company incorporated in Israel, with limited liability. ZIM's ordinary shares have been listed on the New York Stock Exchange (the "NYSE") under the symbol "ZIM" on January 28, 2021. The address of the Company's registered office is 9 Andrei Sakharov Street, Haifa, Israel.
These condensed consolidated unaudited interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements in accordance with IFRS Accounting Standards (IFRSs) and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended December 31, 2024 (hereafter - the "annual Financial
Statements"). These condensed consolidated unaudited interim Financial Statements were approved by the Board of Directors on May 19, 2025.
The preparation of Financial Statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The significant judgments made by management in applying the Group's accounting policies and the principal assumptions used in the estimation of uncertainties were the same as those applied in the annual Financial Statements.
The material accounting policies applied by the Group in these unaudited condensed consolidated interim Financial Statements are the same as those applied by the Group in its annual Financial Statements.
The container shipping industry continues to be impacted by the supply and demand dynamics, as well as by uncertainties in the global trade, including the continuing disruption in the Red Sea, the escalating trade barriers between the US and China and other countries, the implications of the ongoing armed conflicts between Russia and Ukraine, in the Middle-East and most recently between India and Pakistan, and the inflation and elevated interest rates in certain countries and other geopolitical challenges. These factors contribute to the continuing volatility in freight rates, charter rates and bunker prices. In addition, in recent quarters, regulators in certain jurisdictions have increased their regulatory oversight activities over our industry, by, among others, increased audit activities and introduction of new regulation relating to the contractual routines between carriers and their customers.
In April 2025, the US administration declared its intention to impose new fees, as from mid-October 2025, on vessels calling ports in the US, which were built in China or are owned / operated by Chinese entities. The Company is reviewing the potential impact of these fees and is taking measures to mitigate their effects, but if it is unable to fully succeed in mitigating their effect, these fees could materially increase its operational costs and adversely affect its results of operation.
As of today, the war situation in Israel, which started in October 2023, has had no material impact on the Company's activities in Israel. However, those may be subject to temporary disruptions if this situation was to further escalate.
Since December 2023, many ocean carriers including the Company, paused their activities in the Red Sea, following attacks made against commercial vessels by armed organizations in Yemen. The Company continues to call ports in the Mediterranean Sea, as well as to operate services which previously crossed the Suez-canal, by re-routing its vessels around Africa. This disruption results in the extension of voyages duration, as well as leading to an increase in demand for vessel capacity, as additional vessels are operated in order to maintain the same frequency of services.
Further to the above, during 2024 freight rates have experienced an overall increase, although decreases were observed during the second half of the year, as well as during the first quarter of 2025.
In view of the aforementioned business environment and in order to constantly improve the Group's results of operations and liquidity position, Management continues to optimize its network by considering, and when appropriate, implementing structural changes, participating in partnerships and cooperation agreements and by upgrading its customer's offerings, whilst seeking operational excellence and cost efficiencies.
In September 2024, the Company entered into a long-term operational cooperation with Mediterranean Shipping Company (MSC), which was launched in February 2025, for a minimum period of three years. According to this cooperation, the Company and MSC operate together six services on the Asia - US East Coast and Asia - US Gulf trades, enabling ZIM to provide its customers with extended port coverage and improved service quality, while achieving significant operational efficiencies. Further to the abovementioned factors affecting the trade lanes within the scope of this partnership, the Company and MSC are actively leveraging their operational collaboration to constantly adjust the overall capacity being deployed on those services as dictated by market trends and demand.
The Company's operational cooperation with the 2M alliance (Maersk and MSC), originally launched in 2018, covering services on the Asia - US East Coast and Asia - US Gulf trades, has ended in January 2025, further to the previously announced termination of the 2M alliance.
Charter agreements:
In April 2025, the Company entered into a series of long-term time charter agreements, with a company affiliated with the TMS Group, for ten 11,500 TEU liquefied natural gas (LNG) dual-fuel container vessels. The vessels are scheduled to be delivered during the second half of 2027 and into 2028 and will be deployed across the Company's various global trades. Pursuant to these agreements, the Company will charter the vessels for a period of twelve years, for a total aggregated consideration of approximately US$ 2.3 billion. In addition, and for each vessel, at the end of the initial twelve-year charter period, the Company has secured an option to either purchase the vessel or to extend the charter duration for an additional period of three years.
During the first quarter of 2025, the Company acquired two vessels which were operating in its fleet under prior charter arrangements. Out of the related consideration, an amount of US$ 52 million is presented in the cash flow statement as repayment of lease liabilities.
Dividends:
In April 2025, further to the approval of the Company's Board of Directors, the Company distributed a dividend in an amount of US$ 382 million, reflecting US$ 3.17 per ordinary share. As of March 31, 2025, the dividend payable amount was included in Trade and other payables.
In May 2025, the Company's Board of Directors approved a dividend distribution of approximately US$ 0.74 per ordinary share (or approximately US$ 89 million, considering the number of ordinary shares outstanding as of March 31, 2025). The dividend is scheduled to be paid on June 9, 2025 to all holders of ordinary shares on record as of June 2, 2025.
During the three months period ended March 31, 2025, 2024 and the year ended December 31, 2024, the Company recorded expenses related to share-based compensation arrangements of US$ 1.7 million, US$
3.1 million and US$ 10.0 million respectively.
Balance at March 31
Balance at December 31
2025
2024
2024
US $ in millions
Vessels
5,162.1
3,992.3
5,256.8
Containers and handling equipment
423.5
312.1
366.6
Other tangible assets
54.7
47.6
48.9
5,640.3
4,352.0
5,672.3
Revenues generated throughout the Group's global network, are disaggregated as follows:
Three months ended March 31
Year ended December 31
2025
2024
2024
US $ in millions
Freight revenues from containerized cargo:
Pacific
862.6
609.3
3,920.1
Cross-Suez
210.3
185.0
864.5
Atlantic
187.4
164.7
687.8
Intra-Asia
187.9
122.9
762.9
Latin America
229.4
147.3
845.8
1,677.6
1,229.2
7,081.1
Freight revenues from non-containerized cargo (mostly related to vehicle shipping services)
113.6
111.2
497.0
Other revenues (*)
215.4
221.6
849.3
2,006.6
1,562.0
8,427.4
(*) Mainly demurrage, related services and other value-added services.
Three months ended March 31
Year ended December 31
2025
2024
2024
US $ in millions
Wages, maintenance and other
vessel-operating costs
10.2
8.2
37.3
Expenses relating to fleet equipment
(mainly containers and chassis)
8.9
9.5
37.3
Bunker and lubricants
314.6
307.3
1,286.0
Insurance
7.3
7.7
34.5
Expenses related to cargo handling
543.1
457.8
2,013.1
Port expenses
128.7
112.8
461.8
Agents' salaries and commissions
63.0
49.9
251.7
Cost of related services and sundry
52.9
90.4
285.2
Slot purchases and hire of vessels
23.4
29.0
74.4
Hire of containers
10.5
8.2
31.9
1,162.6
1,080.8
4,513.2
Financial instruments measured at fair value
Balance at March 31,
2025
2024
US $ in millions
Level 1
Level 3
Total
Level 1
Level 3
Total
Fair value through profit and loss
Cash and cash equivalents:
Money markets instruments
840.8
840.8
300.9
300.9
Other investments:
Equity instruments
23.9
23.9
10.8
10.8
Loans and other liabilities:
Derivative instruments
(15.6)
(15.6)
(9.8)
(9.8)
Fair value through other comprehensive income
Other investments:
Sovereign bonds
506.9
506.9
672.1
672.1
Corporate bonds
1,216.3
1,216.3
857.9
857.9
Equity instruments
1.9
1.9
1.7
1.7
Balance at December 31,
2024
US $ in millions
Level 1
Level 3
Total
Fair value through profit and loss
Cash and cash equivalents:
Money markets instruments
616.8
616.8
Other investments:
Equity instruments
13.2
13.2
Loans and other liabilities:
Derivative instruments
(16.9)
(16.9)
Fair value through other comprehensive income
Other investments:
Sovereign bonds
546.0
546.0
Corporate bonds
1,161.8
1,161.8
Equity instruments
1.7
1.7
Financial instruments not measured at fair value
The carrying amounts of the Group's financial assets and liabilities, including cash and cash equivalents, trade and other receivables, other investments, trade and other payables and loans and other liabilities, reflect reasonable approximation of their fair value.
Basic and diluted earnings per share
Three months ended March 31
Year ended December 31
2025
2024
2024
US $ in millions
Profit attributable to ordinary shareholders used to calculate basic and diluted earnings per share (US $ in millions)
295.3
90.3
2,147.7
Number of shares at the beginning of the period used to calculate basic earnings per share
120,423,333
120,286,627
120,286,627
Effect of share options
15,949
20,656
70,688
Weighted average number of ordinary shares used to calculate basic earnings per share
120,439,282
120,307,283
120,357,315
Effect of share options
69,372
143,303
135,110
Weighted average number of ordinary shares used to calculate diluted earnings per share
120,508,654
120,450,586
120,492,425
In the three-month period ended March 31, 2025, options for 1,922,033 ordinary shares, granted to officers, directors and employees (see also above) were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.
Disclaimer
ZIM Integrated Shipping Services Ltd. published this content on May 19, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 19, 2025 at 21:12 UTC.