CMP’s focus on increased freight volumes is continuing to produce an excellent return. It is with pride that I can state that our volumes grew by 5 per cent during 2016, at the same time as turnover increased by 6.6 per cent. In total almost 16 million tonnes of freight. This means that we are once again approaching the levels we saw before the financial crisis. We have simultaneously continued to improve productivity, which is shown by the fact that sales and freight handled per employee has increased. To sum up, we have achieved the volume and profit targets for the year. However, a change in accounting has had a significant effect on, among other things, adjusted equity and operating profit. This effect is presented in more detail in the directors' report.
The fact that our underlying profit is nevertheless strong is linked to a number of initiatives that were implemented in recent years. We have increased the focus on sales throughout the organisation in various ways. More time and resources is now being put into sales and canvassing, which is making a difference. In a situation where more freight is handled per employee, more frequent follow-ups are made of key indicators in the management and development tool, M/S Progress. Reasons that this is being done include supporting employees in their work. In this context, I would also like to highlight the continuing low level of injuries. We have a zero vision for our occupational health and safety activities, as well as for damage to goods, and results in these areas for 2016 are excellent.
The picture also includes the fact that CMP has been able to absorb major costs during the year. It is primarily costs for leases and investments that have increased relatively sharply. I view the fact that, despite this, we have delivered an attractive set of results as a further show of strength from the entire company.
The business segments that have developed best are liquid and dry bulk along with car handling. Even in 2015 we received numerous new customer enquiries within bulk. CMP’s large capacity on both sides of Öresund is a major competitive advantage, and one which has contributed to many of these enquiries resulting in new business in 2016. The growth in our car handling is a reflection of the development in the private car market, where sales have increased substantially and in several cases broken new records.
In parallel with the excellent economic development, the year has been characterised by a number of major events and strategic decisions, which will contribute to strengthening CMP in the longterm. Work started in February on the new cruise terminal in Visby, and has proceeded according to plan throughout the year. The terminal in Visby will be opened in spring 2018, enabling CMP to market three attractive cruise destinations. This will strengthen our offer in this expansive part of the tourist industry. However, we are already increasing growth in this area during 2017 via the cruise operation in Copenhagen. The number of arrivals is increasing during the season and we will even reach an ”all time high” of about 850,000 in terms of cruise passengers.
During the year the operation in Norra Hamnen in Malmö was transferred to an individual subsidiary. We have not been satisfied with the development of these segments and feel that conversion into a company will generate new opportunities. The changes have already led to an improved focus on costs and in the next stage will also contribute to more new business and better earnings in the business segments affected.
During the autumn our board of directors took the formal decision to establish a new container terminal in Ydre Nordhavn in Copenhagen. Urban development in this part of the Danish capital means that our current container terminal is moving. I am proud that our owners are choosing to take this important initiative, which will have a major impact on CMP’s long-term competitiveness. The new terminal will be operational no later than 2021.
We have also instigated new initiatives in Malmö to optimise our port and terminal areas. A land exchange with Malmö City has given us access to an attractive new terminal in direct connection with other facilities. The new terminal is about 130,000 square metres and adapted for all types of transport.
CMP has also advanced its positions in the area of the environment. New environmental objectives were adopted during the year. They confirm our focus on sustainable transport solutions and on a logistics operation which encourages ”green” solutions throughout the entire transport chain. At the same time, work is proceeding on industrial symbiosis. The aim is that CMP – together with other actors in and around the port area – will to a greater degree share and re-use resources in a way which produces both economic and environmental benefits, primarily within the areas of energy, waste and logistics.
To conclude, I would like to thank all employees for their fantastic efforts during 2016. I am proud that CMP is a more sales-driven and customer-oriented organisation than was previously the case. It means that the company can focus with confidence on new business and volume growth in the coming years too.
CEO until June 2017
Barbara Scheel Agersnap is since June 21 2017 acting CEO. She replaces Johan Röstin who leaves CMP for a new position elsewhere.
|Net sales per employee, TSEK||1736||1788||1987||2027||2154|