Q3 22: Solid headline numbers, but ZIM cuts earnings guidance

ZIM has just released its Q3 22 trading update.

(Source ZIM)

One key highlight is here:

“The Company revised its guidance for the full-year 2022 and now expects to generate Adjusted EBITDA of between $7.4 billion and $7.7 billion and Adjusted EBIT of between $6.0 billion and $6.3 billion. Previously the Company expected to generate Adjusted EBITDA of between $7.8 billion and $8.2 billion and Adjusted EBIT of between $6.3 billion and $6.7 billion.”

In pre-market trade @ 7.35am EST, the stock changes hands at $27.1 (+2.9%).

––> Profits and margins fell significantly in Q3 22, on a comparable basis, but quarterly revenues were higher at $3.2n and free cash flow was only ~$100m below Q3 21 ($1.72bn).

It added that the board had declared a dividend of about $354m –> $2.95 a share, “reflecting approximately 30% of third quarter 2022 net income”.

(The dividend will be paid on December 7, 2022 to holders of ZIM ordinary shares as of November 29, 2022.)

In his prepared remarks, CEO Eli Glickman said:

“Our third quarter and nine-month 2022 results reflect outstanding execution and elevated profitability. While market conditions remained volatile, we delivered strong EBITDA and EBIT margins and generated net income of $1.17 billion in the third quarter. Given our significant cash generation, and consistent with our prioritization of returning capital to shareholders, we have declared this year over $1.26 billion, or $10.55 per share, in dividends on account of 2022 results, including a Q3 dividend of approximately $354 million, or $2.95 per share.”

The full release can be downloaded here.