The global transport and logistics company LEMAN, which is headquartered in Copenhagen, Denmark, has just published its annual report for 2023. The result shows a loss of 65 million Danish kroner, which roughly corresponds to the year’s massive investments.
For LEMAN, 2023 was a year characterized by investments, increased presence, and stabilisation despite challenges on the market such as low freight rates and falling demand, and the result also reflects a strategic commitment to invest through times of crisis, the company states:
“2023 has been a challenging year for the entire industry, but it has also been a year in which we at LEMAN have consciously chosen to invest massively and expand our presence. This can be seen, among other things, in our new offices in Mexico, Vietnam and Iceland and the takeover of the Swiss forwarding company Nauta SA, which means that we now also have six offices in Switzerland. However, we must also be honest and recognize that we have underperformed especially in the US and in the UK, but we are in the process of correcting that,” says Michael Schrøder, who is LEMAN’s Group CFO.
Investments in both facilities and IT
The investments in 2023 include, in addition to the costs for new offices in new countries, more than 50 million Danish kroner in new storage facilities in Taulov and a double-digit million amount in various advanced IT systems that will strengthen both work and customer experience for the future. These initiatives are part of LEMAN’s long-term strategy to strengthen the company’s position on the market.
“Although the immediate result may seem disappointing at first glance, because on the bottom line we have a result of minus DKK 65 million, we look positively at both our current situation and the future. We have financed the investments ourselves through our solid cash balance, which makes our business independent of interest rate movements, unlike many of our competitors, the cash balance is also ready to finance further investments, including possible acquisitions in our main markets,” Michael Schrøder continues.
Looking for growth and new opportunities
In 2023, LEMAN also set course towards a more targeted people strategy with a focus on the many colleagues, and this has meant that LEMAN has invested in various colleague-oriented initiatives, including paid leave, which should emphasize the company’s commitment to the well-being of colleagues.
“Although we naturally strive to make a profit every year, it is important to recognize the value of the investments we have made. These will not only strengthen LEMAN in the coming years, but also ensure continued growth and new opportunities,” Michael Schrøder concludes.
In 2023, LEMAN had an average of 800 employees, which is a decrease from 843 the previous year. The complete annual report can be read at LEMAN.com.
For further comments, contact Group Communications Manager Morten Scheelsbeck at Morten.Scheelsbeck@leman.com.