“Covid period keeps distorting yoy comparisons,” reports Kuehne+Nagel amid first-half US$1bn profit

Covid period keeps distorting yoy comparisons reports KuehneNagel amid first half.jpg

Switzerland-headquartered transportation company Kuehne+Nagel Group reported a net turnover of US$14.6 billion (CHF 12.7 billion) for the first six months of 2023, earnings before interest (EBIT) of approximately US$1.3 billion (CHF 1.1 billion) and earnings of US$990 million (CHF 860 million).

Meanwhile, the conversion rate, which describes the ratio of EBIT to gross profit of the company, reached 24%.

According to Kuehne+Nagel, “The pandemic-related special economic situation in 2021 and 2022 continued to distort the year-on-year comparisons across the entire range of figures.”

Stefan Paul, CEO of Kuehne+Nagel International AG, commented, “Kuehne+Nagel coped well with the transition from the exceptional economic situation shaped by the pandemic. In a weakened economic environment, Sea and Contract Logistics gained market share and kept earnings stable. In contrast, volumes in Air Logistics declined broadly in line with the market.”

Regarding the sea logistics sector of the Group, in the first half of 2023, the net turnover of Kuehne+Nagel’s business unit Sea Logistics amounted to US$5.7 billion (CHF 4.9 billion) with EBIT of US$736 million (CHF 639 million). The company’s container volume in this period was 2.1 million TEUs.

Additionally, in the road logistics sector, the net turnover of Kuehne+Nagel’s business unit Road Logistics was US$2.2 billion (CHF 1.9 billion) with an EBIT of US$107 million (CHF 93 million) in the first six months of the year.

The company said that one important factor driving the significant increase in EBIT in the first half of 2023 was the ongoing implementation of RoadLOG, Kuehne+Nagel’s proprietary transport management system (TMS) for road shipments.

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