Kuehne+Nagel Group reports 40% increase in turnover

The Kuehne+Nagel Group has achieved a 40% increase in turnover recording of US $30.6billion for the first nine months of the current financial year (January-September) on a 55 percent increase in yields in sea logistics.

Stefan Paul, CEO, Kuehne+Nagel confirmed the report and said EBIT scooped a 71% increase to US $3.1 billion. Net earnings increased to US $2.3billion which is a 73% jump while free cash flow amounted to US $2.6 billion

“Kuehne+Nagel has posted its best-ever nine-months results. However, higher energy prices, broad-based inflation as well as geopolitical tensions drive additional volatility in supply chains. At the same time, the easing in sea and air freight markets translates to some relief for our customers,” says Stefan Paul, CEO, Kuehne+Nagel International AG.

Flexibility

“Our asset-light business model is primarily focused upon responding to our customers’ worldwide needs in a flexible manner while ensuring a high quality of service.” Sea logistics volume down, revenue up Net turnover increased 62 percent to CHF 14.8 billion ($14.8 billion) and EBIT was CHF 1.7 billion ($1.7 billion), up 73 percent YoY on 55 percent increase in yields. “Container volumes were 3.3 million TEU through the end of September 2022.

In the third quarter of 2022, the average yield was maintained at an unchanged high level year-on-year. Overall, complexity in global sea freight markets steadily decreased in the first nine months of 2022 while volatility steadily increased in major trade routes.

Kuehne+Nagel once again championed environmentally friendly technologies in sea freight. With the purchase of biofuel linked to the shipment of 50,000 TEU in the third quarter of 2022, customers were given easy access to directly CO2e emission-free transport. Volumes were down 4 percent for January-September compared to last year and down 5 percent in Q32022. The current focus is on yield and product mix, the management said during an analysts presentation. Air logistics yields up Net turnover increased 39 percent to CHF 9.1 billion ($9.1 billion) and EBIT was CHF 1.1 billion ($1.1 billion), up 78 percent, for the period January to September 2022.

Yields were up 38 percent compared to last year. Air freight volumes were 1.7 million tonnes through the end of September 2022. Air Logistics also maintained relatively high average yields in the third quarter of 2022, marking a significant increase on the prior year’s level.

“Commercial airline operations were volatile in the first nine months of 2022 due to the overall geopolitical situation and level of uncertainty. Even so, demand for cargo capacity on most trade routes was positive. Kuehne+Nagel Air Logistics further expanded its healthcare logistics footprint in the third quarter of 2022. With “MedConnex,” the business unit launched regular charter flights, e.g. for vaccines, from the pharma hub in Belgium to the Americas, Asia and Africa.” The current focus is on customer experience,” the management said during the presentation.