-
Kuehne+Nagel’s earnings sank 33% in the first half of 2024
-
Earnings before income and taxes dropped 32%
-
Net turnover was down 9%
-
For the second quarter alone, earnings declined 25% from the same period last year
Kuehne+Nagel’s earnings sank 33% to CHF 576 million in the first half of the year from CHF 860 million year-on-year.
Earnings before income and taxes (EBIT) dropped 32% to CHF 778 million from CHF 1.1 billion in the first half last year. Net turnover of CHF 11.6 billion declined 9% from CHF 12.7 billion.
“The result was impacted by negative exchange rate effects of two percent in the first half of 2024 and non-recurring restructuring costs of CHF 17 million in the second quarter of 2024,” according to a company news release.
The conversion rate, which describes the ratio of EBIT to the Group’s gross profit, reached 18% in the first half of 2024 — higher than the pre-pandemic figure of 13% in the same period of 2019.
For the second quarter, the Swiss logistics company reported a 25% decline in earnings at CHF 298 million compared to CHF 398 million from the prior year period. Net turnover inched up 1% to CHF 6 billion from CHF 5.9 billion during the second quarter of 2023.
READ: Kuehne+Nagel reports lower earnings in Q1 2024
“In the first half of 2024, we continued to focus consistently on the initiatives of our strategic Roadmap 2026. The recovery in demand for air freight had a positive impact while the renewed disruptions in the Red Sea created additional complexity in supply chains worldwide,” said Kuehne+Nagel chief executive officer Stefan Paul.
“We are well positioned for anticipated higher demand in the second half of the year and we expect to realise further efficiency gains,” he added.
For its sea logistics business unit, net turnover amounted to CHF 4.1 billion with EBIT of CHF 397 million in the first half, down 17% and 38%, respectively.
Container volume at the end of June 2024 was 2.1 million standard container units (TEU), according to the company.
“Kuehne+Nagel is implementing sustainable solutions for a growing number of customers. For example, the business unit Sea Logistics recently started using biofuel for the transport of relief goods on behalf of the Dutch IDA Foundation. This results in a CO2e emissions reduction of around 85% compared to the use of fossil fuels,” the company said.
For its air logistics business unit, net turnover totaled CHF 3.4 billion with EBIT of CHF 210 million in the first six months of the year, up 4% and 28%, respectively.
Air logistics saw increased volumes as the unit handled more than one million tons of air freight for the period, or 5% more year-on-year.
“Volume growth developed in line with the addressable market and focused on profitable segments such as healthcare and semicon,” the company said.
Kuehne+Nagel said demand for combined air-sea logistics services saw strong growth in the first half of the year, as some customers sought to shorten transit times due to the Red Sea situation.
Road logistics and contract logistics reported 6% declines in net turnover at CHF 1.87 billion and CHF 2.47 billion, respectively.
“Kuehne+Nagel performed well in the first half of 2024. The streamlined organisational structure, initiated by the Board of Directors in April 2024, will lead to a significant increase in efficiency and greater customer proximity. This will enable us to be more responsive and faster in the implementation of our strategy and to offer excellent, comprehensive logistics solutions,” said Dr. Joerg Wolle, Kuehne+Nagel board chairman.
