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Kuehne+Nagel Group posted a net turnover of 6.487 billion Swiss francs (CHF) in the third quarter, up 19% from CHF5.44 billion in the same period last year
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EBIT and profit both rose quarter-on-quarter and year-on-year for the first time since the COVID-19 pandemic
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For the first three quarters of the year, net turnover was CHF18.0 billion, a 1% slide
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Renewed supply chain disruptions spurred higher demand for flexible logistics services
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Sea and Air logistics experienced higher quarter-on-quarter profitability
Kuehne+Nagel Group posted a net turnover of 6.487 billion Swiss francs (CHF) in the third quarter, up 19% from CHF5.44 billion in the same period last year.
Earnings before interest, taxes, depreciation, and amortization for the latest quarter grew 3% to CHF661 million from CHF640 million year-on-year while earnings before interest and taxes (EBIT) rose 2% to CHF455 million from CHF446 million. Earnings jumped 6% to CHF339 million from CHF321 million.
This is the first time since the COVID-19 pandemic that EBIT and profit both rose quarter-on-quarter and year-on-year, the company said in a statement.
For the first three quarters of the year, net turnover was, however, down 1% to CHF18 billion from CHF18.159 billion. EBIT sank 22% to CHF1.2 billion while earnings of CHF915 million tanked 23%.
Stefan Paul, CEO of Kuehne+Nagel International AG, said: “The highly flexible logistics solutions of Kuehne+Nagel have once again proven to be a clear advantage for our customers in the face of increasing supply chain disruptions worldwide. This is also reflected in our positive business development. The strategic streamlining of the company by removing the regional structure is beginning to bear fruit. We have also reached an important milestone in our strategy with the seamless migration to the cloud of our Sea and Air Logistics transport management system.”
The net turnover of the company’s Sea Logistics business unit soared 36% to CHF2.6 billion for the third quarter.
From January to September though, net turnover of CHF6.7 billion was down 2%, with EBIT of CHF653 million for the first three quarters of the year. By end-September, the volume was 3.2 million containers (TEU).
According to the media release, the digital platform seaexplorer.com “proved to be a reliable source of information for Sea Logistics customers worldwide, especially during recent supply chain disruptions such as the Red Sea crisis and the port strike on the US East and Gulf Coasts.”
The Air Logistics business unit’s net turnover for the third quarter alone advanced 20% to CHF1.8 billion.
For January to September 2024, net turnover was CHF5.2 billion, up 4%, with EBIT of CHF330 million. Total tons of air freight for the period was 1.5 million, mostly in perishable goods.
For the Road Logistics business unit, net turnover was CHF2.6 billion, down 3%, with EBIT of CHF88 million for the nine-month period. Utilization of the European transport network dropped year-on-year due to macroeconomic developments, the company said.
The Contract Logistics business unit posted a 3% drop in net turnover to CHF3.5 billion on EBIT of CHF162 million.
In August, this year, the company completed its acquisition of Malaysian company City Zone Express. In September, the company opened a highly automated and sustainable logistics hub for Southern and Eastern Europe for Adidas in Mantova, Northern Italy, with an area in excess of 130,000 sqm.
The facility can process up to half a million shipments daily in support of every retail channel – from single e-commerce parcels to bulk orders for large retailers, according to the news release.
