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Net turnover in first half of 2022 at CHF20.6 billion (US$21.4 billion); earnings before interest and tax at CHF2.2 billion; conversion rate at 37.2%
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Kuehne+Nagel reaps rewards from delivery of efficient and complex logistics solutions for volatile supply chains
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Group chairman Joerg Wolle said despite challenges, the group expects a solid second-half of 2022 as demand for high-quality services remains strong
Kuehne+Nagel Group defied volatile supply chains and posted strong performance in the first of the year. Net turnover rose 55% year-on-year to CHF20.6 billion (US$21.4 billion), the company announced on July 25.
Despite global challenges, the Switzerland-based global logistics provider saw earnings before interest and tax (EBIT) surge 112% to CHF2.2 billion and earnings by 113% to CHF1.6 billion.
Free cash flow increased 304% y-o-y to CHF1.7 billion. The group’s conversion rate, which describes the ratio of EBIT to gross profit, was 37.2%.
“The uncertainties and obstacles in global supply chains continued in 2022. The Covid-related lockdowns in China, the invasion of Ukraine, the exceptionally strong increase in energy prices and high inflation resulted in an even more challenging business environment,” said Dr. Detlef Trefzger, chief executive of Kuehne+Nagel International AG.
“Based on our digital platforms and industry solutions, as well as the tireless efforts of our employees, we were able to deliver efficient, complex logistics solutions for our customers.”
Employing more than 79,000 people in over 100 countries, Kuehne+Nagel is one of the world’s leading industry players with operations in sea, air, road and contract logistics, and a focus on integrated logistics solutions.
In sea logistics business, the group said this year’s first half was characterized by the continuing tense situation in the major seaports, especially in Shanghai and in Europe. Container volumes reached 2.2 million TEUs, the unit’s net turnover was CHF9.9 billion and EBIT was CHF1.2 billion. The conversion rate reached 62.2%.
The group’s real-time Sea Explorer platform provided sea logistics customers with comprehensive data to optimize their supply chains. The Sea Explorer Disruption Indicator, which measures waiting times at ports, is at a high level of 10.4 million TEU waiting days.
In the air logistics unit, the closure of Russian airspace and the lockdown in Shanghai resulted in the immediate rescheduling and diversion of routes, leading to a correspondingly high operational workload in the first half.
Air freight volumes were 1.1 million tons during the period. The unit’s net turnover reached CHF6.3 billion and EBIT was CHF826 million. The conversion rate was at 51.2%.
In the road logistics business, the networks were fully utilized in all regions. Shipment volumes again increased significantly in the first half of 2022. The business unit’s net turnover improved 12% y-o-y to CHF2 billion and EBIT by almost 50% to CHF80 million.
In contract logistics, the group said it again achieved very high utilization of warehouse space in the first half and consistently expanded its range of healthcare and e-commerce services. The result was a net turnover of CHF2.4 billion for the period, up 7% y-o-y. EBIT increased 13% to CHF81 million.
In May, Kuehne+Nagel laid the cornerstone for the new regional distribution center for Adidas in Southern Europe. From 2024, around 700 new jobs will be created in the 130,000-square-meter, highly automated and CO2-neutral facility in Mantova, Italy.
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