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Home3PL/4PLK+N more than doubles earnings in 1H

K+N more than doubles earnings in 1H

  • Group net turnover amounted to CHF13.3 billion in the first half of 2021, up 35% compared to last year, while EBIT rose to CHF1.0 billion for a 147% year-on-year growth
  • K+N’s sea logistics business accounted for half of the company’s EBIT, rising 202% year-on-year to CHF504 million
  • High year-on-year growth was also recorded in the air logistics division, with demand for transport of pharmaceutical goods, essential goods and e-commerce especially high
  • The road logistics business experienced a 108% increase in EBIT, rising to CHF54 million from a year ago

Swiss logistics company Kuehne+Nagel (K+N) more than doubled its earnings in the first half of the year on strong demand for logistics services as the global economy continued to recover from the impact of the COVID-19 pandemic.

The K+N group said it delivered “an outstanding financial performance” in the first six months as all business units significantly exceeded prior-year earnings.

Group net turnover amounted to CHF13.3 billion (US$14.5 billion), which is 35% higher than in the first six months of last year, while EBIT rose to CHF1.0 billion for a 147% year-on-year growth.

In the second quarter, group net turnover registered at CHF7.2 billion, up 48% from a year ago, while EBIT came up to CHF605 million, higher by 157% than in the second quarter of 2020, the company said in a release.

“This year, we are experiencing uniquely high consumer demand combined with supply chain uncertainty,” said Detlef Trefzger, CEO of Kuehne+Nagel International AG. “We expect demand to remain strong and look forward with confidence to continuing the positive development.”

Joerg Wolle, K+N group chair, said K+N closed the second quarter of 2021 “with an absolute record result,” reflecting the group’s strategic course, its pursuit of digitalization and the payoff from its targeted expansion in Asia.

K+N’s sea logistics business accounted for half of the company’s EBIT, rising 202% year-on-year in the first half of the year to CHF504 million. Net turnover increased by 55% on last year to CHF5.2 billion in the first half of this year, with the second quarter showing 71% year-on-year growth as net turnover rose to CHF2.8 billion. At 2.2 million TEUs, container volumes in the first half of 2021 were up 3% on the same period last year.

High year-on-year growth was also recorded in the air logistics division, with demand for transport of pharmaceutical goods, essential goods and e-commerce especially high. The acquisition of Apex also had an impact on the results, especially on the trans-pacific trade route, with the Asian freight forwarder being consolidated at the start of May.

In the first half of 2021, the unit’s net turnover increased 62% to nearly CHF4 billion while EBIT increased 124% to CHF406 million. Air freight volumes were up 44% on last year at 988,000 tonnes. In the second quarter, net turnover was up 70% over Q2 2020 with CHF2.3 billion, and EBIT added up to CHF243 million for a 121% growth over last year.

Sharp demand for ecologically friendly solutions such as sustainable aviation fuel has led K+N to enter into partnerships with American Airlines, IAG Cargo and Air France-KLM Martinair Cargo.

For its road logistics business, K+N experienced a 108% increase in EBIT, which rose to CHF54 million in the first half of the year compared to the same period of 2020. Net turnover increased 14% year-on-year to CHF1.8 billion in the first half of 2021. In the second quarter, EBIT totaled CHF30 million, up 233% from the year-ago level, while net turnover increased to CHF939 million, a 30% increment from the second quarter of last year.

Finally, the contract logistics business, like the air segment, was aided by strong growth in pharmaceuticals and e-commerce. Despite that, net turnover and gross profit both experienced year-on-year decreases of 6% and 8%, respectively, in the first half of 2021, with net turnover dropping to CHF2.2 billion and gross profit dropping to CHF1.7 billion.

EBIT, however, increased by 60% compared to 2020, to CHF72 million in the first of 2021. In the second quarter, net turnover was down 2% to CHF1.1 billion, while gross profit declined 3% to CHF827 million. But contract logistics EBIT expanded to CHF34 million, a 2% increase from the second quarter of 2020.

In the first half of the year, contract logistics opened several highly automated facilities including new distribution centers for the semiconductor and consumer goods industries.

Photo courtesy of K+N

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