Kuehne+Nagel 9-month revenue up 40% at $30.6bn
K+N reported a 55% increase in yields in sea logistics and 38% increase for air logistics
The Kuehne+Nagel Group reported a 40 percent increase in turnover at CHF 30.6 billion ($30.6 billion) for the first nine months of the current financial year (January-September) on a 55 percent increase in yields in sea logistics.
EBIT increased 71 percent to CHF 3.1 billion ($3.1 billion), net earnings by 73 percent to CHF 2.3 billion ($2.3 billion) and free cash flow amounted to CHF 2.6 billion ($2.6 billion), says an official release.
"Kuehne+Nagel posted its best-ever nine-months results," says Stefan Paul, CEO, Kuehne+Nagel International AG. "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. 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.