Kuehne+Nagel net turnover grows 55% YoY in first six months of 2022
In the first half of 2022, group's air logistics business unit recorded y-o-y gross profit growth of 68% to $1673 mn.
In the first six months of 2022, the Kuehne+Nagel Group's net turnover rose by 55 percent year-on-year to CHF 20.6 billion ($21.3 billion), EBIT by 112 percent to CHF 2.2 billion ($2.2 billion), earnings by 113 percent to CHF 1.6 billion ($1.6 billion) and free cash flow increased by nearly CHF 1.3 billion ($1.3 billion). The Group's conversion rate, which describes the ratio of EBIT to gross profit, was 37.2 percent.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, says: "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. 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."
Dr. Joerg Wolle, chairman of the board of directors of Kuehne + Nagel International AG, said, "Geopolitical and macroeconomic turmoil is challenging the global economy and especially the logistics industry. Even in this challenging environment, Kuehne+Nagel delivers what it promises: a strategically excellently positioned group that impresses with innovative customer solutions based on a global, highly adaptive network. As such, we expect demand for high-quality services to remain solid in the second half of 2022."
In the first half of 2022, the Kuehne+Nagel Group's air logistics business unit recorded a year-on-year (y-o-y) gross profit growth of 68 percent to CHF 1,613 million ($1673 million), a net turnover surge of 59 percent to CHF 6.3 billion ($6.5 billion) and EBIT increase of 103 percent to CHF 826 million ($857 million).
In the business unit sea logistics, the first half of 2022 was characterised by the continuing tense situation in the major seaports – especially in Shanghai and in Europe. The planning and execution of the individual transports were complex, and their handling resulted in a high operational workload. Container volumes in the first six months of 2022 were 2.2 million TEU, the unit's net turnover was CHF 9.9 billion and EBIT was CHF 1.2 billion. The conversion rate reached 62 percent.
In business unit road logistics, the networks were fully utilized in all regions. Shipment volumes again significantly increased in the first half of 2022. In the first six months of 2022, the business unit's net turnover improved by 12 percent year-on-year to CHF 2.0 billion and EBIT by almost 50% to CHF 80 million.
The business unit contract logistics again achieved a very high utilisation of warehouse space in the first half of 2022. It consistently expanded its range of services for healthcare and e-commerce fulfilment. At CHF 2.4 billion, the business unit's net turnover for the first six months of 2022 was 7 percent higher year-on-year. EBIT increased by 13 percent to CHF 81 million.