Kuehne+Nagel 2022 turnover up 20%

Kuehne+Nagel reported a 20 percent increase in net turnover at CHF 39.4 billion ($41.8 billion) on 37 percent increase in sea logistics turnover.

While EBIT was up 28 percent to CHF 3.8 billion ($4 billion) and net profit increased 30 percent to CHF 2.8 billion ($3 billion)," says an official release. "The conversion rate, which describes the ratio of EBIT to gross profit of the Group, was 33.9 percent. All business units contributed significantly to the company's success. Due to the overall economic slowdown, the result in the fourth quarter of 2022 was weaker compared to the rest of the year."

Q42022 turnover dropped 20 percent to CHF 11 billion ($11.7 billion) and net earnings declined 39 percent to CHF 494 million ($524 million).

"The 2022 financial year was exceptional for Kuehne+Nagel in many respects – a year of great financial success, but also with challenges for us and our customers," says Stefan Paul, CEO, Kuehne+Nagel. "Thanks to our dedicated employees, we were able to provide our customers around the world with high-quality logistics services. Now is the right time to launch our new strategic Roadmap 2026 and ensure Kuehne+Nagel's sustainable future success with a dedicated focus on quality, customer satisfaction and employee motivation."

Roadmap 2026
The group presented its new strategic Roadmap 2026 including four mutually supporting, cross-divisional cornerstones:
1.Kuehne+Nagel Experience: quality, customer satisfaction and employee motivation;
2.Digital Ecosystem: data and technology as a competitive advantage;
3.Living ESG: concrete solutions for sustainability; and
4. Market Potential: geographic growth plans and high-margin service offerings.

"The Roadmap 2026 contains clearly defined plans, both in terms of the aforementioned focus areas in all four business units and in terms of the targeted results. At Group level, Kuehne+Nagel aims to achieve a conversion rate of 25 percent to 30 percent by 2026."

Sea/Air logistics
Sea logistics unit reported a 37 percent increase in 2022 turnover at CHF 18.8 billion ($19.9 billion) while EBIT was up 32 percent at CHF 2 billion ($2 billion). For Q4, turnover declined 14 percent and EBIT dropped 42 percent.

"Container volume was 4.4 million TEUs at the end of December 2022. The margin per container was at a historically high level in 2022. In the second half of 2022, complexity in the global ocean freight markets decreased."

For 2022, air logistics business turnover increased 8 percent to CHF 11.7 billion ($12.4 billion) and EBIT was up 21 percent at CHF 1.4 billion ($1.5 billion).

"Airfreight volume was 2.2 million tonnes at the end of December 2022. The margin per 100 kilograms was at a very high level for the full year 2022. Demand for cargo capacity remained high on most trade routes. Following the turbulence in commercial aviation in the summer of 2022, supply of capacity remained volatile in the second half of the year."