Kuehne+Nagel Q3 turnover up 19% on demand for flexible services

Kuehne+Nagel reported a six percent increase in earnings at CHF 339 million for the third quarter of 2024 on increased demand for flexible logistics services due to renewed supply chain disruptions and higher quarter-on-quarter profitability per unit in sea and air logistics.

Turnover increased 19 percent to CHF 6.5 billion and EBIT was up two percent at CHF 455 million. For the first time since the end of the pandemic, EBIT and profit in the third quarter of 2024 both increased quarter-on-quarter and year-on-year, says an official release.

“The highly flexible logistics solutions of Kuehne+Nagel have once again proven to be a clear advantage for our customers in the face of increasing supply chain disruptions worldwide," says Stefan Paul, CEO, Kuehne+Nagel. "This is also reflected in our positive business development. The strategic streamlining of the company by removing the regional structure is beginning to bear fruit. We have also reached an important milestone in our strategy with the seamless migration to the cloud of our sea and air logistics transport management system.”

From January to September 2024, the Kuehne+Nagel Group reported a turnover of CHF 18 billion (down marginally), EBIT of CHF 1.2 billion (down 22 percent) and earnings of CHF 915 million (down 23 percent).

Sea logistics
Net turnover increased 36 percent to CHF 2.6 billion and EBIT was up nine percent at CHF 256 million in Q32024. Volume declined marginally to 1.115 million TEUs. "Net turnover in the business unit amounted to CHF 6.7 billion with EBIT of CHF 653 million in the period from January to September 2024. The volume through the end of September 2024 was 3.2 million containers. The conversion rate was at a high level of 42 percent. Thirty-seven new network locations have been opened so far."

Active portfolio management resulted in a like-for-like volume growth +2% in Q3, Kuehne+Nagel said in the analysts presentation. "Delayed Red Sea effects lift yields q/q, intensive cost management continues to support conversion rate improvement and Europe export volumes subdued."

Air logistics
Volume handled in Q32024 increased seven percent to 526,000 tonnes year on year and two percent QoQ. Net turnover was up 20 percent at CHF 1.8 billion but EBIT was down 12 percent at CHF 120 million.

Overall yields and unit costs were stable, and growth was centred in the Far East to North America, Kuehne+Nagel said in an analysts presentation after announcing the results.

"Net turnover in air logistics amounted to CHF 5.2 billion, up four percent with EBIT of CHF 330 million, down 23 percent, in the period from January to September 2024. In total, the unit handled 1.5 million tonnes of air freight in the first nine months of 2024 or six percent more year-on-year. Most of the growth was recorded in the perishable goods segment."

Kuehne+Nagel was able to include for the first time an Asian partner airline, Cathay Pacific, in its sustainable aviation fuel (SAF) programme. In addition, Kuehne+Nagel uses SAF for Mercedes-Benz for air freight in its own B747 capacities from Germany to the USA. This reduces CO2 emissions by around 11,000 tonnes annually, the release added.

Other businesses
Net turnover in road logistics declined three percent to CHF 2.6 billion with EBIT of CHF 88 million (down 26 percent) in the period from January to September 2024.

"Due to macroeconomic developments, utilisation of the European transport network was lower year-on-year. In August 2024, Kuehne+Nagel successfully completed the acquisition of the Malaysian company City Zone Express. As a result, Kuehne+Nagel can now offer less-than-truckload (LTL) services from China to major hubs in Southeast Asia."

With net turnover of CHF 3.5 billion and EBIT of CHF 162 million, "contract logistics once again posted a very good result for the period from January to September 2024."

In September 2024, Kuehne+Nagel opened a highly automated and sustainable logistics hub for Southern and Eastern Europe for Adidas in Mantova, Northern Italy. With an area of over 130,000 sqm, the facility can process up to half a million shipments per day in support of every retail channel – from single e-commerce parcels to bulk orders for large retailers, the release added.