Kuehne + Nagel net turnover up by 5.3% in H1 2019

July 24, 2019: Logistics specialist Kuehne + Nagel Group has reported an increase in net turnover by 5.3 percent, gross profit by 5.5 percent and EBIT (earnings before interest and taxes) by 2.0 percent in the first half of 2019, compared to the previous year's period. The growth received momentum through sea freight and overland, while air freight fell, said the company.

While the overall market grew by only 2.5 percent, Kuehne + Nagel managed 103,000 units more than in the same period of the previous year, registering a growth of 4.5 percent. EBIT increased by 11.9 percent to CHF 235 million in comparison to the previous year's period. The EBIT-to-gross-profit ratio (conversion rate) reached an industry-leading high level of 30.1 percent.

The net turnover in overland increased by 3.3 percent and gross profit by 4.9 percent. Growth in overland business slowed down in the second quarter in line with market trends. Germany and France were primary growth drivers in Europe. EBIT improved by 4.7 percent to CHF 45 million. Due to falling oil prices, intermodal business in the US and project business in Middle East & Africa stagnated.

Kuehne + Nagel's airfreight volume decreased by 5.8 percent to 813,000 tons compared to the same period of the previous year. However, growth has been attributed to industry solutions for pharma & healthcare, as well as for perishables. At CHF 174 million, EBIT was down by 4.4 percent compared to the previous year's period.

Lastly, in contract logistics the net turnover increased by 4.4 percent and gross profit by 2.7 percent compared to the same period of the previous year. Positive results were shown due to new business in pharma & healthcare, as well as e-commerce fulfilment. EBIT was below last year's figure at CHF 57 million.

Detlef Trefzger, CEO of Kuehne + Nagel International AG said, "The Kuehne + Nagel Group achieved a high level result in the first half of 2019. This was due to the consistent implementation of our strategy in all business units. Currently our focus is on addressing the significant changes in airfreight market conditions and on continuing our restructuring activities in contract logistics. With our initiatives to improve our technological capabilities we will become more cost effective and improve customer service. We are well set to successfully meet the challenges of an ever demanding market."