Truck shipping

Kuehne+Nagel: Strong profit growth continues in 2022

  • Kuehne+Nagel well positioned in a complex market environment
  • Net turnover in 9M: CHF 30.6 billion; EBIT CHF 3.1 billion; conversion rate 36.2%
  • Best results over nine months
Kuehne+Nagel Group
million francs
9M 2022 9M 2021 Δ Q3 2022 Q3 2021 Δ
Net sales 30,603 21,841 40% 9,972 8,568 16%
Gross profit 8,610 6,871 25% 2,712 2,544 seven%
EBITDA 3,689 2,369 56% 1,109 971 14%
EBIT 3,119 1,825 71% 924 789 17%
net profit 2,316 1,342 73% 688 578 19%
Free movement of capital 2,629 999 163% 918 575 60%

In the third quarter of 2022, the Kuehne+Nagel group continued to perform well in the market. From January to September 2022, net sales increased by 40% to CHF 30.6 billion, EBIT by 71% to CHF 3.1 billion and net profit by 73% to CHF 2.3 billion francs. Free cash flow amounted to CHF 2.6 billion. The Group’s conversion rate is 36.2%.

Stefan Paul, CEO of Kuehne+Nagel International AG: “Kuehne+Nagel has published its best results in nine months. However, rising energy prices, widespread inflation as well as geopolitical tensions are driving additional volatility in supply chains. At the same time, the easing of the sea and air freight markets translates into some relief for our customers. Our asset-based business model is primarily focused on meeting the global needs of our customers in a flexible manner while ensuring high quality of service.

Sea logistics

million francs 9M 2022 9M 2021 Δ Q3 2022 Q3 2021 Δ
Net sales 14,839 9,146 62% 4,970 3,904 27%
Gross profit 2,809 1,889 49% 867 809 seven%
EBIT 1,711 991 73% 503 487 3%

Net sales of the Sea Logistics business unit amounted to 14.8 billion francs and EBIT to 1.7 billion francs for the period from January to September 2022. The conversion rate reached 60 .9%. Container volumes were 3.3 million TEU through the end of September 2022. In the third quarter of 2022, the average yield remained at a high level unchanged year-on-year.

Overall, the complexity of global ocean freight markets has steadily declined over the first nine months of 2022, while volatility has steadily increased across major trade routes.

Kuehne+Nagel once again championed environmentally friendly technologies in ocean freight. With the purchase of biofuel linked to the shipment of 50,000 TEUs in the third quarter of 2022, customers were able to easily access transport directly without CO2e emissions.

Air Logistics

million francs 9M 2022 9M 2021 Δ Q3 2022 Q3 2021 Δ
Net sales 9,117 6,578 39% 2,793 2,602 seven%
Gross profit 2,320 1,567 48% 707 608 16%
EBIT 1,149 645 78% 323 239 35%

Net sales of the Air Logistics business unit amounted to 9.1 billion francs and EBIT to 1.1 billion francs for the period from January to September 2022. The conversion rate reached 49 .5%. Air cargo 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 from the level of the previous year.

Commercial airline operations have been volatile in the first nine months of 2022 due to the overall geopolitical situation and the level of uncertainty. Despite this, demand for cargo capacity on most trade routes has been positive.

Kuehne+Nagel Air Logistics further expanded its logistics footprint in the healthcare sector in the third quarter of 2022. With “MedConnex”, the business unit launched regular charter flights, for example for vaccines, from the pharmaceutical hub in Belgium to the Americas, Asia and Africa.

Road logistics

million francs 9M 2022 9M 2021 Δ Q3 2022 Q3 2021 Δ
Net sales 3,016 2,731 ten% 983 922 seven%
Gross profit 1,010 941 seven% 326 311 5%
EBIT 120 75 60% 40 21 91%

Net sales for the Road Logistics business unit amounted to CHF 3.0 billion and EBIT to CHF 120 million for the period January to September 2022. High network utilization in all regions again resulted in significant revenue growth. Overall, the result for the third quarter of 2022 was very strong.

By installing photovoltaic systems on the roofs of trucks in the long-haul segment, Kuehne+Nagel is setting a new example of reducing CO2 emissions in road logistics. In addition, the first 25 electric trucks have been purchased for short distance distribution in France.

Contract logistics

CHF million 9M 2022 9M 2021 Δ Q3 2022 Q3 2021 Δ
Net sales 3,631 3,386 seven% 1,226 1,140 8%
Gross profit 2,471 2,474 0% 812 816 0%
EBIT 139 114 22% 58 42 38%

The net sales of the Contract Logistics business unit amounted to 3.6 billion francs while the EBIT totaled 139 million francs for the period from January to September 2022. The use of space warehousing worldwide was once again very high. Growth in the third quarter of 2022 was more pronounced year-on-year.

In contract logistics, Kuehne+Nagel opened new healthcare distribution centers in Ireland (Dublin) and the United States (Indianapolis). Both sites are strategically located near their respective international airports.