LOGISTICS company Kuehne+Nagel reported year-on-year decreases in its first-quarter 2023 results, but profitability remains high on pre-pandemic levels.
The Switzerland-based company saw a 31% decrease in net turnover to CHF 6.748 billion ($11.47 billion) and a 19% decrease in gross profit to CHF 2.394 billion ($4 billion).
The company pointed out that the start of 2023 was marked by geopolitical and inflation-related challenges around the world.
“In parallel, the supply chain environment quickly normalised after the boom years of 2021 and 2022,” the company said in a statement.
“Although demand for transport services declined as expected, the Kuehne+Nagel Group achieved solid results. The corona-related special economic situation distorts the comparison with the previous year. In the context of a normalised business environment and compared to the business performance before the pandemic, the first quarter of 2023 represents a record result.”
Kuehne+Nagel International CEO Stefan Paul said the macroeconomic environment remained “extremely challenging” at the start of this year.
“This does not come as a surprise as signs of significant weakening emerged last autumn, following the period of extraordinary, pandemic-related demand for logistics services,” he said.
“With our focus on cost control through the consistent exploitation of the asset light model, the Kuehne+Nagel Group was able to hold its own in this environment and expand its market share worldwide. We already see early successes from the strategic Roadmap 2026 presented in March.”
