DSV and Kuehne+Nagel (K+N), two of of the world’s most prominent logistics service providers, have released their financial results for the third quarter of 2024 (Q3-24).
Both companies posted strong Q3-24 results, but for K+N this was especially needed, with a strong 3Q performance from the company’s sea and air logistics division among the only positives.
The Swiss company saw its sea logistics turnover increase 31.7% when compared with Q3-23, to CHF2.9 billion (AUD$5.03 billion), when compared to the first two quarters of 2024, which saw dips of 27.1% and 4.5% respectively, compared with Q3-23.
For K+N’s road and contract logistics, the company again saw a decrease in turnover and gross profit when compared with 2023, except for the third quarter, which saw small but steady percentage increases in those categories.
Quarter over quarter results for K+N saw the company thumped with declined results, primarily in Q1 and Q2 2024, with the total Q3-24 net turnover change of 19.3% the most positive figure.
Overall however, the company’s results for the first 9 months of 2024 could not match up with 2023, with declined percentages across the major categories, hurt especially by poor results in Q1 and Q2 this year.
Stefan Paul, CEO of Kuehne+Nagel International AG said, “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”.
“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,” Mr Paul said.
“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.”
Meanwhile, DSV also saw strong Q3-24 results, including an adjusted free cash flow generation to DKK 2.5 million (AUD$500,000).
The Danish company’s Q3-24 revenue was posted at DKK 44 million, up from the same quarter in 2023, which saw DKK 35 million.
The year-to-date for 2024 also currently sits higher than the same period last year, at DKK 123 million to DKK 114 million comparatively.
DSV group CEO Jens H. Lund said the third quarter of 2024 has been a landmark for the company, with the agreement to acquire Schenker creating a “world leader” within transport and logistics.
“We look forward to welcoming our colleagues from Schenker and together build a world-class transport and logistics company with a unique global network and service offerings to our customers,” Mr Lund said.
“Our financial results in Q3 2024 show continued positive earnings growth. Our quarterly gross profit and EBIT before special items have increased on a year-over-year basis for the first time since Q3 2022, driven by positive volume growth across all divisions and higher gross profit.”
DSV’s air and sea sectors continued positive development with volume growth and market share gains in Q3-24, leading to an increase in gross profit of 5.2% compared to the same period last year.
For sea freight, gross profit increased 11.8% in the same period, driven by higher volumes and improved average gross profit yield, while gross profit for air was down 1.5% due to lower average gross profit yield partly offset by higher volumes.
Based on its first nine months of 2024 performance, and expectations for the rest of the year, DSV revised the full-year earnings before interest and tax outlook for 2024 earlier this month to be in the range of DKK 16 to 17 billion.
