KUEHNE+NAGEL have posted mostly unfavourable financial results in their performance report for the first half of 2024.
The Swiss transport and logistics company saw a decline in overall profits when compared with the first half of 2023, despite K+N remaining optimistic for the future.
Net turnover for the first half 2024 (H1 2024) was down 9% compared to first half 2023, with earnings before interest and tax down a glaring 32%.
K+N say the result was impacted by negative exchange rate effects of 2%, as well as non-recurring restructuring costs of CHF 17 million (about $29 million) in the second quarter of 2024.
Sea logistics saw an earnings before interest and tax (EBIT) reduction of 38% to CHF 397 million ($686 million), while net turnover in the division was down 17% to CHF 4.1 billion (about $7 billion).
K+N asserted that the group’s ratio of EBIT was “significantly higher” than the pre-pandemic figure, at 18% in H1 2024 compared with 13% in H1 2019.
Air logistics at the company also saw lagging results, with net turnover down 4%, though the CHF 1.8 billion ($3 billion) for the second quarter of 2024 was up 9% compared with the same quarter in 2023.
“In the first half of 2024, we continued to focus consistently on the initiatives of our strategic Roadmap 2026,” Kuehne+Nagel CEO Stefan Paul said.
“The recovery in demand for air freight had a positive impact while the renewed disruptions in the Red Sea created additional complexity in supply chains worldwide.
“We are well positioned for anticipated higher demand in the second half of the year and we expect to realise further efficiency gains.”
Road logistics saw a net turnover decrease of 6%, though K+N asserted that volume was on par with the same period in 2023, with approximately 12 million orders processed.
The contract logistics sector for K+N was one of the few areas to see positive growth, with gross profit up 3%, but net turnover again down, a decrease of 6%.
Joerg Wolle, chairman of the board of directors at Kuehne+Nagel said, “Kuehne+Nagel performed well in the first half of 2024. The streamlined organisational structure, initiated by the Board of Directors in April 2024, will lead to a significant increase in efficiency and greater customer proximity.
“This will enable us to be more responsive and faster in the implementation of our strategy and to offer excellent, comprehensive logistics solutions.”
