Half-year results 2021 of Kühne+Nagel more than doubled

The recovering global economy in the first half of 2021 led to strong demand for logistics services. The Kühne+Nagel Group recorded outstanding business development in this environment; all areas significantly exceeded the previous year’s results. The group’s net revenue in the first six months of 2021 was CHF 13.3 billion, 35% above the previous year’s period, and EBIT more than doubled to over CHF 1.0 billion.

(Schindellegi) Dr. Detlef Trefzger, CEO of Kühne + Nagel International AG, says: “This year, we are experiencing an exceptionally high consumer demand alongside supply chains that are difficult to plan. Thanks to the tireless efforts of our employees, the successful implementation of our strategy, and agile logistics solutions, we have once again managed to meet the increased service requirements of our customers in a challenging market environment. We continue to expect strong demand and look forward with confidence to a sustained positive development.”

Seafreight

In the second quarter of 2021, the trend towards the transport of higher-value products in sea freight continued. The increased customer demand for these services, coupled with limited container capacity and reduced productivity across the entire supply chain, required an exceptionally high service intensity.

Container volume in the first half of 2021 was 2.2 million TEU, 3% above the previous year’s period. The net revenue of the business unit was CHF 5.2 billion, and EBIT was CHF 504 million. The conversion rate reached a record value of 46.7%.

Information on the current transport situation on the online platform Seaexplorer proved particularly valuable for customers.

Air freight

Thanks to tailored solutions – such as combined sea and air freight offerings – air freight experienced significant volume growth and strong market share gains in the first half of 2021 amid globally limited transport capacities. Solutions for the transport of pharmaceutical and system-relevant goods as well as e-commerce were particularly in demand.

From May onwards, the initial consolidation of Apex also contributed to the overall results. The company is one of the leading logistics providers in Asia, particularly in the transpacific region. In conjunction with Kühne+Nagel, customers are offered an attractive service portfolio in the competitive Asian logistics market, especially in the areas of e-commerce fulfillment, hi-tech, and e-mobility.

Air freight volume in the first half of 2021 was 988,000 tons, 44% above the previous year’s period. Net revenue amounted to CHF 4.0 billion, and EBIT was CHF 406 million. The conversion rate was 42.3%.

Environmentally friendly transport solutions, such as the use of Sustainable Aviation Fuel (SAF), led to increased demand. Partnerships were established with American Airlines, IAG Cargo (British Airways), and Air France KLM Martinair Cargo.

Land transport

In land transport, the first half of 2021 was characterized by a significant increase in shipment numbers, maximizing network utilization. Particularly in the European general cargo business, Kühne+Nagel continued to accept customer orders and was able to process them with the usual high quality.

The net revenue of the business unit in the first half of 2021 was CHF 1.8 billion, and EBIT more than doubled to CHF 54 million compared to the previous year’s period.

The digital customs clearance platform “Your Easy Brexit Solution,” originally designed for Brexit, was further rolled out in the second quarter of 2021 due to its great success and is now available for digital customs clearances worldwide. In the Asia-Pacific region, digital bookings via eTrucknow saw strong growth. This platform is now used in 18 countries.

Contract logistics

In the first half of 2021, contract logistics was able to expand its business with offerings for pharmaceuticals and e-commerce fulfillment. These segments now account for about 80% of new customer business.

Due to the UK contract logistics portfolio sold in January 2021, net revenue was slightly below the previous year’s period at CHF 2.2 billion in the first half of 2021. EBIT improved by 60% to CHF 72 million.

In the first half of the year, contract logistics was able to commission several highly automated facilities, including new distribution centers for the semiconductor and consumer goods industries.

Chairman of the Board’s Comment

Dr. Jörg Wolle, Chairman of the Board of Kühne + Nagel International AG: “Kühne+Nagel was able to conclude the second quarter of 2021 with an absolute record result. This is partly the result of our strategic decisions and initiatives from previous years, as well as an early and successful digital breakthrough. Our company stands not only in these special times for entrepreneurial foresight and a highly motivated team. Not least, the targeted expansion of our positions in Asia is increasingly paying off.”

Photo: © Kühne+Nagel