Kühne+Nagel reports strong first quarter of 2022

The start of the 2022 financial year was characterized by continued strong demand for high-quality transport services. Kühne+Nagel was able to improve all key figures compared to the previous year: Net revenue increased by 68% to CHF 10.2 billion, EBIT rose by 160% to CHF 1.1 billion, net profit grew by 162% to CHF 832 million, and free cash flow increased by nearly CHF 1.0 billion. The group’s conversion rate, which describes the ratio of EBIT to gross profit, was 38.1%.

* for 2022 including acquisition effect

(Schindellegi) In light of the emergency that has arisen due to the situation in Ukraine, the company decided to provide CHF 10 million for immediate assistance in the form of aid supplies and free transport services.

Dr. Detlef Trefzger, CEO of Kühne + Nagel International AG, says: “The strong demand for investment and consumer goods continued in the first quarter of 2022. In contrast, the already tense situation in supply chains worsened. We were well prepared for this and were able to reliably meet our customers’ needs for high-quality logistics services.”

Sea Freight

The ongoing congestion at many international seaports also characterized the first quarter of 2022. The tense market environment again led to a very high processing effort for individual transports in the sea freight segment.

Container volume in the first quarter of 2022 was 1.0 million TEU, with net revenue for the segment at CHF 4.9 billion and EBIT at CHF 621 million. The conversion rate reached 63.8%.

Since January, Kühne+Nagel has been measuring congestion in front of many ports worldwide with the “Disruption Indicator.” This tool captures the waiting times of container ships in the eleven most important international port clusters daily and is integrated into the industry-recognized real-time service “Sea Explorer.”

Air Freight

The closure of Russian airspace required a short-term change in air freight routes between Asia and Europe. Together with the overall limited capacities, this led to a significantly higher level of service effort in the first quarter of 2022.

Air freight volume in the first quarter of 2022 was 574,000 tons, with net revenue at CHF 3.1 billion and EBIT at CHF 425 million. The conversion rate reached 52.0%.

To secure capacity for strategic customers, Kühne+Nagel signed a long-term contract with Atlas Air for two Boeing 747-8 freighters. The two aircraft are chartered on an exclusive basis and will be deployed on international routes starting in the third quarter of 2022.

Land Transport

The land transport segment was able to significantly increase volume in the first quarter of 2022 due to well-utilized network transports.

Net revenue for land transport improved by 13% to CHF 982 million in the first quarter of 2022 compared to the previous year, and EBIT increased by 25% to CHF 30 million.

In March, the segment established a partnership for greater transparency in supply chains. As part of the research project Chorus, which belongs to Google’s parent company Alphabet, sensor and orchestration technologies are being developed for locating and tracking goods. Using artificial intelligence, temperature or humidity data, for example, will be processed and interpreted seamlessly.

Contract Logistics

The contract logistics segment recorded very good utilization in the first quarter of 2022 and consistently expanded its service offerings for pharmaceuticals and e-commerce fulfillment.

Net revenue for the segment was CHF 1.2 billion, 5% above the previous year, and EBIT increased by 16% to CHF 44 million.

In the first quarter, contract logistics commissioned several highly automated facilities, e.g., for consumer goods. Additionally, European storage capacities for pharmaceuticals in Belgium were expanded by approximately 40%.

Photo: © Kühne+Nagel