Kuehne+Nagel expects higher demand in the second half of the year

From January to June, net sales fell by 9 percent to 11.6 billion francs and gross profit adjusted for volatile freight rates fell by 8 percent to 4.3 billion francs, the company announced on Tuesday.

As a result, the profit figures also deteriorated. Operating profit (EBIT) fell by 32 percent to CHF 778 million and net profit by 33 percent to CHF 576 million. In addition to exchange rate effects, restructuring costs of CHF 17 million also had a negative impact.

The so-called conversion rate, which describes the ratio of EBIT to gross profit, landed at 18.2% (previous year: 24.4%). This is an important key figure in the industry. Overall, the figures were again above the pre-pandemic level, Kuehne+Nagel emphasized.

As far as analysts' expectations are concerned, these were met or even exceeded. They had therefore expected an even sharper decline.

Complicated situation in the Red Sea

According to Kuehne+Nagel, global trade was characterized by the recent disruptions in supply chains. The situation in the Red Sea added to the complexity. In this context, the company reports a significant increase in demand for combined air and sea freight services.

In airfreight alone, Kuehne+Nagel handled 1.0 million tons of freight, 5 percent more than in the previous year. The company focused on profitable segments such as healthcare and semiconductors.

As a reminder, the pandemic-related "special boom" in 2021 and 2022 was followed by a long phase of normalization. Three months ago, Kuehne+Nagel also initiated a streamlining of the organization to improve efficiency and achieve greater customer proximity.

"Kuehne+Nagel performed well in the first half of 2024," summarized Chairman Jörg Wolle in the press release. And CEO Stefan Paul is preparing for higher demand in the second half of 2024. According to him, further efficiency gains are to be realized at the same time.