Kuehne+Nagel's air logistics gross profit up 68% YoY in H1 2022
Group's net turnover in H1 2022 at $21.3 billion; EBIT at $2.2 billion; conversion rate at 37.2 percent.
In the first half of 2022, the Kuehne+Nagel Group's air logistics business unit recorded a year-on-year (y-o-y) gross profit growth of 68 percent to CHF 1,613 million ($1673 million), net turnover surge of 59 percent to CHF 6.3 billion ($6.5 billion) and EBIT increase of 103 percent to CHF 826 million ($857 million).
"The closure of Russian airspace and the lockdown in Shanghai resulted in the immediate rescheduling and diversion of many routes. The operational workload was correspondingly high in the first half of 2022," reads the H1 2022 release.
Air freight volumes handled by the group were 1.1 million tonnes in the first six months of 2022.
Dr. Joerg Wolle, chairman of the board of directors of Kuehne + Nagel International AG, said, "Geopolitical and macroeconomic turmoil is challenging the global economy and especially the logistics industry. Even in this challenging environment, Kuehne+Nagel delivers what it promises: a strategically excellently positioned group that impresses with innovative customer solutions based on a global, highly adaptive network. As such, we expect demand for high-quality services to remain solid in the second half of 2022."
The release also reads, "In the second quarter of 2022, Kuehne+Nagel completed the highly regarded Cargo iQ recertification with a top rating of three stars. The standard governs the handling of every air freight shipment including necessary operational measures if a shipment deviates from plan."
In H1 2022, the Kuehne+Nagel Group's net turnover rose by 55 percent y-o-y to CHF 20.6 billion ($21.3 billion), EBIT by 112 percent to CHF 2.2 billion ($2.2 billion), earnings by 113 percent to CHF 1.6 billion ($1.6 billion) and free cash flow increased by nearly CHF 1.3 billion ($1.3 billion). The Group's conversion rate, which describes the ratio of EBIT to gross profit, was 37.2 percent.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, says: "The uncertainties and obstacles in global supply chains continued in 2022. The Covid-related lockdowns in China, the invasion of Ukraine, the exceptionally strong increase in energy prices and high inflation resulted in an even more challenging business environment. Based on our digital platforms and industry solutions, as well as the tireless efforts of our employees, we were able to deliver efficient, complex logistics solutions for our customers."