E-commerce and perishables businesses helped Kuehne + Nagel (K+N) cushion the blow from lower air cargo volumes in the fourth quarter.
K+N's air cargo volume decreased by 2.2% to 533,000 tonnes in the fourth quarter of 2023 compared to the same quarter of 2022.
Kuehne+Nagel (K+N)'s air logistics division had net sales of CHF 1.9 billion in the fourth quarter, down 27% year-on-year. Gross profit decreased by 34% and earnings before interest and tax (EBIT) decreased by 52%.
K&N reported full-year 2023 net sales for its Air Logistics division of CHF 6.9 billion, a 41% decrease compared to 2022. Gross profit decreased by 40% and EBIT decreased by 61%.
In 2023, K+N handled nearly 2 million tons of air cargo. K+N said in its fourth-quarter and full-year earnings documents that business “normalized” in 2023 after the pandemic boom.
However, it added that “volume recovery towards the end of the year was driven by e-commerce and fresh produce.”
K+N also noted that in November it completed the acquisition of Morgan Cargo, a South African transport company specializing in the transport and handling of perishable goods. This acquisition could boost the company's performance in 2024.
K+N Air Logistics Q4 Results. Source K+N
Source: K+N
Meanwhile, the Group's net sales for the fourth quarter of 2023 were CHF 5.7 billion, down 35% year-on-year. Gross profit decreased by 18% and EBIT decreased by 50%.
Group net sales for the year were CHF 23.8 billion, down 40% compared to the previous year. In the same year, gross profit decreased by 21% and EBIT decreased by 49%.
K+N Group 2023 Results. Source: K+N
“Following the special economic conditions of 2021 and 2022, Kuehne+Nagel's performance normalized in 2023,” the company said.
Stefan Pohl, CEO of K+N, said: In the fourth quarter, we strengthened our restructuring measures to align our cost base with market conditions. At the same time, the company has succeeded in gaining market share in maritime logistics, especially in the small and medium-sized enterprises sector. We signed two important acquisition agreements with Morgan Cargo Ltd. in South Africa and Farrow Ltd. (customs broker) in Canada. We are making steady progress towards our Roadmap 2026 goals. ”
Kuehne+Nagel air cargo volumes fell again in the third quarter
Air cargo volumes for Kuehne+Nagel and DSV have significantly decreased
