Kuehne + Nagel’s airfreight sector has had an outstanding year in 2017, growing at twice the market rate, helped by strong performances in sectors including pharmaceuticals.
Airfreight tonnage increased by 20.4 per cent, twice the market rate of 10 per cent, which itself grow at the highest rate since 2010.
Industry specific areas such as pharma and healthcare, and aerospace generated significant growth, and Kuehne + Nagel strengthened its position in the perishables business with the acquisition of two companies in Kenya and the USA.
Airfreight revenue increased from 3.9 billion Swiss francs (CHF) in 2016 to CHF4.7 billion, and earnings before interest and tax (EBIT) were up five per cent to CHF313 million.
Kuehne + Nagel International chief executive officer, Dr Detlef Trefzger says 2017 was a successful year, saying: “The consistent implementation of our business strategies resulted in strong volume growth and a clear increase in gross profit. Once again, our integrated business model has shown its strength: The effects of difficult market conditions in one business unit were more than compensated by increased profitability in the other divisions.
“With our digital solutions we further increased efficiency and improved customer value at the same time. Highlights from the past business year include the seamless integration of four acquisitions which strengthen our leading position in perishables as well as pharma and healthcare logistics.”
Net turnover for the whole company was up 12.5 per cent to CHF18.6 billion and earnings for the year were up 2.8 per cent to CHF740 million.