Kuehne+Nagel reports very strong 2022 result

Kuehne+Nagel closed the 2022 financial year with an exceptionally strong result. Group net turnover increased by 20% to CHF 39.4 billion, EBIT by 28% to CHF 3.8 billion and net profit by 30% to CHF 2.8 billion. The conversion rate, which describes the ratio of EBIT to gross profit of the Group, was 33.9%. All business units contributed significantly to the company’s success. Due to the overall economic slowdown, the result in the fourth quarter of 2022 was weaker compared to the rest of the year.

From today’s perspective, the macroeconomic environment will remain challenging in 2023 due to geopolitical developments and inflation. However, we expect the positive growth and earnings trend that has continued for many years to continue this year, albeit excluding the exceptional business volumes and results in financial years 2021 and 2022, which were the result of a corona-related special economic situation. 

“The 2022 financial year was exceptional for Kuehne+Nagel in many respects – a year of great financial success, but also with challenges for us and our customers. Thanks to our dedicated employees, we were able to provide our customers around the world with high-quality logistics services,”
Stefan Paul, CEO of Kuehne+Nagel International AG, said.

“Now is the right time to launch our new strategic Roadmap 2026 and ensure Kuehne+Nagel’s sustainable future success with a dedicated focus on quality, customer satisfaction and employee motivation.” 


Air Logistics

Net turnover in the Air Logistics business unit was CHF 11.7 billion and EBIT CHF 1.4 billion in the 2022 financial year. The conversion rate reached 47.5%. Airfreight volume was 2.2 million tonnes at the end of December 2022. The margin per 100 kilograms was at a very high level for the full year 2022. 

Demand for cargo capacity remained high on most trade routes. Following the turbulence in commercial aviation in the summer of 2022, supply of capacity remained volatile in the second half of the year.

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Sea Logistics

In the financial year 2022, net turnover of the Sea Logistics business unit amounted to CHF 18.8 billion and EBIT to CHF 2.0 billion. The conversion rate reached 58.1%. Container volume was 4.4 million TEU at the end of December 2022. The margin per container was at a historically high level in 2022. 

In the second half of 2022, complexity in the global ocean freight markets decreased.

Road Logistics

In the 2022 financial year, net turnover of the Road Logistics business unit amounted to CHF 4.0 billion and EBIT to CHF 146 million. 

The networks were well-utilised in all regions. The earnings situation of Road Logistics developed very positively over the course of 2022. 

Contract Logistics

In the 2022 financial year, net turnover in the Contract Logistics business unit amounted to CHF 4.9 billion and EBIT to CHF 187 million. As of December 31, 2022, the business unit managed a total of 10.3 million sqm of warehouse and logistics space. 

The Contract Logistics premises were heavily utilised worldwide. In 2022 alone, the unit implemented more than 150 new logistics projects – often large-scale warehouses with state-of-the-art technology and robotics.

Read more: Kuehne+Nagel and Apex Logistics receive the last Boeing 747-8 freighter from Atlas Air

Regional results

Dividend

The Board of Directors proposes a dividend of CHF 14.00 per share to the Annual General Meeting to be held on May 9, 2023. This corresponds to an increase of 40% compared to the previous year.

Roadmap 2026

At the occasion of the Capital Markets Day on March 1, 2023, the Kuehne+Nagel Group has presented its new strategic Roadmap 2026. The plan is designed for the next four years and represents an organic further development of Roadmap 2022, which was successfully completed at the end of December.

The goal of Roadmap 2026 is to significantly strengthen Kuehne+Nagel’s earnings power. The proven asset light model will be retained.

The Roadmap 2026 consists of four mutually supporting, cross-divisional cornerstones:

1.    Kuehne+Nagel Experience: quality, customer satisfaction and employee motivation;

2.    Digital Ecoystem: data and technology as a competitive advantage;

3.    Living ESG: concrete solutions for sustainability;

4.    Market Potential: geographic growth plans and high-margin service offerings.

The Roadmap 2026 contains clearly defined plans, both in terms of the aforementioned focus areas in all four business units and in terms of the targeted results. At Group level, Kuehne+Nagel aims to achieve a conversion rate of 25% to 30% by 2026.

“The Kuehne+Nagel Group performed extremely well in the 2022 financial year and took advantage of the opportunities that emerged from the challenging, extremely complex macroeconomic situation. The company achieved a new record in both net turnover and profit. With a dividend proposal of CHF 14.00 per share for the 2022 financial year, we want our shareholders to participate in the company’s success,” Dr. Joerg Wolle, Chairman of the Board of Kuehne+Nagel International AG, said.

“At the 2023 Capital Markets Day, the Management Board will present with the Roadmap 2026 the continuous strategic development of Kuehne+Nagel until 2026. In this way, we are setting ourselves the goal of ensuring the company’s success and its further development in the coming years, despite challenging market conditions.”