Coming Off a High Base Kuehne+Nagel Group Earnings Dip 50% in H1 2023

The Kuehne+Nagel Group achieved solid results in a challenging market environment in the first half of 2023. The pandemic-related special economic situation in 2021 and 2022 continued to distort the year-on-year comparisons across the entire range of figures.

Net turnover for the first six months of 2023 was US$14.6 billion, EBIT was approximately $US1.26 billion with earnings of US$990 million.

The conversion rate, which describes the ratio of EBIT to gross profit of the Group, remained at a high level of 24%.

Stefan Paul, CEO of Kuehne+Nagel International AG: "Kuehne+Nagel coped well with the transition from the exceptional economic situation shaped by the pandemic. In a weakened economic environment, Sea and Contract Logistics gained market share and kept earnings stable.

"In contrast, volumes in Air Logistics declined broadly in line with the market. While our ongoing cost control efforts became more visible in the second quarter of 2023, our strategic path is unchanged with a focus on high-quality logistics services and an extraordinary customer orientation."

DSV Reports 35% Decline in Revenues for H1 2023

In the first half of 2023, net turnover of the business unit Sea Logistics amounted to US$4.64 billion with EBIT of US$736 million.

The conversion rate remained high at 49%. Container volume in the first half of 2023 was 2.1 million TEU. Kuehne+Nagel Sea Logistics was able to gain share in an overall market that declined by around 5%.

In spring 2023, Kuehne+Nagel entered into a partnership with Volvo Cars to use 5,500 tonnes of sustainable biofuels in maritime transport. Going forward, the transports for the Swedish car manufacturer will be carried out with significantly reduced fuel emissions.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne+Nagel International AG: "In the first half of 2023, the Kuehne+Nagel Group's financial results were significantly greater than the comparable figures of the pre-Corona period and the Group has performed well in the new environment.

"In the coming years, Roadmap 2026 will remain the key driver of Kuehne+Nagel’s strategic development.

"The program, launched in March 2023, was very positively received both internally and externally and we are already seeing the first successes. Our focus remains on the provision of high-margin services and the development of market potential in Asia, Africa and the Middle East."

Read More: DB Group Reports US$363 Million Operating Profit in First Half of 2023