Kuehne+Nagel up year-on-year in the third quarter
Published: Wednesday, Oct 23rd 2024, 07:20
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In the third quarter, the logistics group Kuehne+Nagel recorded an increase compared to the same period last year. There was increased demand for flexible logistics services, not least due to renewed supply chain disruptions, the company said.
Net sales increased by 19 percent to CHF 6.49 billion and gross profit adjusted for volatile freight rates rose by 5 percent to CHF 2.19 billion, as the company announced on Wednesday. As a result, the profit figures also improved. Operating profit (EBIT) rose by 2 percent to 455 million and net profit by 6 percent to 339 million.
The improvements are no surprise. Analysts had expected such improvements compared to the weak prior-year period after management had expressed confidence in the further course of business in the middle of the year. Nevertheless, expectations were clearly exceeded in terms of turnover, while the other key figures were more or less met.
Conversion rate over 20 percent
As a reminder, the logistics group felt the effects of the normalization following the coronavirus boom in 2023. The conversion rate, which describes the ratio of EBIT to gross profit and is an important indicator for management, was very low at 15.6% in the last quarter of 2023. It then rose again to 18% in the first quarter of 2024 and reached 18.3% in the second quarter.
Now, at 20.8%, the 20% mark has been exceeded again. In the medium term, the company is aiming for conversion rates of 25% to 30% as part of its "Roadmap 2026" strategy.
For the first time since the end of the Covid-19 pandemic, EBIT and profit increased on a quarterly basis compared to both the previous quarter and the same period of the previous year, the company emphasized. The streamlining of the company by reducing the regional structure also contributed to the positive business development.
As usual, the company does not provide a concrete outlook for the current year.
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