Kuehne+Nagel expects higher demand in the second half of the year
Published: Tuesday, Jul 23rd 2024, 07:20
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The logistics group Kuehne+Nagel generated less gross profit and earned significantly less in the second quarter of 2024. However, following the normalization phase at the end of the coronavirus boom, the company is experiencing an upturn in demand for air freight transport services.
Net sales increased by 1 percent to 5.97 billion Swiss francs from April to June, as the company announced on Tuesday. However, gross profit adjusted for volatile freight rates fell by 3 percent to 2.19 billion.
As a result, the profit figures also deteriorated. Operating profit (EBIT) fell by 23 percent to 402 million and net profit by 25 percent to 298 million. In addition to exchange rate effects, restructuring costs of 17 million also had a negative impact.
The so-called conversion margin, which indicates the ratio of EBIT to gross profit, landed at 18.3% (previous year: 23.2%). This is considered an important key figure in the industry. Overall, the figures were again above the pre-pandemic level, emphasized Kuehne+Nagel.
After the end of the coronavirus boom, the figure slipped to 15.6% in the fourth quarter of 2023; before that, Kuehne+Nagel had achieved conversion margins of over 30% in some cases in 2021 and 2022.
In the medium term, Kuehne+Nagel wants to achieve significantly higher figures again. Rates of 25 to 30 percent are targeted.
The company is not providing a concrete outlook for the current year. "We are well positioned for the expected higher demand in the second half of 2024 and will realize further efficiency gains," said Group CEO Stefan Paul in the press release.
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