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Kuehne+Nagel reports very strong 2022 result

Kuehne+Nagel Group
CHF million
FY 2022

 

FY 2021

 

Δ

 

Q4 2022

 

Q4 2021

 

Δ

 

Net turnover39,398

 

32,801

 

20%

 

8,795

 

10,960

 

-20%

 

Gross profit11,109

 

9,896

 

12%

 

2,499

 

3,025

 

-17%

 

EBITDA4,532

 

3,679

 

23%

 

843

 

1,310

 

-36%

 

EBIT3,763

 

2,946

 

28%

 

644

 

1,121

 

-43%

 

Net earnings2,810

 

2,155

 

30%

 

494

 

813

 

-39%

 

Free cash flow3,751

 

1,793

 

109%

 

1,122

 

793

 

41%

 

*Proposal to the Annual General Meeting on May 9, 2023

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.

Stefan Paul, CEO of Kuehne+Nagel International AG: “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.

“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.”

Sea Logistics

CHF millionFY 2022

 

FY 2021

 

Δ

 

Q4 2022

 

Q4 2021

 

Δ

 

Net turnover18,753

 

13,706

 

37%

 

3,914

 

4,560

 

-14%

 

Gross profit3,479

 

2,754

 

26%

 

670

 

865

 

-23%

 

EBIT2,021

 

1,529

 

32%

 

310

 

538

 

-42%

 

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.

Air Logistics

CHF millionFY 2022

 

FY 2021

 

Δ

 

Q4 2022

 

Q4 2021

 

Δ

 

Net turnover11,715

 

10,810

 

8%

 

2,598

 

4,232

 

-39%

 

Gross profit2,965

 

2.556

 

16%

 

645

 

989

 

-35%

 

EBIT1,409

 

1.167

 

21%

 

260

 

522

 

-50%

 

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.

Road Logistics

CHF millionFY 2022

 

FY 2021

 

Δ

 

Q4 2022

 

Q4 2021

 

Δ

 

Net turnover3,997

 

3,689

 

8%

 

981

 

958

 

2%

 

Gross profit1,334

 

1,253

 

7%

 

324

 

312

 

4%

 

EBIT146

 

94

 

55%

 

26

 

19

 

37%

 

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

CHF millionFY 2022

 

FY 2021

 

Δ

 

Q4 2022

 

Q4 2021

 

Δ

 

Net turnover4,933

 

4,596

 

7%

 

1,302

 

1,210

 

8%

 

Gross profit3,331

 

3,333

 

0%

 

860

 

859

 

0%

 

EBIT187

 

156

 

20%

 

48

 

42

 

14%

 

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.

Regional results

CHF millionNet turnover 
FY 2022

 

Share of Group net turnover

 

EBIT
FY 2022

 

Share of Group EBIT

 

Europe, Middle East and Africa19,691

 

50%

 

1,322

 

35%

 

North and South America14,198

 

36%

 

1,188

 

32%

 

Asia-Pacific5,509

 

14%

 

1,253

 

33%

 

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.

Dr. Joerg Wolle, Chairman of the Board of Kuehne+Nagel International AG: “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.

“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.”

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