Kuehne+Nagel (K+N) has seen an up-turn in its business. The company’s first quarter 2025 results, published last week, saw both higher sales and higher profits. What K+N describes as “Net Turnover” increased by 15% year-on-year to CHF 6,330m, gross profit by 8%, and EBITDA (Earnings Before Interest, Depreciation and Amortisation) by 9% at CHF 627m. The company claims to be gaining market-share.
The major driver of this improvement was a recovery in the sea-freight forwarding business. The headline figures for the ‘Sea Logistics division were an increase in turnover of 30% to CHF 2,499m, a 15% rise in gross profit, and EBIT 7% higher at CHF 210m. These numbers were flattered to a degree by the acquisition of the American road freight provider, IMC, however, the underlying business performance was still pointing upwards, with a 3% increase in containers handled and a stronger organic trend in container volumes. Profits climbed as Kuehne and Nagel was able to modestly increase EBIT per TEU.
Air freight forwarding also grew well, with net turnover up 13% at CHF1.8bn whilst EBIT increased 23% to CHF116m. Volumes handled increased by 5% compared to the first quarter of 2024. K+N implies that the automotive sector business was difficult, but electronics, including semiconductors, did well, as did perishables. Although gross profit and EBIT per tonne both declined compared to last quarter, over the year, yields rose.
Contract Logistics was stable, with net turnover up 3% and EBIT up 4% year-on-year. Road freight continued to struggle, with net turnover up 1% but EBIT down 37%. K+N complained of weak demand leading to weak network utilisation, although it did mention that there had been “strong development in customs clearance activities”.
These results might be described as reassuring for Kuehne+Nagel. Certainly, the company said that it was not changing the profit forecasts for the forthcoming year. However, such is the volatility in the market generally; this is a courageous position.
Author: Thomas Cullen
Source: Ti Insight
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