Kuehne+Nagel and DSV have published their financial results for the first nine months and third quarter respectively, reflecting the varying impact of market conditions. Kuehne+Nagel’s performance was mixed, with revenues stabilising in the third quarter after earlier declines, while DSV delivered solid growth supported by higher volumes and the announcement of the acquisition of Schenker.
Kuehne+Nagel: Q3 EBIT of CHF 455 million amid operational challenges
Kuehne+Nagel achieved a net turnover of CHF 18.0 billion during the first 9 months of the year – a slight decrease of 1% compared to the same period in 2023. EBIT (earnings before interest and taxes) was down 22% year-on-year to CHF 1.2 billion, while earnings dropped 23% to CHF 915 million.
Despite the overall decline, the company saw positive momentum in the third quarter of 2024. Net turnover increased by 19% year-on-year to CHF 6.5 billion, while gross profit rose 5% to CHF 2.2 billion. EBIT also showed a modest growth of 2% in Q3 2024 compared to Q3 2023, reaching CHF 455 million. Free cash flow improved quarter-on-quarter, increasing by 25% to CHF 292 million.
“The highly flexible logistics solutions of Kuehne+Nagel have once again proven to be a clear advantage for our customers in the face of increasing supply chain disruptions worldwide,” said Stefan Paul, CEO of Kuehne+Nagel International AG.
The Sea Logistics division generated a net turnover of CHF 6.7 billion for the first nine months of 2024, a slight decline of 2% compared to the same period last year. However, the unit’s performance in the third quarter improved, with net turnover rising 36% year-on-year to CHF 2.6 billion. EBIT for Sea Logistics stood at CHF 653 million for the nine-month period, down 25%, but increased 9% in Q3 2024 compared to Q3 2023.
Air Logistics reported a 4% rise in net turnover, reaching CHF 5.2 billion in the first nine months of 2024. However, EBIT in this division fell by 23% year-on-year to CHF 330 million. The unit handled 1.5 million tonnes of air freight, a 6% increase compared to the previous year, with growth driven by the perishable goods segment.
The Road Logistics unit recorded a net turnover of CHF 2.6 billion, down 3% from the previous year. EBIT also fell sharply by 26% to CHF 88 million. Lower utilisation of the European transport network, influenced by macroeconomic factors, contributed to the decline. Despite this, the company expanded its operations in Southeast Asia with the acquisition of City Zone Express, enhancing its less-than-truckload (LTL) services.
Contract Logistics showed resilience with a net turnover of CHF 3.5 billion, a slight decline of 3% compared to the same period in 2023. However, EBIT for this division rose 3% to CHF 162 million, with a strong performance in the third quarter, where EBIT increased 19% year-on-year.
In September 2024, Kuehne+Nagel opened a new highly automated logistics hub in Mantova, Italy, for Adidas.
While external challenges have impacted the overall performance of Kuehne+Nagel in 2024, the company remains optimistic about its strategic direction:
“The strategic streamlining of the company by removing the regional structure is beginning to bear fruit,” noted Paul.
DSV: Q3 2024 gross profit up 4.8% year-on-year
DSV Group reported a quarterly gross profit of DKK 11,080 million, marking a 4.8% increase from DKK 10,649 million in Q3 2023. Earnings before interest and tax (EBIT) before special items also saw a modest increase, rising to DKK 4,420 million, up 1.5% compared to DKK 4,396 million in the same period last year.
The positive financial performance led to a sequential growth in diluted adjusted earnings per share (EPS), which increased by 2.1%. DSV generated adjusted free cash flow of DKK 2,524 million during the quarter, although this figure represents a decline from DKK 2,666 million in Q3 2023.
In terms of overall performance, DSV reported revenue of DKK 44,095 million for the quarter, compared to DKK 35,576 million in Q3 2023. Year-to-date revenue also increased significantly, reaching DKK 123,592 million, up from DKK 114,257 million in the same period last year.
“The third quarter of 2024 has been a landmark for our company with the agreement to acquire Schenker creating a world leader within transport and logistics.” He noted that the acquisition would enhance DSV’s global network and service offerings to customers. Lund added, “Our financial results in Q3 2024 show continued positive earnings growth… driven by positive volume growth across all divisions and higher gross profit,” said Group CEO Jens H. Lund.
The Air & Sea division reported a 5.2% increase in gross profit, bolstered by higher volumes and market share gains. Specifically, sea freight gross profit increased by 11.8%, driven by both increased volumes and improved average gross profit yield. Conversely, air freight saw a slight decline in gross profit of 1.5% due to lower average yields, albeit offset by higher volumes.
The Road division maintained stable results despite a market characterised by weakened demand and low rates towards the end of the quarter. While revenue grew due to increased volumes, both gross profit and EBIT remained relatively stable amid rising cost pressures. In response to these challenges, DSV announced price increases for customers to help mitigate the impact of cost inflation.
In the Solutions division, gross profit rose by 9.3%, alongside a 9.8% increase in EBIT before special items. This growth was attributed to new customer acquisitions and increased order lines, although it faced some challenges due to the ramp-up of new sites that temporarily lowered utilisation rates.
Looking ahead, DSV has narrowed its full-year EBIT guidance for 2024 to a range of DKK 16,000–17,000 million, slightly up from a previous estimate of DKK 15,500–17,000 million. The company anticipates an effective tax rate of approximately 24% and one-off costs related to special items estimated at around DKK 650 million for the year.
The announced acquisition of Schenker, expected to close in Q2 2025, positions DSV for enhanced growth opportunities.