Kuehne+Nagel
Kuehne+Nagel reported revenues of CHF 5.5 billion in the first three months of 2024.
However, this amounted to an 18% decrease year-on-year compared to the 6.7 billion francs reported in the same period last year.
When it comes to gross profit, Kuehne+Nagel reported a slightly smaller decline. In the period January-March 2024, it was 13% lower than in the first quarter of 2023, amounting to 2.1 billion francs.
On the other hand, EBIT (profit before tax) was already 39% lower than a year earlier, and reached the level of 376 million francs.
The net profit of the Swiss group amounted to 270 million francs in the first quarter of 2024, which was a decline of 40% year-on-year.
“In a challenging environment, Kuehne+Nagel started the business year 2024 with solid but lower year-over-year results. Our focus on efficiency and streamlined structures allowed us to reduce costs per unit by 12% in Sea Logistics and 14% in Air Logistics. By discontinuing the regional structure, we have laid the foundations for further growth and enabled more direct access to our customers worldwide. Additionally, we have strengthened our offering for our South East Asia customers through our strategic acquisition of City Zone Express, a Penang, Malaysia-based Road Logistics service provider,” said Stefan Paul, CEO of the Swiss group, summing up the first quarter.
Maritime
Year-on-year, Kuehne+Nagel’s maritime segment reported declining results. These are a consequence of falling rates in maritime transport for several quarters. After reaching sky-high levels in 2021 and 2022, in 2023, rates returned to pre-pandemic levels.
As a result, the revenues of the company’s Sea Logistics division decreased in Q1 2024 by 27.8% year-on-year, reaching 1.926 billion francs. The EBIT result amounted to 197 million francs and was over 42%.
Every year. Interestingly, the volumes were higher than in the first quarter of 2023 – they reached 1 million TEU, which was 1.5%. Every year. This gives hope that something has changed in global trade.
The aviation segment also experienced a sharp decline in financial results although they were slightly lower than those of the naval division. Air Logistics’ revenues amounted to 1.583 billion francs (a decrease of 15%).
As in the case of the maritime division, EBIT decreased significantly – by over 43%, reaching up to 94 million francs. The increase in volumes was also a positive sign. It was stronger than in the case of “sea” because it amounted to 3.4%.
Every year (up to 491,000 tons). This is probably the result of greater demand for air transport as a result of disruptions to sea transport due to the situation in the Red Sea.
Contract and Road Logistics
In the case of the Road Logistics segment, the company reported a slightly smaller revenue decline than the naval and air divisions (10% year-on-year, 860 million Francs).
On the other hand, EBIT suffered similarly to other segments. It was over 42% lower than in the first three months of 2023, reaching 30 million Francs.
Contract logistics performed relatively well, which has been a characteristic feature of the results of logistics operators in recent quarters. Revenues from this segment decreased year-on-year by 9.8% to 1.139 million francs. As for EBIT, the company reported a much smaller decline here than other divisions (11%).
DSV
The results of the Danish logistics operator DSV were similar. The company’s revenues amounted to DKK 38.34 billion in Q1 2024.
This is 5% less than in the same period of 2023. Gross profit was 8.6%, which is less than the year before, and amounted to DKK 10.265 billion. EBIT dropped more sharply, by over 20% to DKK 3.641 billion.
The Danish operator completed its first three months of 2024 in profit (DKK 2.39 billion). Nevertheless, it was 27% less year-on-year.
Sea and air freight down too
DSV’s dominant division in terms of revenues was Sea & Air, which in the first quarter of 2024 reached DKK 22.7 billion – 11.5% less than the previous year.
The segment’s gross profit decreased by 16%, while EBIT dropped by 26%. This means that the declines were stronger than for the group’s total performance. This shows that both sea transport as well as aviation still face much lower rates than in previous years.
In turn, volumes in both segments improved compared to the beginning of 2023. In air transport, they were by 2.3% higher, and in the sea, it was up by as much as 8.9%.
Positive signs on the roads
The Danish operator’s road transport boasted better results than in the case of Kuehne+Nagel. Revenues improved year-on-year by 3.3% (up to DKK 10.425 billion).
Gross profit was also better than in the first three months of 2023, albeit marginally by 0.7% (DKK 1.964 billion). Only the EBIT result in Q1 2024 (DKK 490 billion) was weaker than a year earlier, albeit by 1.8%.
The Logistics Solutions division had a good quarter. Its revenues increased by 7.3% up to DKK 5.989 billion. However, the EBIT result was lower; it fell 8.8% compared to Q1 2023 and amounted to DKK 500 million.
The company also published its EBIT forecast for the current year. It is expected to be in the range of DKK 15-17 million.
GXO’s ambitious plans
The American giant specialising in contract logistics, GXO Logistics, also published its preliminary results for the first quarter.
The company’s revenues are expected to reach $2.4 billion. This is an increase from the $2.2 billion reported in Q1 2023.
The EBITDA result (operating profit before deduction of interest on interest-bearing liabilities, taxes and depreciation) is expected to be at the level of $154 million, slightly below the $158 million reported in the period January-March 2023.
At the same time, the group expects a loss of $36 million. A year earlier, the company was $59 million in profit. The loss in Q1 2024 resulted from expenses related to court cases.
The American company also published its forecast for its year end results. Organic revenue growth is expected to be between 2-5% year-on-year.
The EBITDA result is expected to be between $760-790 million. This compares to the 2023 result of $749 million.
Seifert Logistics
The German logistics operator Seifert Logistics has also published its results for the entire year 2023.
Sales revenues were to reach €320 million, which was an increase of 20% compared to the previous year.
The increase in revenue was achieved thanks to, among others, takeover of Lorel Logistik in Bremen, as well as the opening of a new location and the expansion of two hubs.
The German company also has ambitions to continue the upward trend this year. At the end of 2024, it is expected that its revenues will reach €350 million.
Photo: Alf van Beem, CC0, via Wikimedia Commons