Logistics operators’ declines are slowing, while signs of growth have emerged

Kuehne + Nagel

In the first half of this year, the Swiss Kuehne + Nagel group achieved revenues of 11.55 billion francs, marking a 9% decrease compared to the same period last year.

The group’s EBITDA (operating profit before interest, taxes, and depreciation) fell by 22% year-on-year to 1.19 billion francs. Net profit was 33% lower than the previous year, although the group remained profitable, with a net profit of 576 million francs.

Notably, the second quarter showed signs of market improvement. Revenues in April-June increased by 1% year-on-year. Although EBITDA and net profit decreased by 15% and 25% respectively, these declines were milder than those in the first quarter.

“The return of demand for air transport has had a positive impact while renewed disruptions in the Red Sea have created additional complications in supply chains around the world. We are well-positioned for the expected higher demand in the second half of the year and expect to realize further efficiency benefits,” noted Stefan Paul, CEO of Kuehne + Nagel.

The naval division suffered from disturbances in the Red Sea, with revenues reaching 4.05 billion francs—a 17% decline year-on-year. EBIT fell by 38% to 397 million francs. Gross profit decreased by 22% to just over 1 billion francs.

However, in Q2, the declines were less severe: revenues decreased by 3%, gross profit by 18%, and EBIT by 32%. In the first half of 2024, Kuehne + Nagel transported 2.1 million TEUs (20-foot containers), matching the result from the first half of 2023.

As for the aviation division, it recorded smaller losses, with revenues at 3.4 billion francs (down 4% year-on-year), gross profit at 822 million francs (down 12%), and EBIT at 210 million francs (down 28%). Declines were smaller in Q2 2024, and revenues even increased in the April-June period. In the first half of 2024, the Air Logistics department transported 1 million tons of air freight—5% more year-on-year.

In terms of road transport, Kuehne + Nagel’s road transport division saw a 6% decline in revenues, a 2% decrease in gross profit, and a 29% drop in EBIT. An improvement was noted in Q2, with gross profit increasing by 3% year-on-year. The volume of transported goods remained similar to the previous year, at 12 million orders.

Kuehne + Nagel’s contract logistics department boasted the best year-on-year results, reflecting a trend among many logistics operators. Revenues of 2.3 billion francs were 6% lower year-on-year, while EBIT fell by 5% to 105 million francs. Conversely, gross profit improved by 3% to 1.76 billion francs.

DSV

In the first half of 2024, the DSV group reported revenues of DKK 79.5 billion, a 2% increase compared to the same period last year. A similar trend to Kuehne + Nagel was observed, with higher growth in Q2. DSV’s revenues grew by 9.6% in the April-June period.

Analyzing the distribution of revenues among particular segments, the Air & Sea division had revenues of DKK 47.3 billion, a 2.3% decline year-on-year.

The road transport department improved its result by 6% to DKK 21 billion, while the Solutions division saw a significant growth of 12.3%, reaching DKK 12.9 billion. Despite these gains, EBIT fell by 16.6% year-on-year to DKK 7.74 billion, and net profit declined by 22.65% to DKK 5.25 billion.

In the second quarter, growth accelerated across segments: maritime and aviation division revenues increased by 8% year-on-year, road transport by 9%, and logistics solutions by 17%.

In terms of transported volumes, DSV organized the transport of 1.3 million TEUs (an increase of 6% year-on-year) in the first half of this year. By air, DSV transported 684,300 tons of cargo, also a 6% year-on-year increase.

DSV slightly adjusted its EBIT forecast for the entire 2024 to DKK 15.5-17 billion, narrowing the previous range of DKK 15-17 billion.

DHL

Deutsche Post DHL’s revenues reached EUR 40.89 billion, only 0.3% less than the previous year. Segment-specific performance varied. The express delivery division achieved revenues of EUR 12.2 billion, down 1.4% year-on-year.

The international forwarding division had revenues of EUR 9.5 billion, an 8% decline year-on-year, reflecting ongoing challenges in the forwarding market. In contrast, the supply chain, e-commerce, and postal services on the German market reported revenue growth of 4.1%, 9.5%, and 2.8% respectively.

In the second quarter, global forwarding and express shipments saw slight profit increases year-on-year (0.8% and 1.6%). However, EBIT for the entire group dropped by 20% to EUR 2.66 billion, and net profit decreased by 21.4% to EUR 1.484 billion.

DB Schenker

DB Schenker, still owned by German railways and undergoing a sale process, had a weaker first half of the year compared to 2023. Group revenues were EUR 9.4 billion, down from EUR 10.1 billion in the first half of 2023.

Operating profit (EBIT) was EUR 520 million, lower than the EUR 600 million recorded in the same period of 2023.

Despite these declines, the results for 2024 are significantly better than pre-pandemic levels. In the first half of 2019, the group’s revenues were EUR 8.5 billion, with an EBIT of EUR 200 million.

Overall, while logistics operators have faced significant challenges and declines in the first half of 2024, the second quarter has brought some positive signs. Improvements in various segments and a slowdown in the rate of decline suggest potential for growth in the latter half of the year.