Kuehne+Nagel records strong Q1 result
Kuehne Nagel's start to the 2021 business year was marked by a strong demand in transport services, especially for pharma and e-commerce fulfilment.
- Container volumes in the first quarter of 2021 were up 2 percent year-on-year at 1.1 million TEU.
- Contract logistics returned to organic growth of 4 percent, in line with the market.
April 26, 2021: Kuehne+Nagel's start to the 2021 business year was marked by a strong demand in transport services, especially for pharma and e-commerce fulfilment. Kuehne+Nagel achieved a net turnover of over CHF 6.0 billion, EBIT of CHF 431 million and earnings for the period of CHF 318 million were all significantly higher year-on-year.
Detlef Trefzger, CEO of Kuehne + Nagel International AG, said, "Exactly one year ago, when we were still at the beginning of the pandemic, we decided to commit to our proven strategy. Upon reflection, we are assured that we chose the correct path: in the first quarter of 2021, we were well-prepared to serve our customers' robust demand for high quality logistics services despite the tense market environment. We expect this environment to remain challenging for the remainder of another atypical year."
The positive profit trend reversal in sea logistics, already noted in the second half of 2020, continued in the first quarter of 2021. Container volumes in the first quarter of 2021 were up 2 percent year-on-year at 1.1 million TEU, despite a decline in recyclables demand. The unit's net turnover was nearly CHF 2.4 billion and EBIT CHF 206 million. The conversion rate reached a record high of 42.7 percent.
Airfreight volumes developed positively, reaching 433,000 tonnes in the first quarter of 2021 (16 percent year-on-year). Combined with strong yields, net turnover improved to CHF 1.7 billion and EBIT to CHF 163 million. The conversion rate was 40.5 percent.
In road logistics, the first quarter of 2021 was characterised by a significant increase in consignment numbers and a return of European national transport capacities to prior year levels.
Originally designed for Asia, the online booking platform for road logistics, eTrucknow, was successfully launched in Australia and Russia in the first quarter of 2021.
In the first quarter of 2021, contract logistics returned to organic growth of 4 percent, in line with the market. As a result of the divestment of part of the UK business as of January 1, 2021, turnover declined in the first quarter of 2021.
In March, the business unit entered into a strategic partnership with Jointown, the largest non-state pharmaceutical distributor in China.