The main contributor to the Group’s result are the business units Sea and Air Logistics. In 2022 major profitability improvements were generated in both Sea and Air Logistics business units.
Sea Logistics volumes decreased by 4.9 per cent to 4,386,000 TEUs. Besides the Full-Container-Load (FCL) business, specialised services for temperature controlled cargo in reefer containers, pharma and e-commerce have significantly contributed to the result. In an uncertain and volatile market environment Kuehne+Nagel maintained its global leading position in Sea Logistics. From a regional perspective, the volume increase of imports in Europe and North America from Asia has continued in 2022. Despite the challenges in capacity at the beginning of the year and the change into a situation of overcapacity at its end, the high service intensity for all shipments due to extended and unreliable supply chains persisted. Managing towards a favourable service mix and operational efficiency under the difficult circumstances contributed to significantly increased margins. In 2022, the absolute amount of EBIT increased by 32.2 per cent compared to the previous year, while the ratio of EBIT to gross profit (conversion rate) increased to 58.1 per cent (2021: 55.5 per cent).
It remains the Group’s target to achieve volume growth that is in line with the market putting yield optimisation at the forefront of the decision making. The Group is committed to develop its sustainability solutions towards a zero carbon future. With its commitment to provide customers with access to reliable, high standard low carbon maritime fuels and the goal of a leading market position in CO2e transparency, the Group adds to its ambition on the Sea Logistics profitability and continuous efficiency improvements.
TEUs ’000
* Seafreight export TEU‘s not separately reported.
| CHF million | 2022 | 2021 | 2020 |
|---|---|---|---|
| Turnover | 20,608 | 15,662 | 8,973 |
| Net turnover | 18,753 | 13,706 | 7,091 |
| Gross profit | 3,479 | 2,754 | 1,417 |
| EBITDA | 2,062 | 1,561 | 451 |
|
EBIT EBIT in per cent of gross profit (conversion rate) |
2,021 58.1 |
1,529 55.5 |
423 29.9 |
| Number of operating staff | 12,855 | 11,806 | 10,393 |
| TEUs '000 | 4,386 | 4,613 | 4,529 |
Global Air Logistics volumes have increased in 2022 in combination with the acquired volumes from Apex, the Group recorded higher volumes by 0.5 per cent, totalling 2,232,000 tons, achieving a number one market position in the global airfreight market in 2022.
EBIT-to-gross-profit margin increased to 47.5 per cent in 2022 (2021: 45.7 per cent). EBIT increased by 20.7 per cent compared to the previous year.
In 2022, the increase in demand for air transport services in the first half of the year was generated from positive volume development but also from challenges in seafreight supply chains. This in combination with an extended period of low availability of belly capacity due to low frequency of passenger travel has led also in the airfreight market to capacity shortage and high freight rates.
At the end of the year the situation has turned towards a situation of weak demand and overcapacity in the markets with subsequent pressure on the yields.
Similar to the situation in seafreight, a favorable service mix, strong development in the trans-pacific market, unprecedented access to charter capacity and operational efficiency under the difficult circumstances contributed to stable margins.
To support customers transitioning to a low carbon business model, the Group has entered into cooperation with key carriers to further promote and deploy the use of sustainable aviation fuel (SAF).
Tons ’000
Source: quarterly company publications.
| CHF million | 2022 | 2021 | 2020 |
|---|---|---|---|
| Turnover | 12,358 | 11,480 | 5,817 |
| Net turnover | 11,715 | 10,810 | 5,194 |
| Gross profit | 2,965 | 2,556 | 1,331 |
| EBITDA | 1,489 | 1,230 | 600 |
|
EBIT EBIT in per cent of gross profit (conversion rate) |
1,409 47.5 |
1,167 45.7 |
505 37.9 |
| Number of operating staff | 11,056 | 10,793 | 7,845 |
| Tons '000 | 2,232 | 2,220 | 1,433 |
Road Logistics had an increase in net turnover by 8.3 per cent in 2022, due to a strong demand in the first three quarters for land transport activities in Europe. The Group continued to expand its service offering through the Europe-wide road transportation network. The key performance indicator EBITDA to net turnover margin improved to 5.2 per cent from previous year’s 4.3 per cent. EBIT increased to CHF 146 million (2021: CHF 94 million).
During the entire year 2022, Road Logistics operations continued to experience a high utilisation of its networks. Additionally digital solutions drove a strong yield development in Asia and North America.
With the consistent operational performance even in volatile markets and the expansion of services to industry-specific solutions, Road Logistics continues its contribution to the success of the Group’s integrated logistics offering.
Kuehne+Nagel is committed to decarbonise its own truck fleet to achieve a 60 per cent representation of zero-emission vehicles by 2030. This includes investing in electrification for short and long haul (BEV and FCEV). Additionally Kuehne+Nagel offers road biofuels (HVO) and other technologies to support customers today.
| CHF million | 2022 | 2021 | 2020 |
|---|---|---|---|
| Turnover | 4,594 | 4,390 | 3,633 |
| Net turnover | 3,997 | 3,689 | 3,222 |
| Gross profit | 1,334 | 1,253 | 1,089 |
| EBITDA | 207 | 157 | 119 |
|
EBIT EBIT in per cent of gross profit (conversion rate) |
146 10.9 |
94 7.5 |
62 5.7 |
| Number of operating staff | 9,806 | 9,723 | 9,363 |
With an increasingly strong proposition on the market, Contract Logistics had a record performance in the year 2022. With more than 150 new logistics projects for customers, Contract Logistics continuously increases its contribution to the Group’s results.
The focus on specialised end-to-end solutions for industries such as high-tech, consumer goods, pharmaceuticals, healthcare, and e-commerce fulfilment led to numerous new customer contracts. The net turnover (net of currency impact) increased by 7.3 per cent compared to 2021 and the business was able to gain market share in pharma & healthcare services and in e-commerce fulfilment. The EBITDA to net turnover margin was 15.7 per cent versus 15.9 per cent in 2021.
Regarding renewable energy, Kuehne+Nagel has achieved 100 per cent renewable electricity for all Contract Logistics sites in 2022. In addition to maintain this, the Group aims to increase production of clean energy on-site with solar panels.
| CHF million | 2022 | 2021 | 2020 |
|---|---|---|---|
| Turnover | 5,474 | 5,167 | 5,389 |
| Net turnover | 4,933 | 4,596 | 4,875 |
| Gross profit | 3,331 | 3,333 | 3,638 |
| EBITDA | 774 | 731 | 750 |
|
EBIT EBIT in per cent of gross profit (conversion rate) |
187 5.6 |
156 4.7 |
80 2.2 |
| Number of operating staff | 34,529 | 34,309 | 39,360 |
| Warehousing and logistics space in sqm | 10,331,470 | 10,206,925 | 11,343,955 |
| Idle space in sqm | 121,798 | 277,661 | 227,889 |
| Idle space in per cent | 1.2 | 2.7 | 2.0 |