Airfreight continued to plump Kuehne + Nagel’s results in 2018, with tonnage growing by 11 per cent to 1.7 million tonnes, achieving significantly higher growth than the overall market.
Air freight revenues were up 18.1 per cent to CHF 5.6 billion (USD 5.6 billion) and EBIT improved by 13.4 per cent to CHF 355 million.
The world’s largest forwarder saw its revenues for 2018 increase by 11.7 per cent year-on-year to CHF 24.8 billion, while earnings before interest and tax (EBIT) was up 5.3 per cent to CHF 987 million and net profit rising 4.3 per cent to CHF 772 million.
Kuehne + Nagel says industry-specific solutions for the pharma & healthcare and aviation industries played an important role in this air freight growth.
“Kuehne + Nagel pursues an active M&A strategy and acquired Quick International Courier, a company in a high growth market that is one of the global leaders in time-critical transport and logistics solutions,” the company says.
Due to this strong growth in volume, consistent cost control and further productivity gains, EBIT grew by 13.4 per cent in airfreight, the global forwarder says. At 29.5 per cent, the conversion rate was once again at a high level for the industry, it adds.
Commenting on the results, Detlef Trefzger, CEO of Kuehne + Nagel International AG, says: “2018 was another successful year for Kuehne + Nagel. Despite the market weakening at the end of the year, we succeeded in increasing our net turnover, gross profit and EBIT once again.
“The consistent implementation of our business strategy was decisive for this success. By introducing additional digital platforms, with new highly specialised solutions and targeted acquisitions, we reached important milestones last year and will continue to pursue our journey.
“Even though the growth momentum of the global economy slowed down at the end of 2018, we confirm our goals for the year ahead. In 2019, we aim at growing twice as fast as the market and improving our results further, complemented with selected acquisitions to our portfolio,” Trefzger adds.