K+N Adapts to "Normalized" Landscape: E-commerce and Perishables Drive Year-End Recovery

E-commerce and perishables business helped soften the blow of a drop in airfreight volumes for Kuehne+Nagel (K+N) in the fourth quarter.

Airfreight volumes at K+N dropped 2.2% to 533,000 tonnes in the fourth quarter of 2023 compared to the same quarter in 2022.

Net turnover in Kuehne+Nagel’s (K+N) air logistics division in the fourth quarter was CHF1.9bn, down 27% year on year. Gross profit was down 34% and earnings before interest and taxes (EBIT) was down 52%.

K&N reported full year 2023 net turnover of CHF6.9bn for the air logistics division, down 41% on 2022. Gross profit was down 40% and EBIT was down 61%.

Nearly 2m tonnes of airfreight were handled by K+N in 2023. In its fourth quarter and full-year results document, K+N said business “normalised” in 2023 following the pandemic boom years.

However, it added: “Volume recovery into year-end (was) driven by e-commerce and perishables.”

K+N also noted that in November it completed the acquisition of South African freight forwarder Morgan Cargo, specialised in the transport and handling of perishable goods. The acquisition could help boost 2024 results for the company.

Meanwhile, the Group’s fourth quarter net turnover in 2023 was CHF5.7bn, down 35% year on year. Gross profit was down 18% and EBIT was down 50%.
Group net turnover for the year was CHF23.8bn, down 40% year on year. Gross profit was down 21% for the year and EBIT was down 49%.

“Kuehne+Nagel’s business results normalised in 2023 following the special economic situation in the years 2021 and 2022,” said the company.

K+N chief executive Stefan Paul said: “Kuehne+Nagel closed the financial year 2023 with an overall good performance in a persistently challenging environment. We adjusted our cost base to market conditions by intensifying restructuring measures in the fourth quarter. At the same time, we succeeded in gaining market share in Sea Logistics, especially in the SME segment. We signed two important acquisitions with Morgan Cargo from South Africa and Farrow (customs broker) from Canada. We are making solid progress toward our Roadmap 2026 goals.”