Kuehne+Nagel posts results for 2021
Kuehne+Nagel recorded a remarkably strong performance in financial year 2021, according to the company's release. The Group significantly increased all of its key figures relative to the previous year: net turnover climbed 61% to CHF 32.8 billion, EBIT soared 175% to CHF 2.9 billion and earnings for the year surged by 173% to CHF 2.2 billion. The conversion rate, which reflects EBIT as a percentage of the Group’s gross profit, reached 30%, far surpassing the target of 16% by 2022. All our business units contributed to this success.
The Sea Logistics business experienced an exceptionally high operational workload in 2021. This was due to the difficult market environment with bottlenecks at ports and out-of-sync supply chains.
At 4.6 million TEU, the container volume in 2021 was up 2% on the previous year. The business unit recorded net turnover of CHF 13.7 billion and EBIT of CHF 1.5 billion. The conversion rate reached 55.5%.
In 2021, the company's online Seaexplorer platform functionality was expanded significantly. For example, Kuehne+Nagel developed a “disruption indicator” to measure the efficiency of global sea freight networks. The platform creates transparency and signals potential obstructions along the supply chain due to, for example, processing inefficiency or adverse weather conditions.
The Road Logistics business unit lifted its volume in 2021 by more than 13% to a total of 24.4 million orders. In Europe, capacity utilisation was high and networks in North America were also well-booked. The company's digital booking platform eTrucknow, originally designed for Asia, was rolled out in around 20 countries across Europe, the Middle East and South America.
The business unit’s net turnover in full-year 2021 amounted to CHF 3.7 billion and EBIT jumped 52% year-on-year to CHF 94 million. At 7.5%, the conversion rate reached a record level.
The company's digital customs service, originally developed for Brexit, now offers customers worldwide coverage. The system considerably reduces the administrative workload involved in customs clearance and speeds up handling for all parties involved.
The Contract Logistics business unit saw high capacity utilisation in 2021. In particular, it rapidly expanded its pharmaceutical and e-commerce fulfilment offering. The number of distribution centres now specialising in the healthcare sector and e-commerce fulfilment totals 100 and 175, respectively.
Following the divestment of a large share of activities in the UK, the business unit’s net turnover of CHF 4.6 billion in full-year 2021 was slightly down on the previous year. By contrast, EBIT nearly doubled to almost CHF 156 million.
Integrated logistics solutions (4PL) were once again in particularly high demand. At eight global sites with KN Control Towers, specialists develop and operate offerings for flexible and efficient supply chains. This enables costs, throughput times and inventories to be optimised even in a challenging operational environment.
The Board of Directors proposes a dividend of CHF 10.00 per share to the Annual General Meeting to be held on May 3, 2022.
About Kuehne+Nagel
With over 78,000 employees at almost 1,300 sites in over 100 countries, the Kuehne+Nagel Group is one of the world's leading logistics providers. It operates in sea logistics, air logistics, road logistics and contract logistics, with a clear focus on integrated logistics solutions.