Kuehne+Nagel (K+N) faces a challenging start to 2024 as airfreight-related turnover and profit decrease.
In the first quarter of 2024, K+N experienced an 18 percent decline in turnover and a 13 percent drop in gross profit compared to the same period in 2023. The Air Logistics segment mirrors this decline, with net turnover totaling just under CHF1.6bn and earnings before interest and taxes (EBIT) reaching CHF94m.
Despite handling 491,000 tons of airfreight, a 3.4 percent increase from Q1 2023, K+N’s financial performance fell short of expectations. Negative exchange rate effects further impact results, with a 3 percent decrease relative to 2023.
K+N’s efforts to enhance its logistics capabilities are evident with the addition of a new temperature-controlled area at New York’s JFK Airport. The facility’s 7,200 sq m storage space strengthens K+N’s healthcare logistics offerings in the United States.
Stefan Paul, CEO of K+N, acknowledges the challenging environment but remains optimistic, highlighting cost reductions achieved through efficiency and streamlined structures in Sea and Air Logistics.
In a strategic move, K+N transitions to direct reporting among its country organisations, discontinuing the regional structure. This change aims to simplify responsibilities, enhance global consistency, and foster closer customer relationships, facilitating quicker adaptation to market dynamics and business decisions.
Paul emphasises that by eliminating the regional structure, K+N is poised for future growth and better positioned to serve its customers worldwide directly.
