Global transport and logistics company, Kuehne + Nagel, recorded operational profit in 2020 which was driven in part by growth in pharmaceuticals and e-commerce.
The year 2020, according to Kuehne + Nagel, was characterised by a weak first and a strong second semester.
“Kuehne + Nagel achieved a remarkably good result in an environment marked by crisis,” the company said in a statement.
“Operational profit was above the previous year; total reported net earnings of the year decreased only slightly compared to 2019.”
Net turnover of 20.4 billion CHF (approx. €18.3 billion) for the full year 2020 was below the 2019 figure due to lower volumes in the first half.
EBIT, on the other hand, was almost one percentage point higher at 1.1 billion CHF (approx. €991.3 million).
Currency fluctuations had a significant negative effect of -6 per cent on both net turnover and EBIT. Free cash flow increased by 27.7 per cent.
“Last year we proved what makes Kuehne + Nagel successful,” said Kuehne + Nagel International AG CEO, Dr Detlef Trefzger.
“Within a very short period of time, we adapted to the volatile market environment.
“We won new business and at the same time were able to position ourselves as a reliable and responsible partner for our customers and suppliers.”
The company’s Road Logistics division reported a significant increase in the number of shipments compared to the previous quarter.
Demand in Europe for Q4 2020 reached pre-crisis levels while demand for all product segments, with the exception of pharma, healthcare and e-commerce, remained significantly behind the previous year in North America. The company noted market recovery was noticeable in the last quarter.
Road Logistics’ net turnover in 2020 was 3.2 billion CHF (approx. €2.9 billion) and EBIT 62 million CHF (approx. €55.9 million).
Meanwhile, Contract Logistics achieved market share gains in pharma & healthcare and e-commerce fulfilment as well as productivity gains.
In 2020, the business unit’s net turnover reached 4.9 billion CHF (approx. €4.4 billion) and EBIT of 80 million CHF (approx. €72 million). Adjusted for extraordinary effects in 2019 and 2020, EBIT decreased by 7.6 per cent.
The company also reported positive outcomes for its Sea Logistics and Air Logistics business units.
“We were able to close the year 2020 with a record operating result – this shows the strength and resilience of our company,” said Dr Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG.
“Kuehne + Nagel stands for entrepreneurial vision, dynamism and a highly motivated team who is fully committed to serving our customers and business partners.
“With the successful completion of the restructuring of Contract Logistics, we are now ideally equipped for continued positive development.
“In view of Asia being the world’s fastest growing economic region, the announcement of the acquisition of Apex Logistics in February 2021 is a significant milestone. The Board of Directors looks forward to the year 2021 with confidence.”
In recent news, Kuehne + Nagel has agreed to acquire Apex International Corporation.