Global freight forwarder Kuehne+Nagel (K+N) achieved a “remarkably good result” during 2020 in an environment “marked by crisis”. The year was characterised by a weak first and a strong second semester.
Operational profit was above the previous year; total reported net earnings of the year decreased only slightly compared to 2019.
Dr. Detlef Trefzger, CEO of K+N International AG, says: “Last year we proved what makes K+N successful: 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.”
Net turnover of CHF 20.4bn 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 CHF 1.1bn. Currency fluctuations had a significant negative effect of -6% on both net turnover and EBIT. Free cash flow increased by 27.7%.
Sea Logistics
| CHF million | FY 2020 | FY 2019 | Δ | Q4 2020 | Q4 2019 | Δ |
| Net turnover | 7,091 | 7,457 | -4.9% | 1,928 | 1.824 | 5.7% |
| Gross profit | 1,417 | 1,539 | -7.9% | 366 | 366 | – |
| EBIT | 423 | 456 | -7.2% | 119 | 99 | 20.2% |
The profit development of Sea Logistics recorded a very pleasing turnaround in the second half of 2020 compared to the first half of the year. Particularly in the fourth quarter, the improvement was due to the renewed increase in demand from customers in the SME sector as well as the increase in imports from Asia to Europe and North America – an extension of trends which first emerged in the third quarter.
The container volume in 2020 was 4.5m TEU. The business unit’s net turnover was CHF 7.1bn and EBIT CHF 423m. The conversion rate reached 29.9%.
In Sea Logistics, the offer to neutralise the CO2 emissions of shipments was well received by customers. In addition, the online platform Seaexplorer was further developed: it now offers details on the CO2 emissions of every service and port pair.
Air Logistics
| CHF million | FY 2020 | FY 2019 | Δ | Q4 2020 | Q4 2019 | Δ |
| Net turnover | 5,194 | 4,653 | 11.6% | 1,491 | 1,150 | 29.7% |
| Gross profit | 1,331 | 1,317 | 1.1% | 374 | 320 | 16.9% |
| EBIT* | 505 | 329 | 53.5% | 155 | 66 | 134.8% |
*Including a positive one-off effect of CHF +63m in Q3 2020 and a negative one-off effect of CHF -14m in Q4 2019.
Air Logistics has proven to be the preferred transport solution in dealing with the Covid-19 crisis. The high demand for K+N’s expertise in pharma and essential goods led to excellent results.
For the full year 2020, net turnover for the business unit improved by 11.6% to CHF 5.2bn and EBIT by 53.5% to CHF 505m. The conversion rate reached 37.9%. Overall, 2020 airfreight volumes were 1.4m tonnes (12.8% below the previous year) and in the fourth quarter alone 392,000 tonnes or 7.5% below the same period last year.
With its Net Zero Carbon programme, K+N is a pioneer in climate-friendly logistics services. For shipments flown on the air freight route Los Angeles – Amsterdam, Sustainable Aviation Fuel (SAF) has been used exclusively since January 2021.
Road Logistics
| CHF million | FY 2020 | FY 2019 | Δ | Q4 2020 | Q4 2019 | Δ |
| Net turnover | 3,222 | 3,586 | -10.2% | 842 | 904 | -6.9% |
| Gross profit | 1,089 | 1,121 | -2.9% | 277 | 275 | 0.7% |
| EBIT | 62 | 78 | -20.5% | 24 | 16 | 50.0% |
In Road Logistics, the fourth quarter of 2020 was characterised by a significant increase in number of shipments compared to the previous quarter. In particular, demand for domestic transport in Europe reached pre-crisis levels. In North America, demand for all product segments, with the exception of pharma & healthcare as well as e-commerce, remained significantly behind the previous year. However, a further market recovery was noticeable in the last quarter.
The business unit’s net turnover in 2020 was CHF 3.2bn and EBIT CHF 62m.
The digital platform Your Easy Brexit Solution, developed by K+N, enables the uninterrupted shipment of goods to and from the UK. With this digital solution, K+N customers can handle customs processes automatically, including document verification before the physical transport of goods.
Contract Logistics
| CHF million | FY 2020 | FY 2019 | Δ | Q4 2020 | Q4 2019 | Δ |
| Net turnover | 4,875 | 5,398 | -9.7% | 1,282 | 1,378 | -7.0% |
| Gross profit | 3,638 | 4,004 | -9.1% | 942 | 1,031 | -8.6% |
| EBIT* | 80 | 198 | -59.6% | -18 | 86 | -120.9% |
*Including net negative one-offs of CHF -42m in FY 2020 (Q4 2020: CHF -46m) inter alia from the divestment of parts of the Contract Logistics activities in the UK. FY 2019 figures include positive one-offs of CHF +66m (Q4 2019: CHF +43m).
Contract Logistics achieved market share gains in pharma & healthcare and in e-commerce fulfilment as well as productivity gains.
In 2020, the business unit’s net turnover reached CHF 4.9bn and EBIT of CHF 80m. Adjusted for extraordinary effects in 2019 and 2020, EBIT decreased by 7.6%.
Integrated Logistics services (4PL) were in particularly high demand in 2020. At eight global locations with KN Control Towers, specialists develop and operate solutions for flexible and efficient supply chains. This enables costs, throughput times and customers’ inventories to be optimised even in volatile times.
Regional results
| CHF million | Net turnover FY 2020 | Share of Group net turnover | EBIT FY 2020 | Share of Group EBIT |
| Europe, Middle East and Africa | 12,432 | 61.0% | 444 | 41.5% |
| North and South America | 5,457 | 26.8% | 308 | 28.8% |
| Asia Pacific | 2,493 | 12.2% | 318 | 29.7% |
Dr. Joerg Wolle, Chairman of the Board of Directors of K+N International AG, says: “We were able to close the year 2020 with a record operating result – this shows the strength and resilience of our company. K+N 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.”
