Swiss logistics company Kuehne + Nagel reported a decline in turnover and EBITDA in the first quarter of the year, despite signs of improving demand. The company saw a decrease in revenue across all four divisions – ocean forwarding, air forwarding, road freight, and contract logistics, although there was a gradual recovery in volumes.
CEO Stefan Paul acknowledged the challenges faced but highlighted the company’s focus on efficiency and streamlined structures, which helped reduce costs per unit in sea and air logistics. The recent changes in the organizational structure, including the removal of regional management structures in the sea freight division, are expected to contribute to rebuilding margins.
The company reported a decline in sea freight revenues and EBIT, although there was a slight increase in volumes. Air freight revenues also decreased, despite an increase in volumes, while the road division experienced a decline in revenues. Recent mergers and acquisitions, such as the consolidation of Canadian customs broker Farrow and the upcoming takeover of City Zone Express, are expected to boost numbers in the future.
Overall, Kuehne + Nagel remains optimistic about future growth opportunities, especially with the strategic acquisition of City Zone Express to strengthen their services for South-east Asia customers. Despite the decline in contract logistics revenues, the company remains focused on mitigating negative currency effects and improving performance across all divisions.
