status report

Income Statement

Turnover

In 2017, Kuehne + Nagel’s turnover amounted to CHF 22,220 million representing an increase of 11.2 per cent or CHF 2,235 million compared to the previous year. Organic business growth resulted in an increase in turnover of CHF 2,087 million (10.4 per cent) and acquisitions contributed CHF 72 million (0.4 per cent). The turnover increase was driven by the significant volume growth in all business units and regions. 

 

Volumes in Seafreight increased by 7.5 per cent (+ 302,000 TEUs) and turnover per TEU increased by 2.7 per cent to CHF 2,022 per TEU (2016: CHF 1,969). In Airfreight, the volume increase was 20.4 per cent (+ 266,000 Tons), and the freight rate increase was at 0.4 per cent per 100 kg to CHF 303 (2016: CHF 302). These were the main contributors to the turnover growth, followed by volume increases in Overland and Contract Logistics.

 

At a regional level, Europe, Middle East, Central Asia and Africa “EMEA” (11.2 per cent), the Americas (12.8 per cent) and Asia-Pacific (7.8 per cent) reported an increased turnover in 2017.

 

Exchange rate fluctuations between 2016 and 2017, based on average yearly exchange rates, led to an increased valuation of the Euro of 2.1 per cent, a decreased valuation of the US Dollar as well as dependent currencies and the British Pound by 0.6 and 5.4 per cent respectively, against the Swiss Franc, resulting in a positive impact of CHF 76 million (0.4 per cent) of turnover.

 

Net turnover

In 2017, Kuehne + Nagel’s net turnover amounted to CHF 18,594 million representing an increase of 12.5 per cent or CHF 2,069 million compared to the previous year. Organic business growth resulted in an increase in net turnover of CHF 1,982 million (12.0 per cent) and acquisitions contributed CHF 72 million (0.4 per cent). The exchange rate fluctuation had a positive impact of CHF 15 million (0.1 per cent).

 

At a regional level, EMEA (11.8 per cent), the Americas (14.2 per cent) and Asia-Pacific (12.9 per cent) reported an increased net turnover in 2017.

 

Gross profit

Gross profit reached CHF 7,023 million in 2017, which represents an increase of 7.2 per cent or CHF 473 million compared to the previous year. Organic business growth resulted in an increase in gross profit of CHF 453 million (6.9 per cent), mainly in the business unit Contract Logistics (+ CHF 340 million), and exchange rate fluctuation had a negative impact of CHF 9 million (0.1 per cent). Acquisitions contributed CHF 29 million (0.4 per cent). The positive effect from volume growth in Sea and Airfreight was partially offset by lower yields in a competitive market environment with increasing supplier rates.

 

At a regional level, EMEA (6.8 per cent), the Americas (9.1 per cent) and Asia-Pacific (6.8 per cent) reported an increased gross profit in 2017.

Regional turnover

Regional gross profit


Operational cash flow

The operational cash flow, the sum of the net income for the year plus/minus non-cash-related transactions, increased by CHF 86 million to CHF 1,148 million in 2017 (for further information, please refer to the cash flow statement in the Consolidated Financial Statements 2017).

 

Operational expenses

Operational cash flow


EBITDA

In 2017, earnings before interest, tax, depreciation, amortisation and impairment of property, plant and equipment, goodwill and other intangible assets, increased by CHF 40 million or 3.6 per cent compared to the previous year; EBITDA of organic business increased by CHF 42 million, acquisitions contributed CHF 2 million, and negative exchange rate development accounted for EBITDA of CHF –4 million.

 

EMEA generated the largest EBITDA contribution with CHF 675 million (58.7 per cent), followed by the Americas with CHF 246 million (21.4 per cent), and Asia-Pacific with CHF 229 million (19.9 per cent).

 

EBIT ⁄ Earnings for the year

In 2017, earnings before interest and tax (EBIT) increased by CHF 19 million to CHF 937 million (2016: CHF 918 million). The increase was mainly due to higher contribution from the organic business by CHF 29 million, whereas the business from acquisitions had a negative impact of CHF 6 million, mainly due to the amortization of other intangibles of CHF 8 million; the exchange rate development had a negative impact of CHF 4 million. The EBIT margin to net turnover for the Group has decreased to 5.0 per cent compared to 5.6 per cent in 2016. EBIT in per cent of gross profit (conversion rate), an important KPI for the Group, decreased from 14.0 per cent in 2016 to 13.3 per cent in 2017.

 

In 2017, the region EMEA contributed CHF 523 million (55.8 per cent) to the Group’s EBIT, followed by Asia-Pacific with CHF 210 million (22.4 per cent), and the Americas with CHF 204 million (21.8 per cent).

 

Earnings for the year 2017 increased by CHF 20 million to CHF 740 million compared to the previous year’s CHF 720 million, whereby the margin decreased to 4.0 per cent (in per cent of net turnover) compared to the previous year’s 4.4 per cent.

EBITDA

EBIT


Earnings for the year were positively impacted by the tax reform in the USA and the Group expects a positive impact on the effective tax rate based on the above for 2018.

Earnings for the year