Kuehne + Nagel saw its gross profit for 2018 increase by 9.8% to CHF7.7 billion (US$7.7 billion), according to annual results released by the company.

The group generated a net turnover of CHF20.7 billion (US$20.8 billion) for the year, a year-on-year increase of 11.7%, while EBIT grew by 5.3% to CHF987 million (US$990 million).

“2018 was another successful year for Kuehne + Nagel,” said Detlef Trefzger, CEO of Kuehne + Nagel International AG. “Despite the market weakening at the end of the year, we succeeded in increasing our net turnover, gross profit and EBIT once again. The consistent implementation of our business strategy was decisive for this success. By introducing additional digital platforms, with new highly specialized solutions and targeted acquisitions, we reached important milestones last year and will continue to pursue our journey. Even though the growth momentum of the global economy slowed down at the end of 2018, we confirm our goals for the year ahead. In 2019, we aim at growing twice as fast as the market and improving our results further, complemented with selected acquisitions to our portfolio.”

Kuehne + Nagel’s sea freight volume increased by 7.7% to 4.7 million TEUs, with strong growth in the Asia-Europe, Asia-US and intra-Asia trade lanes. The company said that significant new business was won with KN ESP, a new digital supplier management system for key accounts introduced in early 2018. Kuehne + Nagel also launched a new digital platform called Sea Explorer to provide customers with detailed comparisons for carrier services.

For air freight, Kuehne + Nagel grew its tonnage by 11.0% to 1.7 million tonnes, helped by industry-specific solutions for the pharma, healthcare and aviation industries. The company acquired Quick International Courier, a specialist in time-critical transport and logistics solutions.

In contract logistics, Kuehne + Nagel recorded growth rates of more than 40% in e-commerce fulfilment. The company made two acquisitions in automotive logistics in China and expanded its e-commerce offering in Indonesia. Kuehne + Nagel managed a total of 11.6 million square metres of warehouse and logistics space for its customers.

“The Kuehne + Nagel Group’s annual result demonstrates once again the company’s performance,” said Jörg Wolle, chairman of the board of directors at Kuehne + Nagel International AG. “In 2018, we expanded our position as a globally leading logistics provider and further improved our result. This confirms the strategic focus of the Kuehne + Nagel Group. In this context, the board of directors is looking with confidence to the 2019 financial year and ahead. In the medium and long term, the fundamental, all-encompassing transformation processes taking place in all areas of the global economy will continue to represent significant opportunities for Kuehne + Nagel going forward.”