Half Year 2025 Kuehne und Nagel International AG Earnings Call Transcript
Key Points
- Kuehne + Nagel International AG (KHNGF) gained market share in both sea and air logistics, with sea logistics volume growing by 4% and air logistics volume by 9% year-over-year.
- The company successfully launched two bonds of CHF200 million each on very competitive terms.
- Free cash conversion improved over the first half of the year, with a cash conversion rate of 47% in Q2, up from 37% in the same period last year.
- Contract logistics achieved a record EBIT of CHF42 million in Q2, marking the strongest Q2 EBIT result ever for this segment.
- The acquisition of IMC has strengthened the company's sea logistics value proposition and reduced the proportion of gross profit correlated with sea freight rates.
- Currency headwinds, particularly the devaluation of the US dollar and the EUR against the CHF, resulted in a 6% EBIT headwind in Q2.
- EPS saw a modest contraction, especially in Q2, primarily due to currency effects.
- Road logistics EBIT decreased by 17% year-over-year, with cost pressures contributing to a lower conversion rate.
- The sea logistics conversion rate declined to 31% in Q2 from 36% in Q1, partly due to the consolidation of IMC.
- The company expects a muted peak season for sea freight, particularly for the US market, which may impact future profitability.
(Operator Instructions)
Ladies and gentlemen, welcome to the Kuehne und Nagel Half Year 2025 results conference call and live webcast. I am Sandra, the course call operator.
I would like to remind you that all participants have been listening on mode and the conference is being recorded.
(Operator Instructions)
The conference must not be recorded for publication or broadcast at this time. It's my pleasure to hand over to Stefan Paul, CEO of Kuehne und Nagel. Please go ahead, sir.
Thank you, Sandra, and good afternoon. Welcome to the presentation of Kuehne und Nagel's half year 2025 financial results. I'm CEO, Stefan Paull. And once again, I'm joined today by our CFO Markus Blanka-Graff.
Let's go into page number two, half year 2025 results gaining market share in sea and air logistics. In the second quarter of 2025, we accelerated our progress toward our strategic goal of profitable market share expansion.
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