Kuehne + Nagel (KNIN) Q4 2024 earnings summary

Executive summary

• Delivered solid financial results for 2024, with volumes improving in the second half and a return to year-on-year EBIT growth in Q4.

• Net turnover increased 4% year-over-year to CHF 24.8 billion, while gross profit declined 1% to CHF 8.7 billion.

• EBIT fell 13% to CHF 1,654 million and EPS dropped 17% to CHF 9.97 compared to 2023.

• Achieved high-end free cash conversion by year-end and fulfilled several strategic ambitions, including expanding customs offerings and migrating the operating system to the cloud.

• Streamlined organizational structure and pruned the Sea Logistics portfolio, positioning for continued improvement in 2025.

Financial highlights

• Q4 2024 EBIT nearly CHF 100 million higher than prior year; full-year results about 10% below 2023, excluding a currency headwind of over 2%.

• EBITDA for 2024 was CHF 2,478 million, down from CHF 2,678 million in 2023.

• Free cash flow conversion reached 94% in Q4; excluding seasonal Apex impact, would have been 124%.

• Dividend proposal of CHF 8.25 per share, maintaining a stable payout ratio and ordinary dividend versus 2023.

• Gross profit margin was 35.0%, slightly lower than 36.8% in 2023.

Outlook and guidance

• Expect improved free cash flow generation to continue, barring large freight rate spikes or demand surges.

• Confident in positive development for 2025, with evidence of market share gains in certain business areas.

• More transparency and regular financial guidance to be provided starting from Capital Markets Day in March 2025.

• Bolt-on acquisitions expected to expand service offering.