(Reuters) – Swiss logistics group Kuehne & Nagel International on Monday reported a 79% rise in its second-quarter net profit, citing growth in all business units despite volatile supply chains.
Net profit in the April-June period came in at 796 million Swiss francs ($827 million), up from 446 million a year ago, while operating profit (EBIT) landed 78% higher at 1.08 billion francs.
The group said it was able to reschedule cargo delivered via air traffic after the closure of Russian airspace and the lockdown in Shanghai.
“Even in this challenging environment, Kuehne+Nagel delivers what it promises … we expect demand for high quality services to remain solid in the second half of 2022,” Chairman Joerg Wolle said.
As a big freight forwarding player that operates in many geographies and combines air and sea freight, Kuehne & Nagel benefits from the increasing market turmoil amid supply chain snags, airspace closure following Russia’s invasion of Ukraine, and obstacles to sea shipments during China’s recurring COVID-19 lockdowns.
Bernstein analysts said in a note the company’s gross profit yields moved lower, which may suggest the beginning of an easing of the supply chain disruptions that have driven profits to record levels.
All of the group’s business units exceed prior-year results.
($1 = 0.9626 Swiss francs)
(Reporting by Bartosz Dabrowski in Gdansk, additional reporting by Tristan Chabba; editing by Milla Nissi)