Kuehne + Nagel Acquires City Zone Express to Strengthen Asia Pacific Logistics
Kuehne + Nagel has made a strategic move by acquiring cross-border logistics provider City Zone Express to further enhance its offerings in the Asia Pacific region, particularly in response to the growing e-commerce and high-tech industries.
Expansion in Asia
The financial details of the acquisition were not disclosed, but Kuehne + Nagel expects immediate positive impacts on earnings. The addition of City Zone Express will strategically boost Kuehne + Nagel’s cross-border road logistics services in Asia. City Zone Express, based in Malaysia and operating in Malaysia, Singapore, Vietnam, Thailand, and China, is a subsidiary of Singapore-listed Chasen Holdings.
Financial Update
Kuehne + Nagel also shared its financial performance, reporting a net profit of 283 million Swiss francs ($320 million) in the final quarter of 2023. However, this was a decrease from CHF494 million in the same period the previous year due to a 35% drop in turnover to CHF5.69 billion. For the full year, net profit reached CHF1.46 billion with turnover of CHF23.85 billion, meeting company expectations.
CEO’s Outlook
Chief Executive Stefan Paul reflected on the year, stating, “Kuehne + Nagel closed the financial year 2023 with an overall good performance in a persistently challenging environment.” The company adjusted its cost base to align with market conditions by implementing restructuring measures in the fourth quarter. Despite the economic challenges, Kuehne + Nagel remains committed to delivering value to its stakeholders.
Dividend Declaration
In light of the financial results, Kuehne + Nagel announced a dividend of CHF10 for 2023, a decrease from the CHF14 payout in 2022.