DSV, 1123 - INTERIM FINANCIAL REPORT H1 2024
24 July 2024 - 3:30PM
UK Regulatory
DSV, 1123 - INTERIM FINANCIAL REPORT H1 2024
Company Announcement No.
1123
Strong Q2 2024 results with market share
gains in all divisions
- The DSV Group achieved strong Q2 2024 results in line with
expectations, with a decline in gross profit of 4.0% and a 12.4%
decline in EBIT before special items compared to the same period
last year. The financial results reflect a strong performance with
further market share gains in all three divisions despite a
competitive market.
- Sequentially, comparing Q2 2024 to Q1 2024, the DSV Group
achieved nominal growth throughout Q2 2024 in EBIT before special
items of 12.6% driven by increasing volumes and stabilisation of
earnings per unit in Air & Sea.
- Solid adjusted free cash flow for Q2 2024 was impacted by
higher net working capital due to increased activity and higher
freight rates throughout the quarter.
- Based on our strong performance in the first half year and
outlook for the second part of the year, we are narrowing the
full-year 2024 EBIT guidance to DKK 15,500-17,000 million.
Jens H. Lund, Group CEO: “In a challenging environment, we
delivered a strong financial performance in Q2 2024 driven by
positive volume growth and stabilisation of gross profit per unit
in the Air & Sea division. We continue to gain market share
across all three divisions driven by our strengthened commercial
platform. Furthermore, we have increased our productivity in all
three divisions.”
Selected key figures and ratios for the period 1 January –
30 June 2024
|
Q2 2024 |
Q2 2023 |
YTD 2024 |
YTD 2023 |
Key figures
(DKKm) |
|
|
|
|
Revenue |
41,157 |
37,727 |
79,497 |
78,681 |
Gross profit |
10,841 |
11,331 |
21,106 |
22,722 |
Operating profit (EBIT) before
special items |
4,099 |
4,705 |
7,740 |
9,377 |
Profit for the period |
2,712 |
3,375 |
5,105 |
6,662 |
Adjusted earnings for the
period |
2,790 |
3,448 |
5,253 |
6,788 |
Adjusted free cash flow |
1,229 |
3,239 |
1,672 |
8,137 |
|
|
|
|
|
Ratios |
|
|
|
|
Conversion ratio |
37.8% |
41.5% |
36.7% |
41.3% |
Diluted
adjusted earnings per share of DKK 1 for the last 12 months |
|
|
52.7 |
69.8 |
Performance in Q2 2024
In a challenging
environment, DSV demonstrated a strong financial performance
characterised by an uptake in volumes, market share gains across
all three divisions and solid cash flow generation. On the back of
this performance, we are narrowing our full-year guidance to DKK
15,500-17,000 million, and we launch a new share buyback programme
of DKK 1,500 million.
Air & Sea continued to see a stabilisation of gross profit
per unit during Q2 2024, indicating a steady operational
performance in a competitive and fluctuating market. While the
situation in the Red Sea has not yet materialised in our financial
results, it is expected to have a slightly positive impact in the
second half of 2024.
Road continued to deliver satisfactory results in a competitive
market with stable gross profit and a 4.4% increase in EBIT before
special items for Q2 2024 compared to the same period last year.
The division has further strengthened the network by establishing
control towers and expanding the European groupage network in close
collaboration with the other divisions of the Group.
Solutions saw a gross profit increase of 8.1% and an increase in
EBIT before special items of 6.8% for Q2 2024 compared to the same
period last year. Despite temporary low utilisation rates at new
sites, the Solutions division delivered a strong performance owing
to an increase in order lines driven by new wins.
We are well positioned for growth in an ever-changing market and
maintain our focus on having industry leading margins, which is a
testament to the company’s competitive culture and operational
efficiency. M&A remains a core pillar in DSV, and we believe
that the combination of organic and inorganic growth will create a
stronger DSV going forward.
We consistently assess our operations to optimise productivity
and remain flexible and competitive to meet market demand, and we
continuously invest in digital and physical infrastructure that
drives productivity up. In order to leverage on these investments,
we have launched a company-wide operational efficiency initiative
in Q2. The gains from these initiatives are expected to
materialise gradually over the coming quarters starting in Q3 and
with a full-year impact in 2025 in EBIT before special items of
approximately DKK 750 million.
Outlook for 2024
Based on our performance in the first six months of 2024 and our
expectations for the rest of the year, we are narrowing the
full-year outlook for 2024 as follows:
- EBIT before special
items is expected to be in the range of DKK 15,500-17,000 million
(previously DKK 15,000-17,000 million).
- The effective tax
rate is expected to be approximately 24%.
- One-off costs (special items) are expected to be in the level
of DKK 650 million in 2024.
Share buyback
A separate company
announcement about a new share buyback programme of DKK 1,500
million will be issued today. The programme starts 24 July 2024 and
will run until 22 October 2024.
Contacts
Investor Relations: Sebastian Rosborg, tel. +45 43 20 33
87, sebastian.rosborg@dsv.com
Media contact: Jonatan Rying Larsen, tel. +45 25 41 77
37, press@dsv.com
Yours sincerely,
DSV A/S
- 1123 - Announcement (24.07.2024) - INTERIM FINANCIAL REPORT H1
2024
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