DSV: Strong first quarter results across all divisions – full year outlook raised
Q1 2022 results
The Group achieved a gross profit of DKK 12,877 million for the first three months of 2022, compared to DKK 7,785 million for the same period last year. The strong increase was driven by the addition of the GIL business and growth across all divisions – in particular the Air & Sea and Solutions divisions.
EBIT before special items for the first three months of 2022 amounted to DKK 6,496 million, compared to DKK 3,067 million for the same period last year.
For the rolling 12-month period ending March 31, 2022, the Group achieved an 80% increase in adjusted diluted earnings per share.
Jens Bjørn Andersen, Group CEO:
“For the first quarter of 2022, we are reporting a solid results package, with profit growth across all divisions and strong cash flow. We are following GIL’s integration plans and are on track to complete in the third quarter of 2022. Markets continue to be affected by tight capacity and congestion, and in March we saw the return of COVID-19 related lockdowns in China – a reminder for all of us that the pandemic is not still not finished.
The difficult situation in Ukraine is on everyone’s mind. DSV shipments to and from Russia and Belarus have ceased, with the exception of some humanitarian shipments, and we are in the process of relinquishing and ending our business in Russia. The direct financial impact is not significant because the combined turnover in Ukraine, Russia and Belarus represents less than 1% of the Group’s turnover. Still, the situation has negatively impacted markets in several ways, particularly for air and road transport, and we continue to do our best to find alternative capacities and solutions for our customers. »
Outlook for 2022
Uncertainty in the global economy has increased in recent months; however, DSV expects continued disruptions to global supply chains to support strong demand for DSV services. Based on the strong performance in the first quarter of 2022 and expectations for the rest of the year, DSV is revising its outlook for the full year 2022 as follows:
EBIT before special items is expected to be between DKK 21,000 and 23,000 million (previously DKK 18,000 and 20,000 million).
Ukraine and Russia
As part of the global network, DSV has subsidiaries in Ukraine, Russia and Belarus. The combined revenue in the three countries represents less than 1% of the Group’s revenue and therefore no material direct impact on the Group’s financial results or financial position is expected.
Activities in Ukraine were temporarily suspended when the crisis broke out. A small part of the operation is operational again to support humanitarian shipments and other activities.
The situation has caused DSV’s shipments to and from Russia to stop, with the exception of medical and humanitarian supplies. DSV is in the process of divesting its activities in Russia.
The situation in Ukraine and the sanctions imposed in response by the EU, US, UK and others against Russia have impacted transport markets in several areas. The closure of Russian airspace has reduced available air cargo capacity between Asia and Europe due to longer flight times and sanctions against Russian airlines. In Europe, the decision of many Ukrainian truckers to return to their home country has further tightened road transport capacities. In both cases, DSV was able to find capacity and alternative solutions for customers.
Integration of Agility’s Global Integrated Logistics business
The acquisition of Agility’s Global Integrated Logistics (GIL) business was completed in August 2021. The integration of GIL is progressing as planned with final completion expected in the third quarter of 2022. Consistent with previous announcements, GIL is expected to contribute at least DKK 3,000 million to the combined EBIT before exceptionals on an annual basis. Around 85% of the contribution to EBIT is expected to impact the income statement in 2022, and DSV expects a full-year impact in 2023.
Redemption of shares
A separate company announcement regarding the launch of a new share buyback program of up to DKK 6,000 million will be published on April 27, 2022. The program will be concluded no later than July 25, 2022.
Full Company Announcement
Read the company’s full first quarter announcement here.
Flemming Ole Nielsen, tel. +45 43 20 33 92, [email protected]
Sébastien Rosborg, tel. +45 43 20 33 87, [email protected]
Maiken Riise Andersen, tel. +45 43 20 30 74, [email protected]