DSV Q2 revenue up 65% on strong all-round show
Based on strong performance in H12022, DSV has upgraded full-year EBIT outlook to DKK 23-25 billion ($3.2-3.5 billion).
DSV reported a 65 percent increase in group revenue at DKK 62.7 billion ($8.8 billion) for Q22022 and 73 percent gain at DKK 123.8 billion ($17.3 billion) for H12022 with growth and high productivity in all divisions and across all regions, according to an announcement today.
Operating profit more than doubled to DKK 7.4 billion ($1.04 billion) for Q2 and DKK 13.9 billion ($1.95 billion) for H12022, the statement added.
"In Q2 2022, we continued to deliver strong results across all business areas," says Jens Bjørn Andersen, Group CEO, DSV. "For the first six months of the year, EBIT before special items doubled and free cash flow more than tripled compared to the same period last year. We have now completed most of the GIL integration, and we can look back on a swift and successful integration, thanks to a solid effort across our organisation.
"The uncertainty in the global economy has intensified and the demand for freight services has softened in recent months. Still, large parts of global supply chains are challenged by congestion, and our focus remains on assisting and finding the right solutions for our customers."
Strong numbers from air/sea division
DSV reported a 76 percent increase in air freight revenue to DKK 25 billion ($3.5 billion) for the second quarter ended June 30, 2022 compared to DKK 14.2 billion ($1.9 billion) in Q22021 on 15 percent increase in volume to 402,594 tonnes.
For the first six months of the current financial year, air revenue increased 81 percent to DKK 49.2 billion ($6.9 billion) on 18 percent increase in cargo carried to 813,505 tonnes.
The sea freight revenue increased 89 percent to DKK 22.2 billion ($3.1 billion) on 20 percent increase in freight carried to 690,621 TEUs. For the first half of the year, revenue doubled to DKK 43.9 billion ($6.2 billion) on 18 percent increase in freight carried to 1.35 million TEUs.
The air & sea division reported more than doubling of earnings to DKK 6 billion ($840 million), driven by the inclusion of Agility's Global Integrated Logistics (GIL) business and strong gross profit yields.
Based on the strong performance in H12022, and expectations for the remainder of the year, DSV has upgraded the full-year EBIT outlook to be in the range of DKK 23-25 billion (previously DKK 21-23 billion). "We expect that the demand for air and sea freight transport will remain soft for the rest of the year due to lower consumer demand. Furthermore, we expect that a gradual easing of supply chain constraints during H2 2022 will lead to a decline in gross profit yields for air and sea."
The company is also buying back shares totalling DKK 7 billion (nearly $1 billion), which is likely to be completed by October 24, 2022.