DSV Q3 revenue down 38% on lower volumes, rates
Air freight volumes continue to be impacted by lower demand and a shift from air to sea
DSV reported a 38 percent decline in revenue at DKK 35.6 billion ($5 billion) for the third quarter ended September 30, 2023 on lower rates and declining air and sea volumes.
Profit for the period declined to DKK 2.8 billion ($392 million), says an official release.
Air freight volumes continue to be impacted by lower demand and a shift from air to sea, the update added. "Gross profit yields are declining, as expected, but are still at high absolute levels."
Volume decline gradually eased in Q32023 for sea freight but "this was mainly due to easier comparisons from last year. No real peak season in Q323, and yields were declining but are still at a strong absolute level. Our focus remains on securing profitable growth."
For the first nine months of 2023, DSV reported revenue of DKK 114.3 billion ($16 billion) and profit of DKK 9.5 billion ($1.3 billion).
A real recovery in global freight volumes does not seem to materialise in 2023 "but based on its performance so far, DSV has raised the lower end of its 2023 EBIT guidance, which is now expected to be in the range of DKK 17.5-18.5 billion (previously DKK 17-18.5 billion)."
Jens Bjørn Andersen, Group CEO, DSV says: "In markets characterised by soft freight volumes and declining rates, we delivered solid results during the first nine months of 2023. The results reflect our flexible business model and, not least, our dedicated employees who continue to deliver good customer service and efficiently manage our capacity. A real recovery in global freight volumes does not seem to materialise in 2023 but based on the performance so far, we raise the lower end of our 2023 EBIT guidance. Finally, I will add a comment to the recently announced changes to the Executive Board, which will have effect in September 2024. This will not impact our operations or the execution of our strategy - it will be business as usual, and the senior management team is committed to securing a good handover process."
DSV announced recently that Andersen will step down and Group COO Jens H. Lund will take over as new Group CEO with effect from September 30, 2024.
DSV launched a new share buyback programme of up to DKK 2.5 billion ($350 million) to be concluded no later than January 31, 2024.
DSV's global operations (80+countries) cover three divisions - air & sea, road and solutions - with 75,000 employees across 1,600 offices and logistics facilities.