DSV reports strong 2022 results

DSV reports 33% increase in gross profit, 48% increase in EBIT before special items

DSV reports strong 2022 results
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DSV reported a 33 percent increase in gross profit for 2022 on good performance across all business areas.

"While EBIT before special items grew by 48 percent, adjusted free cash flow more than doubled compared to 2021," says the annual report.

Air & Sea divisions reported a 53 percent increase in EBIT before special items, Solutions achieved a 47 percent EBIT increase, and Road achieved a 9 percent EBIT increase for 2022. Towards the end of 2022, the performance of DSV's three divisions was impacted by the general macroeconomic slowdown and the gradual normalisation of freight markets.

"DSV successfully completed the integration of Agility GIL within a year of the acquisition, making the company a top three player in the industry. M&A remains an important part of DSV's strategy, and the company continues to monitor the market in search of value creation opportunities."

Jens Bjørn Andersen, Group CEO, DSV

Group CEO Jens Bjørn Andersen says: "2022 was an eventful year, and I know that our teams across the organisation have worked hard to support our customers as they navigated extremely volatile freight markets and geopolitical unrest. We also enhanced our climate ambitions and have committed to a net-zero target for CO2 emissions by 2050. Towards the end of the year, our performance was impacted by the general macroeconomic slowdown and a gradual normalisation of the freight markets. We expect this trend will continue into 2023 and this is reflected in our financial guidance."

The acquisition of GIL was closed in August 2021 "at which date we included GIL in our consolidated financial statements," says Michael Ebbe, CFO, DSV. "Consequently, the business combination was only partly included in the comparable P&L figures for 2021. We finalised the integration during Q32022, and in line with previous announcements, we estimate that GIL will contribute at least DKK 3 billion ($450 million) annually to combined EBIT before special items. The integration triggered costs of DKK 1.1 billion ($165 million) in 2022, which are recognised in the income statement under special items.”

Michael Ebbe, CFO, DSV

2023 outlook
The 2023 outlook assumes a global economic growth in the level of 2-3 percent with lowest growth rates in the advanced economies. "Normally, DSV would expect transport volumes to grow in line with the economy but in the second half of 2022, volumes declined more than GDP due to reduction of inventory levels and normalisation of consumer behaviour after Covid-19."

DSV expects negative development in freight volumes to continue in the first part of 2023 but with a recovery in the second half of the year.

EBIT before special items is expected to be in the range of DKK 16-18 billion ($2.4-2.7 billion).

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