DSV: Good half-year results as freight markets continue to normalise

Today's highlights

• DSV reports good H1 results and strong cash flow, adapting to soft market conditions by leveraging its asset-light business model. Gross profit was down 14.2% and EBIT before special items 31.6% from last year's extraordinary results but compare favourably to pre-pandemic levels. 
• The Air & Sea division saw a 35.7% decrease in EBIT before special items for H1 2023, impacted by lower freight volumes and rates compared to the same period last year. 
• The Solutions division experienced reduced activity in H1 2023, reporting a 23.4% decline in EBIT before special items compared to an exceptionally strong H1 2022. The decline was largely due to a slight drop in activity and expansion of warehouse capacity. 
• The Road division reported a 2.8% decrease in EBIT before special items. In a market with lower activity across most sectors, the division performed well and gained market share. 
• During the first half of 2023, the demand for transport and logistics services has been marked by the macroeconomic situation. In parallel, the logistics markets have quickly normalised after the disruptions in recent years. In a highly competitive market, DSV is reinforcing its commercial efforts and maintaining its ambition of outgrowing the general market while delivering value to customers. 
• Based on DSV's good performance in H1 2023 and the assumption of a gradual improvement in transport volumes in H2 2023, DSV upgrades the full-year outlook for 2023 as follows: 
  • EBIT before special items is expected to be in the range of DKK 17,000-18,500 million (previously DKK 16,000-18,000 million). 

In Q2 2023, we delivered a solid set of results across all three divisions and a strong cash flow. The demand for transport and logistics services is soft, and during the first half of 2023 we have demonstrated our ability to adapt to changing market conditions. The market development outlook is still uncertain, but we see signs of stabilisation and we anticipate gradual improvement in global trade volumes over the next quarters,

says Jens Bjørn Andersen, Group CEO.

Outlook for 2023

As announced today in Company Announcement no. 1045, we upgrade the full-year outlook for 2023 as follows:

• EBIT before special items is expected to be in the range of DKK 17,000-18,500 million (previously DKK 16,000-18,000 million).

The upgrade is based on DSV's performance in H1 2023 and the assumption of a gradual improvement in global trade volumes in H2 2023. As the global logistics market continues to normalise, we expect a further decline in gross profit yields for air and sea compared to the H1 2023 levels.

Read the full H1 company announcement