DSV

2022 - 7 - 26

Post cover — Image courtesy of "STAT Times"

DSV reports 76% air revenue increase in second quarter (STAT Times)

Based on strong performance in H12022, DSV has upgraded full-year EBIT outlook to DKK 23-25 billion ($3.2-3.5 billion).

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." 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." "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. 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. Group revenue increased to DKK 62.7 billion ($8.8 billion) for Q22022 and DKK 123.8 billion ($17.3 billion) for H12022. 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 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.

DSV second quarter income resilient against weakened demand ... (Air Cargo News)

DSV has reported positive air results for the second quarter of 2022, aided by ongoing oceanfreight disruption and its acquisition of Agility's Global.

Integration of GIL will bolster earnings into 2023, said the company. Revenue was DKr62.7bn in the second quarter, up 65.8%. The company said it expects that “demand for air and sea freight transport will remain soft for the rest of the year” and “uncertainty” about how the global economy and congestion in the logistics market will develop remains. Overall company ebit before special items was DKr7.5bn for the second quarter of 2022, an increase of 108.7% against last year. DSV said: “The significant increase in EBIT before special items was driven by the inclusion of GIL and general growth in gross profit and was further supported by the continued focus on productivity, optimisation and cost management.” In the second quarter of 2022, the forwarder’s Air & Sea division reported a 102.7% year-on-year increase in earnings before interest and tax (ebit) before special items to DKr6.2bn.

DSV raises outlook as freight rates rise on global supply snarls (KELO AM-FM)

COPENHAGEN (Reuters) -DSV, the world's third-largest freight forwarder, raised its annual earnings outlook on Tuesday and posted forecast-beating seco...

DSV now expects earnings before interest and tax (EBIT) before special items for 2022 to be in the range of 23 billion crowns to 25 billion crowns ($3.16 billion to $3.43 billion), up from an earlier estimate of 21 billion to 23 billion crowns. The company reported earnings before interest and tax (EBIT) before special items of 7.5 billion crowns for the second quarter, beating an average of 6.5 billion crowns forecast by analysts in a company poll. “The uncertainty in the global economy has intensified and the demand for freight services has softened in recent months,” Chief Executive Officer Jens Bjorn Andersen said in a statement.

DSV raises outlook as global supply snarls keep freight rates high (Reuters)

Freight forwarder DSV raised its annual earnings outlook on Tuesday after benefiting from high freight rates, but said consumer demand and freight rates ...

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DSV raises guidance but warns of falling yields (Lloyd's List)

Earnings in the first half of the year have boosted the full-year outlook. But the second half may not see the same growth as normally expected.

DSV A/S reports Q2 results (Seeking Alpha)

DSV A/S press release (DSDVF): Q2 Adjusted earnings of DKK5.33B.Revenue of DKK62.75B (+65.9% Y/Y).FY2022 Outlook: EBIT before special items is expected to ...

- FY2022 Outlook: EBIT before special items is expected to be in the range of DKK 23,000M - DKK25,000M (previously DKK21,000M - DKK23,000M). DSV A/S reports Q2 results - Revenue of DKK62.75B (+65.9% Y/Y).

DSV Q2 revenue up 65% on strong all-round show (Logistics Update Africa)

Based on strong performance in H12022, DSV has upgraded full-year EBIT outlook to DKK 23-25 billion ($3.2-3.5 billion).

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." 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." "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. 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. 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. 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.

Falling rates to test shippers' long-term contract resolve: DSV | JOC ... (JOC.com)

Multi-year contracts signed by shippers at the height of the ocean freight bull run may be less attractive as the market begins to soften, according to ...

DSV A/S (DSDVF) CEO Jens Bjorn Andersen on Q2 2022 Results ... (Seeking Alpha)

DSV A/S (OTCPK:DSDVF) Q2 2022 Earnings Conference Call July 26, 2022 05:00 ET CompanyParticipants Jens Bjorn Andersen - Chief Executive Officer Jens Lund ...

And then it's also clear that the longer we see out in the future, the less is the visibility. And I guess, Michael can talk to the cash flow but I hope he will say now that he is confident that the cash will follow the performance of the company. I think the problems we have with our customers on Solutions is that we find it hard for the -- to find excess space for them. On the contrary, I think we've sometimes -- and that might be also that we like to hear that but they actually accept a lower service level because they can only use then, what can I say, one shipping line or perhaps sometimes they don't run CFSs and stuff like that, that have the same volume or structure as ours or some of the forwarders they have. We have a lot of temporary staff on blue collar and we can also adjust on the white collar side. So what we have put into the -- a little bit the spreadsheet then is that volumes will develop more or less like what we have seen here in Q2. And then the big deciding factor is, of course, the yields. I think it will be irresponsible at this moment in time with all the anticipation of what could happen in the second half of this year to go with a normal split of earnings between the first half and the second half of the year, where normally the second half is slightly better than the first. Well, you normally can see at least -- we do see a pickup in volumes in the course of Q3 and maybe later on for Air. Are we currently looking at what is a normal pattern for volumes during the second half? We are happy to be able to say that we have actually gained market share in Q2. We have seen an organic development of minus 4% for DSV but we do estimate that the market is worse than that, being in reverse, so to say, with between 7% and 10%. So we have actually been able to grow faster than the market and a little bit earlier than we had actually estimated and what we had indicated also to shareholders in the past. And I think we will go below the DKK10,000 per tonne on the air freight and we will probably also trend towards the DKK5,000 on -- per TEU. So it will trend a little bit downwards from where we had. What pleases us also is the fact that we have continued to see a very good development in the yields going from DKK11,400 now to DKK12,500 in the quarter. You are rock stars, you've done absolutely fantastic and we are all proud of the achievements that you have done in the quarter.

DSV: Strong half-year results in all divisions (American Journal of Transportation)

DSV reports strong half-year results with growth and high productivity in all divisions and across all regions. Supported by the integration of GIL, ...

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." 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 expect that the demand for air and sea freight transport will remain soft for the rest of the year.

DSV

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