-
DSV EBIT dropped 12.4% in the second quarter year-on-year despite a 9.6% revenue increase
-
Company-wide gross profit fell 4% and 6.3% in the second quarter and the first half
-
The Air and Sea division saw a 9.3% decrease in gross profit and a 18.2% decrease in EBIT for the second quarter
-
Higher demand for airfreight out of Asia Pacific lifted air cargo volumes in the second quarter
Danish transport and logistics company DSV’s earnings before income tax (EBIT) dropped 12.4% to 4.099 billion Danish krone in the second quarter year-on-year. This is despite a 9.6% revenue increase to 41.157 billion DKK in the same period.
Company-wide gross profit fell 4% and 6.3% in the second quarter and the first half, respectively, compared to their respective periods last year. EBIT declined 16.6% year-on-year on a first half-basis.
For the second half, revenue increased by 2% year-on-year.
In its interim financial report on July 24, the world’s third-largest freight forwarder said it anticipates a positive impact from disruptions in the Red Sea on the second half of the year.
“In a challenging environment, we delivered a strong financial performance in Q2 2024 driven by positive volume growth and stabilisation of gross profit per unit in the Air & Sea division. We continue to gain market share across all three divisions driven by our strengthened commercial platform. Furthermore, we have increased our productivity in all three divisions,” said DSV group CEO Jens Lund.
DSV Air & Sea division was positively impacted by higher volume partly offset by lower average freight rates compared to the same period last year, leading to a slight decrease in revenue for the first half mainly driven by declines in its ocean and air freight forwarding business.
“In a market characterised by freight rate volatility and increasing volumes, the division saw a 9.3% decrease in gross profit and a 18.2% decrease in EBIT before special items for (the quarter) compared to the same period last year,” the company said.
“Compared to (that of) last year, the gross profit yields have normalised and remained relatively stable throughout the (first half of 2024). There has been no significant financial impact from the situation in the Red Sea, and we estimate that the division has gained market share,” it added.
Higher demand for airfreight out of Asia Pacific lifted DSV air cargo volumes in the second quarter. The company’s air freight volumes (in tonnes) grew by 10% in the quarter and by 6% in the first half compared to the same period last year.
The demand was mainly driven by improved exports from the region, which was positively impacted by growing textile and pharma export goods from China and sea-to-air conversion in the Indian sub-continent, DSV said.
