DSV executes on growth strategy and reports record-high results for 2021
DSV reports 59% growth in revenue and 71% growth in operating profit for 2021. All three business areas – Air & Sea, Road and Solutions – contributed to the growth.
- DSV reports 59% growth in revenue and 71% growth in operating profit for 2021. All three business areas – Air & Sea, Road and Solutions – contributed to the growth.
- During 2021, global supply chain disruptions, port congestion, delays and record-high freight rates have become some of the most debated topics both for businesses and in society at large. Throughout the year, DSV’s teams worked hard to find transport solutions and move the cargo for its customers.
- DSV continues to pursue its successful growth strategy. In August 2021, Agility’s Global Integrated Logistics (GIL) was acquired, adding scale to the global network and strengthening DSV’s presence in the Middle East and South-East Asia.
- For 2022, DSV expects EBIT before special items in the range of DKK 18.0 bn – DKK 20.0 bn. The current market conditions with tight capacity and congestion are expected to continue well into 2022.
Continued focus on growth, business development and sustainability
The integration of GIL is progressing according to plan and, so far, 40 of all 60 GIL countries have been onboarded to DSV’s network. The integration process is expected to be completed in Q3 2022.
DSV made progress on several other strategic initiatives in 2021. The development of physical infrastructure has been continued with new, modern logistics centres in Europe, South Africa and North America. At the same time the digital infrastructure and production systems have been further improved to support seamless integration and high service levels towards customers.
DSV’s Green Logistics services were launched in 2021. The purpose of Green Logistics is to support customers’ CO2 reductions by providing sustainable fuel options and helping them optimise their supply chains.
Q4 2021 results
For Q4 2021, revenue amounted to DKK 61,302 million (Q4 2020: DKK 31,716 million). The growth of 89.8% (in constant currencies) was driven by increased activity, higher freight rates and the impact from the GIL acquisition. Q4 2021 was the first full quarter with GIL after the closing of the transaction in August 2021.
For Q4 2021, gross profit came to DKK 11,674 million (Q4 2020: DKK 7,212 million). The growth in gross profit was 58.4% (in constant currencies) for the Group and was driven by higher activity across all divisions. In Air & Sea, the extraordinary freight markets with tight capacity and high rates had a positive impact on the gross profit.
EBIT before special items was DKK 5,113 million for Q4 2021 (Q4 2020: DKK 2,616 million), a growth of 90.2% (in constant currencies). All three divisions contributed to the growth, driven by organic growth in gross profit, improved conversion ratio and a positive contribution from GIL. EBIT before special items for the full-year 2021 was DKK 16,223 million. This was slightly above the guidance range of DKK 15,250-16,000 million.
Outlook for 2022
- EBIT before special items is expected to be in the range of DKK 18,000-20,000 million.
- The effective tax rate of the Group is expected to be approximately 23%.
The 2022 outlook assumes a global economic growth around 4% and similar growth levels in the transport markets. DSV expects that the current situation with congestion, tight capacity and high rate levels will continue well into 2022. A gradual reduction of the congestion could start in the second half of the year.
Due to the volatile and unpredictable transport markets, the assumptions that our outlook for 2022 rely on are more uncertain than they would normally be.
Furthermore, DSV assumes that the integration of GIL will continue as planned and expects special items in the level of DKK 1,000 million related to the integration in 2022.