Interim Financial Report for H1 2020 Released | DSV
Despite the COVID-19 crisis, important drivers such as strong cost management and the continued integration of Panalpina allowed recent months to develop better than anticipated.
Jens Bjørn Andersen, Group CEO: “Recent months have developed better than we anticipated when the COVID-19 crisis started, and we are pleased to report 63% growth in EBIT before special items for Q2 2020 and 37% growth for the first half of the year. Strong cost management and the continued successful integration of Panalpina have been important drivers for our results. COVID-19 has created an extraordinary market situation in air freight, and here we have been able to help our customers and have benefitted from the legacy Panalpina freighter network. The uncertainty remains higher than normal, but based on a strong first half of 2020 we are now able to reinstate guidance for the full year. We now expect EBIT before special items on level with the guidance we gave to the market before this crisis started.”
Outlook for 2020
Based on the financial performance in the first half of 2020, guidance for full-year 2020 is reinstated as follows:
- Operating profit before special items is expected to be in the range of DKK 8,200-8,700 million
- Special items, costs for 2020 are expected in the level of DKK 2,300 million (previously DKK 2,500 million)
- The effective tax rate is expected in the level of 25%
The guidance is based on assumptions of a gradual improvement of the global freight markets over the third and fourth quarters as markets reopen and with no material disruptions of global supply chains. We expect that transport volumes will remain below last year, but the negative run rate will lessen. Furthermore, we expect that the integration of Panalpina and implementation of cost saving initiatives will continue as planned.
Due to the COVID-19 situation, it must be stressed that the basic assumptions behind the guidance are more uncertain than normal.
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