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

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 favorably 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 normalized 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).