DSV issued its Q3 2024 figures last week. Revenue has climbed strongly but uncertainty about the macroeconomic environment has hit margins.
Jens H. Lund, DSV’s group ceo, said, “the third quarter of 2024 has been a landmark for our company with the agreement to acquire Schenker creating a world leader within transport and logistics and, following the announcement, we have successfully raised EUR5 billion (USD5.41 billion) in equity from a broad range of long-term investors.”
He added: “Our financial results in Q3 2024 show continued positive earnings growth. Our quarterly gross profit and EBIT before special items have increased on a year-over-year basis for the first time since Q3 2022, driven by positive volume growth across all divisions and higher gross profit.”
Q3 2024 revenues stood at DKK44,095 million (USD6.39 billion), up from DKK35,576 million (USD5.16 billion) in Q3 2023. However, despite strong revenue growth, profit for the period climbed marginally to DKK2,845 million (USD412 million), up from DKK2,808 million (USD407 million) in Q3 2023.
Year to date 2024, revenue stood at DKK123,592 million (USD17.4 billion), up from DKK114,257 million (USD16.96 billion). Profit for Q3 2024 stood at DKK7,950 million (USD1.15 billion), down from DKK9,470 million (USD1.37 billion) over the same period of last year.
DSV said the market in Q3 2024 was still impacted by uncertainty regarding the macroeconomic outlook and escalations around the situation in the Middle East and Red Sea. Its air and sea division continued its positive development with volume growth and continued market share gains in Q3 2024 leading to an increase in gross profit of 5.2 percent compared to the same period last year.
For sea freight, gross profit increased 11.8 percent in the same period driven by higher volumes and improved average gross profit yield, while gross profit for air was down 1.5 percent due to lower average gross profit yield partly offset by higher volumes.
DSV’s road arm reported stable results in a market that it said was characterised by overall weakened demand and low rates, especially towards the end of the quarter. High revenue growth driven by increased volumes resulted in relatively stable gross profit and EBIT before special items for Q3 2024 compared to the same period last year, despite increasing cost pressure. DSV said that division continues to focus on cost and productivity improvement measures to offset the current market situation. In early October 2024, it announced price increases for its customers to reduce the impact of the cost inflation from suppliers.
DSV added that it expects its deal for DB Schenker to close in Q2 2025.
