Revenues at DSV covering FY 2024 have climbed year on year but profitability has taken a hit. Progress at its Neom joint venture was reported to be developing at a slower rate than expected.
Revenues at DSV for FY 2024 grew year on year to DKK167.1 billion (USD23.13 billion) up from USD20.87 billion in FY2023. Profit for the period declined from USD1.72 billion to USD1.41 billion. For Q4 2024, DSV’s revenue grew quarter on quarter, leaping from USD5.06 billion to USD6.02 billion. Profit for the period, however, fell from USD406.5 million to USD307.9 million.
DSV said that while gross profit decreased by 1.2 percent compared to 2023 and EBIT before special items by 8.4 percent in constant currencies, earnings growth returned in the second half of 2024, despite its road division being impacted by a weaker market in Q4 2024. Group ceo Jens H. Lund said: “We delivered solid financial results for 2024, in line with our expectations, and returned to earnings growth in the second half of the year.”
DSV noted that its air and sea arm showed positive commercial development and the company gained market share with an organic volume growth of 7 percent in Q4 2024 compared to the same period in 2023. In combination with stable gross profit yields for both air and sea, the division delivered gross profit growth of 8.3 percent and EBIT before special items growth of 8.4 percent.
In terms of outlook, the company’s full-year guidance for 2025 excludes impact from the announced acquisition of Schenker, which is still expected to close in Q2 2025. The outlook for the air and sea freight market assumes continued growth in global volumes of around 3 percent in line with global GDP forecasts, despite the current macroeconomic and geopolitical uncertainties. For the road market, it expects flat to low-single digit market growth, with market conditions still expected to be weak during the first half-year.
DSV also spoke briefly on its joint venture with Neom – Saudi Arabia’s massive civil and industrial construction project. DSV said in its 2024 earnings call that the joint venture had “evolved significantly slower than we’d expected”, and that although there is some activity, “it’s taking a lot of time”. DSV plans to reduce the resources invested into the venture until there is more certainty around demand.
