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DSV’s gross profit and EBIT sank 15.1% and 30.6%, respectively in the first three quarters of the year
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The performance is in line with challenging market conditions and prior record earnings, the company said
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The Air & Sea division posted a 35.7% decrease in EBIT and the Solutions division a 16.9% drop but the Road division maintained consistent results
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DSV adjusted its 2023 EBIT guidance to Danish krone 17,500-18,500 million (US$2,473 million), up from the prior estimate of DKK 17,000-18,500 million
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Jens Bjørn Andersen will step down as CEO in September 2024 to be succeeded by Group COO Jens H. Lund
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The transition has no anticipated impact on DSV’s core operations or strategic objectives, the company said
Global logistics company DSV reported a 15.1% decrease in gross profit and a 30.6% decline in EBIT (earnings before interest and taxes) for the first nine months of 2023.
The numbers were expected due to market challenges and previous record earnings, the company said in a statement.
The Air & Sea division posted a 35.7% EBIT decrease, while the Solutions division reported a 16.9% dip. In contrast, the Road division maintained consistent results on par with the previous year.
Even if a real recovery in global freight volumes will not seem to materialize in 2023, DSV raised its EBIT guidance to DKK 17,500-18,500 million (US$2,473 million), up from the previous DKK 17,000-18,500 million estimate.
The outlook for the full year 2023 has narrowed, with EBIT before special items now projected in the range of DKK 17,500-18,500 million.
DSV CEO Jens Bjørn Andersen credited the results to the company’s flexible model and dedicated employees, saying, “In markets characterized by soft freight volumes and declining rates, we delivered solid results during the first nine months of 2023. The results reflect our flexible business model and, not least, our dedicated employees, who continue to deliver good customer service and efficiently manage our capacity. A real recovery in global freight volumes does not seem to materialize in 2023, but based on the performance so far, we raise the lower end of our 2023 EBIT guidance.”
Regarding changes to the Executive Board, set to take effect in 2024, the CEO assured the transition will not disrupt the company’s operations or strategy execution. He emphasized it would be “business as usual,” and the senior management team is committed to ensuring a seamless handover process.
Andersen will step down on September 30, 2024 with Group chief operating officer Jens H. Lund taking over.
DSV has announced a share buyback program of up to DKK 2.5 billion ($350 million), slated to conclude by January 13, 2024, signaling the company’s commitment to optimizing shareholder value.
With operations in over 80 countries across air and sea, road, and solutions divisions, DSV continues to be a global logistics powerhouse, employing 75,000+ individuals in 1,600 facilities worldwide.
