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DSV reports 59% growth in revenue and 71% growth in operating profit for 2021
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All three business areas—air & sea, road and solutions—contributed to the growth
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EBIT grew 90.2% and gross profit increased 58.4% in the last quarter of 2021
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For 2022, EBIT is expected to be in the range of DKK18 billion to DKK20 billion
Danish freight forwarder DSV performed very well in 2021, announcing a 59% growth in revenue and 71% growth in operating profit for the year, as all three business areas contributed to the growth.
Earnings before interest and taxes (EBIT) for the full year was DKK16.2 billion (approximately US$2.5 billion), while revenue amounted to DKK182.3 billion, up by 58.6%), DSV said in a statement.
“2021 has been a good—but also challenging—year for DSV,” said group CEO Jens Bjorn Andersen. “Supply chain disruptions, port congestion and record-high freight rates have been major themes during 2021, and our teams have worked hard to find solutions and move the cargo for our customers. Under these difficult market conditions, we are pleased to deliver a strong set of financial results for 2021.”
For the fourth quarter of 2021, revenue rose by 89.8%, driven by increased activity, higher freight rates and the impact from the acquisition of Agility’s Global Integrated Logistics (GIL), which DSV acquired in August 2021.
By adding GIL’s network and competencies, DSV said its ability to keep supply chains flowing, especially in the fast-growing markets of the Middle East and Asia-Pacific, was strengthened. The acquisition also boosted its competitiveness mainly in the solutions and air & sea divisions.
Gross profit in the fourth quarter of 2021 grew 58.4% compared to the last quarter of 2020, the growth driven by higher activity across all divisions.
In air & sea, the extraordinary freight markets with tight capacity and high rates had a positive impact on the gross profit, DSV said.
EBIT grew 90.2% in the last quarter of 2021 from the same period the preceding year. All three divisions contributed to the growth, fueled by organic growth in gross profit, improved conversion ratio and a positive contribution from GIL.
For 2022, EBIT is expected to be in the range of DKK18 billion to DKK20 billion. The 2022 outlook assumes a global economic growth of around 4% and similar growth levels in the transport markets.
DSV expects that the current situation with congestion, tight capacity and high rate levels will continue well into 2022. A gradual reduction of the congestion could start in the second half of the year.
Photo by Kurt Cotoaga on Unsplash
