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Gross profit grew 61% year on year US$3.68 billion in the first half of 2022, while EBIT before special items increased 102% to US$1.91 billion – all on the back of the August 2021 buyout of GIL
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Amid challenging market conditions, all divisions posted EBIT growth, with air & sea reporting a 105% jump during the period, solutions soaring 179%, and road rising 20%
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The group said all material parts of the GIL integration were completed in less than 12 months due to considerable efforts of the DSV and GIL teams
Danish global transport and logistics services supplier DSV reported on July 26 strong half-year 2022 results, with EBIT doubling to Danish krone 13.95 billion (US$1.91 billion).
Supported by the integration of Global Integrated Logistics (GIL) in August last year, revenue grew 87% year-on-year to DKK123.87 billion (US$16.93 billion) in the first half of 2022.
Gross profit grew 61% y-o-y to DKK26.95 billion (US$3.68 billion), while EBIT before special items climbed 102% to DKK13.95 billion (US$1.91 billion).
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“In Q2 2022, we continued to deliver strong results across all business areas. For the first six months of the year, EBIT before special items doubled and free cash flow more than tripled compared with the same period last year,” DSV Group chief executive Jens Bjorn Andersen said.
“We have now completed most of the GIL integration, and we can look back on a swift and successful integration, thanks to a solid effort across our organization.”
Amid challenging market conditions, DSV achieved spectacular EBIT growth in all divisions in the first half of 2022, with air & sea posting a 105% jump, solutions soaring 179%, and road gaining 20%.
The company noted that uncertainty looms and large parts of the global logistics market are challenged by congestion, COVID-19 lock-downs and continued high rates.
“The uncertainty in the global economy has intensified and the demand for freight services has softened in recent months. Still, large parts of global supply chains are challenged by congestion, and our focus remains on assisting and finding the right solutions for our customers,” Andersen said.
Based on its strong performance in the first half and its expectations for the remainder of the year, the company upgraded its full-year outlook for 2022 as follows:
EBIT before special items is expected to range between Danish krone 23 billion and DKK25 billion (US$3.15 billion and US$3.42 billion), adjusted from a previous range of DKK21 billion-DKK23 billion.
The company said the outlook is based on its assumption of a global GDP growth of 2-3% for 2022.
“We expect that the demand for air and sea freight transport will remain soft for the rest of the year. Uncertainty concerning the macro environment and the global logistics market remains high and changes to the outlook may occur,” DSV cautioned.
DSV said it will announce on July 26 a new share buyback program of up to DKK7 billion. The program will be concluded no later than October 24 this year.
