DSV reports 2.4% increase in Q1 EBIT

For the first three months of 2018, DSV recorded net revenue of DKK 18,380m in Q1, an increase of 0.86% compared to Q1 2017. Adjusted for exchange rate fluctuations (constant currencies), growth for the period was 5.6%.

Gross profit on the other hand decreased 2.37% to DKK 4,120m. In constant currencies, the growth in gross profit was 3%.

Operating profit before special items increased 2.39% to DKK 1,156m. The growth in earnings was mainly driven by the Air & Sea and Solutions divisions. In constant currencies, EBIT growth came to 9% in Q1 2018.

The global freight and logistics markets continue to exhibit positive trends in most areas, driven by the general economic development. The air freight market was the strongest with an estimated 5-6% volume growth, whereas other markets grew in line with the underlying economy, estimated at 2-4%. The Air & Sea division achieved a growth in net revenue of 6.2%, Road 3.3% and Solutions 10.3% (in constant currencies). Relative to the same period of 2017, net revenue was negatively impacted by a lower number of working days, due to the timing of Easter.

Jens Bjørn Andersen, CEO, commented: “DSV performed well in the first quarter of 2018 and delivered growth in both freight volumes and EBIT. Based on the good start to 2018 and overall positive market trends we increase the low end of the EBIT guidance range for the full-year and launch a new three-month share buyback programme of DKK 1.1 billion.”

The consolidated full-year outlook for 2018 previously announced is adjusted as follows:

  • Operating profit before special items is expected to be in the range of DKK 5,100-5,400m (previously DKK 5,000-5,400m).
  • Adjusted free cash flow is expected to approximate DKK 4,000m (unchanged).
  • The effective tax rate is expected to be 23% (unchanged).

Source: DSV