DSV Panalpina has announced its financial results for Q3 2020. Revenue for Q3 2020 was DKK*28,125m, up 14.7% year-on-year. EBIT before special items increased by 44.7% to DKK 6,094m.
Revenues in Air & Sea in Q3 2020 rose to DKK17,910m, increasing 28.1% year-on-year. EBIT before special items totalled DKK2,217, up 57.6% compared to Q3 2019. The increase in revenue was primarily attributed to the Panalpina acquisition. Revenue was negatively impacted by lower volumes following COVID-19, but this was offset by strong gross profit per shipment, especially in air freight.
Sea freight volumes (TEUs) grew 9% in Q3 2020. For air freight volumes, the division reported a volume (tonnes) increase of 4% in Q3 2020. Volume growth was attributed to the acquisition of Panalpina. By the end of Q3 2020, close to 100% of Panalpina’s volumes had been transferred, and are no longer able to separate organic growth from acquired growth.
DSV Panalpina’s Road division revenues amounted to DKK23,633m for Q3 2020, corresponding to a decline of 0.7%. EBIT before special items totalled DKK448m in Q3 2020, compared to DKK343m for the same period last year, which corresponds to a growth of 32.9%. The growth in EBIT before special items was driven by the growth in gross profit and lower cost base due to savings from COVID-19 initiatives.
DSV Panalpina’s Solutions division revenue amounted to DKK3,388m, compared to DKK3,465m for the same period in 2019. Revenue was negatively impacted by COVID-19, especially during Q2 2020. EBIT before special items totalled DKK312m, compared to DKK239m in Q3 2019. Growth in EBIT before special items was driven by higher gross profit and reduced cost base due to COVID-19 cost savings. The growth was driven by strong performance in Europe and improved results in APAC. Panalpina added scale to the division in APAC, and the region has achieved good development both in activity and EBIT in 2020.
“In the third quarter of 2020, all three divisions delivered results above our expectations. Market conditions have been better than anticipated across most of our markets, and at the same time, we benefit from efficient cost management. We are happy to announce that all material aspects of the Panalpina integration have now been successfully completed and we can now intensify the focus on organic growth,” said Jens Bjørn Andersen, Group CEO.
Source: DSV Panalpina
* € = DKK7.45 / $ = DKK6.36
