DSV Panalpina has released its financial results for the six months ended June 30, 2020. The company reported a 41.3% year-on-year increase in total revenues reaching DKK*56,091m. EBIT before special items totalled DKK4,179m, up 36.5% in comparison to H1 2019 (DKK3,085m).
The combination of Panalpina had a significant impact on the consolidation balance sheet and income statement for the Group in H1 2020 compared to the same period in 2019.
The company has stated that the operational and legal integration of Panalpina is progressing slightly ahead of plan, and more than 90% of the Panalpina volumes have been transferred to DSV’s IT platforms. Due to the process of the integration it is not possible to separate organic growth from acquired growth. Therefore, all the growth numbers stated in the H1 2020 report include the impact from M&A.
The Air & Sea division was positively impacted by the integration of Panalpina, but freight volumes were negatively impacted by the coronavirus crisis. Revenues totalled DKK35,818m, EBIT before special items was DKK3,242m (2019: DKK2,091m). The strong performance, especially in the second quarter of 2020, was partly due to temporary high yields in air freight and high profitability of the air charter network.
DSV’s Road division reported a 5.7% decline in revenues compared to the same period last year. EBIT before special items was DKK522m, a year-on-year decline of 17.8%. Activity levels, especially for international transports, were significantly impacted by the coronavirus crisis.
DSV’s Solutions sector revenue increased to DKK6,697m with growth of 9.1% year-on-year. EBIT before special items was DKK393m for the first six months of 2020, a decline of 7.5% compared to the same period last year. Activity in e-commerce was strong following the coronavirus crisis, whereas activity levels in more traditional industries have been severely impacted.
“Recent months have developed better than we anticipated when the COVID-19 crisis started, and we are pleased to report 63% growth in EBIT before special items for Q2 2020 and 37% growth for the first half of the year. Strong cost management and the continued successful integration of Panalpina have been important drivers for our results. COVID-19 has created an extraordinary market situation in air freight, and here we have been able to help our customers and have benefitted from the legacy Panalpina freighter network. The uncertainty remains higher than normal, but based on a strong first half of 2020 we are now able to reinstate guidance for the full year. We now expect EBIT before special items on level with the guidance we gave to the market before this crisis started,” said Jens Bjørn Andersen, Group CEO.
Source: DSV Panalpina
*€=7.44DKK / $=6.29DKK
