DSV Panalpina‘s revenue for Q3 2019 was DKK*24,521m, up 21.2% year on year due to the acquisition of Panalpina. YTD revenues grew by 11.1% year on year to DKK64,579m. However, excluding acquisitions and IFRS 16 reporting impact, Q3 revenue dropped by 1.3% year on year and YTD revenues grew by 3.0% year on year.
In Q3 2019, EBIT (before special items) increased 11.9% year on year to DKK1,682m, and YTD EBIT grew 18.4% to DKK4,870m. Excluding acquisitions and IFRS 16 reporting impact, Q3 EBIT grew by 6.1% year on year and YTD EBIT grew by 7.9% year on year.
Revenues in Air & Sea in Q3 2019 rose to DKK13,981m, primarily due to the acquisition of Panalpina. Organic growth, excluding acquisitions, was 1.4% year on year. YTD, the division’s organic growth was 5.4%. Q3 EBIT (before special items) totalled DKK1,220m which corresponds to an organic growth of 13.1% year on year.
Sea freight volumes (TEUs) grew 41% in Q3 2019. Excluding Panalpina volumes, organic growth was approximately 7%. For air freight volumes, the division reported a volume (tonnes) increase of 63% in Q3 2019. Excluding Panalpina volumes, organic growth was a decline of 6%.
DSV Panalpina’s Road network revenues declined to DKK7,698m for Q3 2019. Organic growth for the quarter was -2.2%. Although the division was positively affected by the acquisition of Panalpina, it was negatively affected by the divestment of the US-based Market Transport Ltd. Shipments also declined due to a lower market growth in most markets, especially the slowdown in the automotive sector and lower activity on UK related traffics. EBIT (before special items), excluding acquisitions and IFRS 16 reporting impact, decreased in the quarter by 10.7%.
DSV Panalpina’s Solutions sector revenue increased to DKK3,465m for Q3 2019. The organic growth for the quarter was negative 8.0% year on year, also impacted by the slowdown in the automotive sector. EBIT (before special items), excluding acquisitions and IFRS 16 reporting impact, increased by 2.9% for the period.
Jens Bjørn Andersen, Group CEO: “The closing of the Panalpina transaction on 19 August was the all-important event in Q3. We have had a good start to the integration and the first operational integrations have already started. Meanwhile, we are pleased to report strong results for Q3, despite challenging market conditions, especially in the air freight market.”
* $ = DKK 6.66 / € = DKK 7.47
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