DSV has delivered top-line growth across all business areas and improvement of margins in the first nine months of 2018. For Q3 2018, revenue amounted to DKK* 20,237m against DKK 18,735m for the same period last year. Growth for the period was 9.7% under constant currencies. The growth was driven by higher activity levels in all divisions, and DSV has gained market share, particularly within air freight and contract logistics.
DSV’s Air & Sea division grew net revenue by 6.4% to DKK 9,625m against DKK 9,044m for the same period last year. This corresponded to a growth in constant currencies of 8.3%. The division reported an increase in sea freight volumes of 3.9% and air freight volumes of 7.3%, for Q3 2018, driven by growth in export volumes from EMEA and Americas. For Q3 2018, EBIT before special items totalled DKK 1,013m against DKK 903m for the same period last year.
For Q3 2018, net revenue for DSV Road amounted to DKK 7,812m against DKK 7,514m for the same period last year, corresponding to a growth in constant currencies of 5.5%. The increase was attributable to the growth in number of shipments and higher average prices. EBIT, for the period, before special items totalled DKK 345m against DKK 311m for the same period last year.
Net revenue for DSV Solutions, its contract logistics segment, totalled DKK 3,417m against DKK 2,757m for the same period last year, corresponding to a growth in constant currencies of 25.0%. The growth has been boosted by the addition of new warehouse capacity and replacement of existing, smaller and less efficient sites. EBIT before special items totalled DKK 184m against DKK 115m for the same period last year. In constant currencies, growth came to 61.4% which was attributable to the performance in the EMEA region.
DSV are conscious of the increased protectionist measures between the US and China but have stated that they ‘have not yet had any material impact on DSV’s transport volumes.’ Commenting on this, Jens Bjørn Andersen, Group CEO said: “The implementation of trade tariffs continues to create uncertainty in our industry, but so far, we see a negligible impact on our activities. Based on our performance so far and expectations for the rest of the year, we are adjusting our earnings outlook.”
Source: DSV
DKK = €0.13 / $0.15
