DSV Q1 revenues amounted to DKK19,979m* compared to DKK18,380m for the same period the previous year. In constant currencies and excluding the effects of IFRS 16, year-on-year growth was 7.9%. DSV stated that it has gained market share across all business segments. Furthermore, net revenue has grown in line with total revenue in the period which means growth has been achieved without pricing sacrifices.
DSV’s Air & Sea division revenues grew to DKK9,411m. This corresponded to a year-on-year growth of 10.2% in constant currencies and excluding the effects of IFRS 16. Revenue growth was aided by growth in freight volumes as well as higher average rates per shipment. The division reported an increase in sea freight volumes of 4% and air freight volumes of 5%, for Q1 2018.
The Road division’s growth was driven by higher activity. The division grew to DKK8,102m in Q1 2019. This corresponded to a year-on-year growth of 5.6% in constant currencies and excluding the effects of IFRS 16.
The company’s Solutions division also saw a combination of higher activity and improved underlying margin in the quarter. Solutions revenues grew to DKK3,049m. This corresponded to a year-on-year increase of 6.2% in constant currencies and excluding the effects of IFRS 16. In similar terms, net revenues grew by 9.1% to DKK1,126m.
Jens Bjørn Andersen, DSV Group CEO commented “We delivered strong results in Q1 2019, with healthy top-line growth across all divisions and a 15% underlying growth in EBIT. As previously announced, we have entered into an agreement to join forces with Panalpina and we expect that this transaction will close end Q3 this year”.
To facilitate the listing of new shares for the Exchange Offer to the shareholders of Panalpina, DSV withdrew its outlook for 2019. New financial outlook will be published once the combination with Panalpina is complete.
*f € = DKK 7.46/ $ = DKK 6.59
Note: the implementation of IFRS 16 Leases as from 1 January 2019 has a material impact on DSV’s financial statements and key ratios. Since 2018 figures have not been restated, growth rates and y-o-y comparisons are calculated excluding the effect of IFRS 16.
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