DSV reports good 2023-Q1 results and strong cash flow. Gross profit was down 11%, while EBIT before special items declined by 28% compared to last year’s results.
DSV’s Air & Sea division reported a 31% decrease in EBIT, impacted by lower freight volumes compared to Q1 2022.
The Solutions division also experienced reduced activity in Q1 2023, reporting a 31% decline in EBIT. However, the performance of the Road division was positive, with results on par with the same period last year.
The ongoing macroeconomic slowdown and normalising market conditions after years of disruption have significantly impacted global trade volumes. As a result, DSV maintains its long-term ambition of outgrowing the general market and focuses on delivering value to customers.
DSV expects global trade volumes to improve gradually in the coming quarters and stands by its full-year EBIT guidance to remain in the range of DKK 16,000 – 18,000m for 2023.
“As anticipated, the demand for transport services and freight rates declined during the first quarter of 2023. Nonetheless, we achieved good results and strong cash flow in all our business areas by providing good customer service and efficiently managing our capacity. We expect that global trade volumes will improve gradually in the upcoming quarters, and we stand by our full-year EBIT guidance for 2023”, said Jens Bjørn Andersen, Group CEO.
As announced in the 2022 Annual Report, DSV maintains its outlook for 2023 with Operating profit (EBIT) before special items expected to be around DKK 16,000-18,000m and the effective tax rate to be approximately 24.0%.
In addition to publishing Q1 results, DSV issued a separate announcement about launching a new share buyback programme of up to DKK 4.5bn, which will be concluded no later than 24 July 2023.