THE world’s No 3 biggest forwarder dsv has declared a 102.7 per cent year-on-year increase in second quarter operating profit to DKK6.2 billion (US$84.9 million), drawn on revenues of DKK62.7 billion, up 65.8 per cent.
‘Large parts of global supply chains are still challenged by congestion, and our focus remains on assisting and finding the right solutions,’ said CEO Jens Bjorn Andersen.
The Danish forwarding giant also reported positive air results for the second quarter, aided by ongoing seafreight disruption and its acquisition of Agility’s Global Integrated Logistics (GIL), against a softening of demand.
‘We have now completed most of the GIL integration, and we can look back on a swift and successful integration, thanks to a solid effort across our organisation,’ he said.
‘The uncertainty in the global economy has intensified and the demand for freight services has softened in recent months,’ Mr Andersen said.
‘The significant increase in EBIT before special items was driven by the inclusion of GIL and general growth in gross profit and was further supported by the continued focus on productivity, optimisation and cost management,’ said DSV.
The division’s second-quarter revenue amounted to DKK47.3 billion, representing growth for the quarter of 72.5 per cent on last year.
Besides the addition of GIL, revenue growth was driven by higher air and seafreight rates compared to last year. These rates have offset a decline in volumes, said DSV.
DSV achieved 15 per cent year-on-year volume growth in air freight in the second quarter to 402,594 tonnes against an estimated market decline of 7-10 per cent for the period.
Speaking about the company’s full year outlook for 2022, DSV said EBIT before special items is expected to be in the range of DKK23-25 billion.
The company said it expects that ‘demand for air and sea freight transport will remain soft for the rest of the year’ and ‘uncertainty’ about how the global economy and congestion in the logistics market will develop remains. Integration of GIL will bolster earnings into 2023, said the company.
