DSV’s revenue declines 40% in Q2 2023
The Air & Sea division saw a 35.7 percent decrease in EBIT before special items for H1 2023.
DSV reported 40 percent decline in revenue to DKK 37 billion ($5.4 billion) in the second quarter of 2023 ended in June 2023 compared to the same period last year.
“DSV reports good H1 results and strong cash flow, adapting to soft market conditions by leveraging its asset-light business model. Gross profit was down 14.2 percent and EBIT before special items 31.6 percent from last year's extraordinary results but compare favourably to pre-pandemic levels,” reads the release.
The Air & Sea division saw a 35.7 percent decrease in EBIT before special items for H1 2023, impacted by lower freight volumes and rates compared to the same period last year.
The Solutions division experienced reduced activity in H1 2023, reporting a 23.4 percent decline in EBIT before special items compared to an exceptionally strong H1 2022. The decline was largely due to a slight drop in activity and an expansion of warehouse capacity.
The Road division reported a 2.8 percent decrease in EBIT before special items. In a market with lower activity across most sectors, the division performed well and gained market share.
During the first half of 2023, the demand for transport and logistics services has been marked by the macroeconomic situation. In parallel, the logistics markets have quickly normalised after the disruptions in recent years. In a highly competitive market, DSV is reinforcing its commercial efforts and maintaining its ambition of outgrowing the general market while delivering value to customers.
"Based on DSV's good performance in H1 2023 and the assumption of a gradual improvement in transport volumes in H2 2023, DSV upgraded the full-year outlook for 2023." it reads
EBIT before special items is expected to be in the range of DKK 17,000-18,500 million (previously DKK 16,000-18,000 million).
Jens Bjørn Andersen, Group CEO: "In Q2 2023, we delivered a solid set of results across all three divisions and a strong cash flow. The demand for transport and logistics services is soft, and during the first half of 2023 we have demonstrated our ability to adapt to changing market conditions. The market development outlook is still uncertain, but we see signs of stabilisation and we anticipate gradual improvement in global trade volumes over the next quarters."
DSV also issued a separate company announcement about the launch of a new share buyback programme of up to DKK 4.0 billion. The programme will be concluded no later than 23 October 2023.