DSV achieved strong financial results in Q1 and upgraded its outlook for the whole year 2022
DSV posted strong Q1 results across all business segments complemented by the consolidation of GIL, with gross profit increasing 61% in Q1 2022 compared to the same period last year.
DSV - The Danish transport and logistics group reported strong financial growth in Q1 2022 results in all three of its divisions including Solutions, Air & Sea and Road. The company's CEO, Jens Bjørn Andersen, confirmed that "for Q1 2022, we report a strong set of results, with earnings growth across all divisions and a strong cash flow."
DSV posted gross profit of approximately $1.8 billion in the first three months of 2022, an increase of about $700 million compared to the same period last year.
The company said this strong growth was driven by the addition of GIL's business and growth across all divisions, particularly the Air & Sea and Solutions division.
In addition, DSV's earnings before interest and taxes (EBIT) in Q1 reached $920 million, up more than twice as much as in the same period in 2021.
DSV's business results in Q1 2022 (Source: DSV)
Jens Bjørn Andersen said that DSV is monitoring plans for Agility GIL integration and is on track to be completed in Q3. He also noted that the market continues to be affected by tight capacity and congestion.
“In March we saw the return of Covid-19 lockdowns in China - a reminder to us all that the pandemic is still not over,” he pointed out.
Commenting on the impact of the war in Ukraine on DSV operations, Andersen said, "DSV shipments to and from Russia and Belarus have stopped, except certain humanitarian shipments, and we are in the process of divesting and exiting our activities in Russia. The direct financial impact is not material as the combined revenue in Ukraine, Russia and Belarus represents less than 1% of the Group's revenue."
The DSV Group expects that continued disruptions to the global supply chain will support high demand for their services. Based on strong performance in Q1 2022 and expectations for the rest of the year, DSV has upgraded its full-year outlook for 2022, with a forecast EBIT in the range of DKK 21,000-23,000 million (before it was DKK 18,000-20,000 million), equivalent to $2.9-3.3 billion.
Read more:
- DSV removes Panalpina name from its company name 'DSV Panalpina A/S'
- DSV Panalpina becomes world's largest forwarder after acquiring Agility
Source: Phaata.com (According to DSV)
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