Freightex reports solid results for 2023
Operating in an environment with softening demand and normalising freight markets, DSV delivered solid results for 2023. Gross profit decreased by 13.4%, while EBIT before special items was down by 27.4% compared to 2022. These results were in line with expectations after the extraordinary results of 2022.
Today’s highlights
- The general decline in global trade had an adverse impact on the Air & Sea division, which experienced a 33.1% drop in EBIT compared to 2022. The EBIT for Solutions decreased by 10.7%, and the Road division delivered EBIT figures in line with its 2022 results.
- Effective today, Group CEO Jens Bjørn Andersen will step down, and Jens H. Lund will take over as the new Group CEO. In line with the company’s long-term succession planning, DSV has made changes to the Executive Board and Group Executive Committee. The new management team will support Jens H. Lund to deliver on DSV’s strategic focus areas.
- Amid geopolitical uncertainty and ongoing supply chain disruptions, DSV is ready to support its customers and maintains its ambition of outgrowing the general market. DSV has built a strong foundation for organic growth via several acquisitions, and M&A remains an important part of its strategy.
- DSV’s 2030 near-term carbon emission targets were validated by SBTi in 2023. To deliver on these ambitions and progress towards the company’s 2050 net-zero commitments, DSV has developed a decarbonisation roadmap, outlining the four key levers required to move towards its decarbonisation targets.
Group CEO Jens Bjørn Andersen:
“DSV delivered solid financial results for 2023, in line with our expectations. In a market characterised by declining demand for transport services across most markets, we demonstrated our ability to adapt to changing market conditions, and our dedicated employees continued to deliver excellent customer service. During 2023, we were happy to announce an exclusive logistics joint venture with NEOM Company and we have continued the work to strengthen our network services and industry expertise. We also made important progress on the sustainability agenda, developing roadmaps for our decarbonisation efforts.
Today, the previously announced changes to our executive management team will take effect, and this is my last day as Group CEO. I would like to take this opportunity to thank customers, suppliers and partners – and not least my fantastic DSV colleagues across the globe – for the support and confidence in DSV and me over the years. Jens Lund and a strong team around him are now ready to take over and continue DSV’s journey, and I wish everybody all the best.”
Outlook for 2024
- EBIT before special items is expected to be in the range of DKK 15,000 – 17,000 million.
- The effective tax rate of the Group is expected to be approximately 24%.
The outlook assumes global GDP growth around 3% in 2024, and that the markets for Air & Sea will grow 3-4% in 2024. We target profitable, above market growth, but our strategic growth initiatives may only have a gradual impact in 2024.
For Road we expect a flat or low-growth market, while the market for Solutions (contract logistics) is expected to achieve higher growth rates in 2024.
We continue to monitor activity closely across our organisation and adjust capacity and cost base accordingly.
We assume that the currency exchange rates, especially the US dollar against DKK, will remain at the current level.
The geopolitical and macroeconomic environment remains uncertain, and unforeseen changes may therefore impact our financial results.