GLOBAL logistics giant DSV reported strong first-quarter results and upped its outlook for the full 2022 year.
The company’s gross profit grew 61% over the quarter, while its EBIT before special items more than doubled compared with the same period last year.
A statement from the company said the challenging and volatile market conditions in the global supply chains continue in 2022 and are especially impacted by the conflict in Ukraine and new COVID-19 lockdowns in China.
The company said the performance of its “solutions” division was outstanding, with an EBIT growth of nearly 200%, driven by strong gross profit growth and continued investments in warehouse automation. Additionally, the GIL integration contributed strongly to the division’s result.
The air and sea division reported an EBIT growth of 109%, while the road division steered through the disruptive market conditions with 24% EBIT growth compared to the same period last year.
The previously disclosed guidance for 2022 is upgraded. EBIT before special items is expected to be in the range of DKK 21,000-23,000 million ($4.2 billion to $4.6 billion) (previously DKK 18,000-20,000 million [$3.6 billion to $4 billion]).
The group reported a gross profit of DKK 12,877 million ($2.6 billion) for the first three months of 2022, compared to DKK 7,785 million ($1.55 billion) for the same period last year. This increase was driven by the addition of GIL business and growth in all divisions – especially the air and sea and “solutions” divisions.
EBIT before special items for the first three months of 2022 came to DKK 6,496 million ($1.3 billion), compared to DKK 3,067 million ($611 million) for the same period last year.
DSV group CEO Jens Bjørn Andersen said the integration plans for GIL are on track for completion in the third quarter of this year.
“The markets continue to be impacted by tight capacity and congestion, and 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 said.
“The difficult situation in Ukraine is on everyone’s mind. 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. Still, the situation has impacted the markets negatively in several ways, especially for air and road transports, and we continue to do our best to find capacity and alternative solutions for our customers.”
