DANISH logistics giant DSV has reported a decline in transport volumes in the second half of 2022, but profits have increased.
The company said it delivered strong results in 2022, driven by good performance across its business areas, but it has described a “negative development in freight volumes” beginning last year and likely continuing into the coming year.
It said it would normally expect transport volumes to grow in line with the economy, but volumes have declined more than GDP due to reduction of inventory levels and normalisation of consumer behaviour after Covid-19.
“Towards the end of the year, our performance was impacted by the general macroeconomic slowdown and a gradual normalisation of the freight markets,” DSV group CEO Jens Bjørn Andersen said.
“We expect this trend will continue into 2023 and this is reflected in our financial guidance,” he said.
DSV anticipates a recovery in the second half of this year.
Mr Andersen also highlighted the “strong set of results” delivered in 2022, despite the slowdown impacting its three divisions.
In 2022, the company’s gross profit increased by 33%.
“We achieved EBIT growth of 48% and a strong cash flow, driven by good performances across all divisions,” he said.
The company’s Air & Sea division posted a 53% increase in EBIT before special items, the Solutions division posted a 47% EBIT increase and the Road division reported a 9% EBIT increase for 2022.
DSV said its aim of taking market share “remains intact” across all divisions. It plans to monitor activity across the organisation and adjust capacity accordingly.
The company also noted the integration of Agility GIL within a year of acquisition.
“2022 was an eventful year, and I know that our teams across the organisation have worked hard to support our customers as they navigated extremely volatile freight markets and geopolitical unrest.
“We also enhanced our climate ambitions and have committed to a net-zero target for CO2 emissions by 2050.”
