In This Article:
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Revenue Growth: Nearly 20% growth in revenue, driven by volume and freight rates.
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EBIT Growth: Increase in EBIT in fixed currencies in the second half of 2024 compared to the same period last year.
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Gross Profit (GP): Growth in GP for air and ocean freight divisions.
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Productivity: 16% more jobs handled per FTE.
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Net Working Capital: DKK4 billion increase, primarily due to air and sea division growth.
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Gearing Ratio: 0.0x, adjusted to 1.7x considering share capital increase.
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Proposed Dividend: DKK7 per share.
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2025 EBIT Guidance: DKK15.5 billion to DKK17.5 billion, excluding Schenker.
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Tax Rate: Continues at approximately 24%.
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Schenker Acquisition Financing: EUR5 billion in shares, EUR5 billion in bonds, and EUR3 billion from core banks.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DSV AS (DSDVF) reported solid performance for 2024, with growth in gross profit (GP) and EBIT for the third consecutive quarter.
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The company has successfully outgrown its addressable market in both air and ocean freight, indicating strong market positioning.
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DSV AS (DSDVF) has improved productivity, handling 16% more jobs per full-time equivalent (FTE) compared to the previous year.
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The Schenker acquisition is progressing well, with 33 out of 36 regulatory approvals obtained, and financing in place for the transaction.
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The company has a strong pipeline with customers, suggesting continued volume growth in 2025, particularly in air and sea freight.
Negative Points
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Inflationary pressures have impacted the cost base, particularly in wages and IT licenses, which may continue to affect profitability.
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The road division experienced weak results due to structural challenges in the European market and a one-off adjustment in the US.
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The solutions division faced a flat development in the last quarter, with idle capacity affecting profitability and a need to address declining return on invested capital (ROIC).
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The NEOM joint venture has evolved slower than expected, with significant red tape causing delays.
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The company faces uncertainties in the macroeconomic and geopolitical environment, which could impact future performance.
Q & A Highlights
Q: Can you discuss the impact of the Schenker integration on your organic growth and how you plan to support it during this period? A: Jens Lund, Group CEO: Organic growth typically slows during integration, and we factor in some revenue loss. However, DSV's stronger market position and structured customer approach should help mitigate this. We aim to manage the integration to minimize volume loss, making the Schenker transaction more attractive.