Global freight forwarder DSV announced increased total revenues, profits and earnings for 2022, compared with the previous year’s results.
In particular, the company’s revenue rose over 20% to US$35 billion, gross profit increased by 33% to US$7.6 billion and earnings before interests and taxes (EBIT) before exceptional items almost doubled to US$4 billion, while DSV’s adjusted free cash flow has more than double compared to 2021.
DSV said its performance was affected at the end of 2022 by the global macroeconomic downturn and the gradual normalisation of freight markets. The company, however, effectively integrated Agility GIL within a year of the purchase.
DSV’s forecast for 2023 shows an EBIT before special items in the US$23-26 billion area, while the company’s effective tax rate is estimated to be around 24%.
Normally, DSV would expect transport volumes to expand in sync with the economy, but volumes fell faster than GDP in the second half of 2022 due to inventory reductions and the normalisation of consumer behaviour following Covid-19 pandemic.
DSV anticipates that the declining trend in freight volumes will continue in the first half of 2023, with a rebound in the second half of 2023.
“DSV delivered a strong set of results for 2022. 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,” stated Jens Bjørn Andersen, CEO of DSV.
