The Danish transport and logistics group DSV has reported strong first quarter results with growth and high productivity across all its three divisions, Solutions, Air & Sea and Road, with the company’s CEO, Jens Bjørn Andersen, confirming that “for Q1 2022, we report a strong set of results, with earnings growth across all divisions and a strong cash flow.”
DSV achieved a gross profit of approximately US$1.8 billion for the first three months of 2022, increased by around US$700 million compared to the same period last year.
The company said this strong increase was driven by the addition of GIL business and growth in all divisions, especially the Air & Sea and Solutions divisions.
Additionally, DSV’s earnings before interest and taxes (EBIT) for the first quarter reached US$920 million, translating to a more than twofold increase compared to 2021 Q1.
Jens Bjørn Andersen announced that DSV is tracking the plans for the GIL integration and is on track for completion in the third quarter, while he noted that the markets continue to be impacted by tight capacity and congestion.
“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 pointed out.
Commenting on the barely noticeable impact of the war in Ukraine on DSV’s operations, Andersen said, “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.”
The group expects that the continued disruptions of global supply chains will support a high demand for its services. Based on the strong performance in Q1 2022 and expectations for the remainder of the year, DSV has upgraded the full-year outlook for 2022, announcing a forecasted EBIT in the range of US$2.9 – 3.3 billion.
