Page 8 of 21 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 900 – 29 July 2021
passenger flights, and we only expect a gradual return of long-
haul passenger flights.
On a like for like basis (adjusted for disposal of Airflo
perishables activities as per 1 July 2020), DSV achieved growth
of approximately 26% in Q2 2021 (YTD 2021: 11%) which is in
line with market growth.
Divisional revenue
The division’s revenue amounted to DKK 48,872 million for the
first six months of 2021, compared to DKK 35,818 million for the
same period last year. The growth for the period was 42.7%.
For Q2 2021, revenue amounted to DKK 25,948 million,
compared to DKK 19,144 for the same period last year. Growth
for the quarter was 40.3%.
The growth in revenue in H1 2021 was driven by the elevated
freight rates and during Q2 2021 also by double digit growth in
volumes, for both air and sea.
All regions contributed to the strong growth in revenue for the
first six months of 2021, and in line with market trends, the
division saw the strongest growth in APAC and Americas, where
the China-US trade is growing at a high pace. The growth in
APAC was, however, also impacted by the exceptional surge in
demand for higher yielding goods, incl. PPE, in Q2 2020. This
market has now normalised, and as a consequence, the division
saw a decline in gross profit from air freight in Q2 2021
compared to the same period last year.
Gross profit
For the first six months of 2021, gross profit amounted to DKK
9,930 million, compared to DKK 8,538 million for the same
period last year, which corresponds to a growth of 21.3%.
For Q2 2021, gross profit amounted to DKK 5,142 million,
compared to DKK 4,663 million for the same period last year,
which corresponds to a growth of 13.9%
The growth in the first six months of 2021 was driven by strong
yields per unit in both air & sea, and in Q2 2021 also by double-
digit volume growth.
The market conditions with tight capacity, congestion and
disruption on the global logistics markets continue to have a
positive impact on gross profit per TEU (sea freight) and per
tonne (air freight). Our skilled freight forwarders, scale and
strong carrier relationships enable us to find transport solutions
for our customers, despite the disruption caused by the
pandemic. At the same time, disruptions impact the time
consumption per shipment as our freight forwarders work hard
to find the most optimal solutions for our customers.
The division’s gross margin was 20.3% for H1 2021, compared
to 23.8% last year. The decline was due to the impact from
pass-through revenue, where higher freight rates cause lower
gross margin.
EBIT before special items
EBIT before special items came to DKK 5,236 million for the first
six months of 2021, compared to DKK 3,242 million for the same
period last year. This corresponds to a growth for the period of
69.0%.
For Q2 2021, EBIT before special items was DKK 2,843 million,
compared to DKK 2,112 million for the same period last year,
which corresponds to a growth of 39.5%.
The strong EBIT before special items was driven by the growth
in gross profit, and, further supported by the full-year impact of
cost saving initiatives and realised synergies.
All regions contributed to the strong growth in EBIT before
special items with Americas and EMEA delivering the highest
growth rates.
The conversion ratio was 52.7% for H1 2021, compared to
38.0% for the same period last year, clearly reflecting the high
productivity of the staff, scalability of the systems and cost
discipline.
Net working capital
The Air & Sea division’s net working capital came to DKK 5,582
million on 30 June 2021, compared to DKK 3,864 million on 30
June 2020.
FINANCIAL DEVELOPMENT 2020 - 2021