DSV Group
global, yet our presence is local and close to our customers. Approximately 75,000 employees in more than 80 countries work passionately to deliver great customer
experiences and high-quality services. Read more at www.dsv.com
INTERIM FINANCIAL REPORT
H1 2024
Company Announcement No. 1123
24 July 2024
Strong Q2 2024 results with market share gains in all divisions
• The DSV Group achieved strong Q2 2024 results in line with expectations, with a decline in gross profit of 4.0% and a 12.4%
decline in EBIT before special items compared to the same period last year. The financial results reflect a strong performance
with further market share gains in all three divisions despite a competitive market.
• Sequentially, comparing Q2 2024 to Q1 2024, the DSV Group achieved nominal growth throughout Q2 2024 in EBIT before
special items of 12.6% driven by increasing volumes and stabilisation of earnings per unit in Air & Sea.
• Solid adjusted free cash flow for Q2 2024 was impacted by higher net working capital due to increased activity and higher freight
rates throughout the quarter.
• Based on our strong performance in the first half year and outlook for the second part of the year, we are narrowing the full-year
2024 EBIT guidance to DKK 15,500-17,000 million.
Jens H. Lund, Group CEO: “In a challenging environment, we delivered a strong financial performance in Q2 2024 driven by positive
volume growth and stabilisation of gross profit per unit in the Air & Sea division. We continue to gain market share across all three divisions
driven by our strengthened commercial platform. Furthermore, we have increased our productivity in all three divisions.”
Selected key figures and ratios for the period 1 January – 30 June 2024
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Key figures (DKKm)
Revenue
41,157
37,727
79,497
78,681
Gross profit
10,841
11,331
21,106
22,722
Operating profit (EBIT) before special items
4,099
4,705
7,740
9,377
Profit for the period
2,712
3,375
5,105
6,662
Adjusted earnings for the period
2,790
3,448
5,253
6,788
Adjusted free cash flow
1,229
3,239
1,672
8,137
Ratios
Conversion ratio
37.8%
41.5%
36.7%
41.3%
Diluted adjusted earnings per share of DKK 1 for the last 12
months
52.7
69.8
Performance in Q2 2024
In a challenging environment, DSV demonstrated a strong financial performance characterised by an uptake in volumes, market share
gains across all three divisions and solid cash flow generation. On the back of this performance, we are narrowing our full-year guidance to
DKK 15,500-17,000 million, and we launch a new share buyback programme of DKK 1,500 million.
Air & Sea continued to see a stabilisation of gross profit per unit during Q2 2024, indicating a steady operational performance in a
competitive and fluctuating market. While the situation in the Red Sea has not yet materialised in our financial results, it is expected to have
a slightly positive impact in the second half of 2024.
DSV Group
global, yet our presence is local and close to our customers. Approximately 75,000 employees in more than 80 countries work passionately to deliver great customer
experiences and high-quality services. Read more at www.dsv.com
Road continued to deliver satisfactory results in a competitive market with stable gross profit and a 4.4% increase in EBIT before special
items for Q2 2024 compared to the same period last year. The division has further strengthened the network by establishing control towers
and expanding the European groupage network in close collaboration with the other divisions of the Group.
Solutions saw a gross profit increase of 8.1% and an increase in EBIT before special items of 6.8% for Q2 2024 compared to the same
period last year. Despite temporary low utilisation rates at new sites, the Solutions division delivered a strong performance owing to an
increase in order lines driven by new wins.
We are well positioned for growth in an ever-changing market and maintain our focus on having industry leading margins, which is a
testament to the company’s competitive culture and operational efficiency. M&A remains a core pillar in DSV, and we believe that the
combination of organic and inorganic growth will create a stronger DSV going forward.
We consistently assess our operations to optimise productivity and remain flexible and competitive to meet market demand, and we
continuously invest in digital and physical infrastructure that drives productivity up. In order to leverage on these investments, we have
launched a company-wide operational efficiency initiative in Q2. The gains from these initiatives are expected to materialise gradually over
the coming quarters starting in Q3 and with a full-year impact in 2025 in EBIT before special items of approximately DKK 750 million.
Outlook for 2024
Based on our performance in the first six months of 2024 and our expectations for the rest of the year, we are narrowing the full-year
outlook for 2024 as follows:
• EBIT before special items is expected to be in the range of DKK 15,500-17,000 million (previously DKK 15,000-17,000 million).
• The effective tax rate is expected to be approximately 24%.
• One-off costs (special items) are expected to be in the level of DKK 650 million in 2024.
Share buyback
A separate company announcement about a new share buyback programme of DKK 1,500 million will be issued today. The programme
starts 24 July 2024 and will run until 22 October 2024.
Contacts
Investor Relations: Sebastian Rosborg, tel. +45 43 20 33 87, sebastian.rosborg@dsv.com
Media contact: Jonatan Rying Larsen, tel. +45 25 41 77 37, press@dsv.com
Yours sincerely,
DSV A/S
Page 3 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Interim Financial Report
H1 2024
Keeping supply chains flowing in a world of change
Page 2 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Contents
Financial highlights ......................................................................................................................... 3
Management’s commentary ............................................................................................................ 4
Air & Sea ........................................................................................................................................... 9
Road ................................................................................................................................................ 12
Solutions ........................................................................................................................................ 14
Interim financial statements .......................................................................................................... 16
Notes to the interim financial statements .................................................................................... 21
Statement by the Board of Directors and the Executive Board .................................................. 23
Page 3 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Financial highlights
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Results (DKKm)
Revenue
41,157
37,727
79,497
78,681
Gross profit
10,841
11,331
21,106
22,722
Operating profit before amortisation and depreciation (EBITDA)
before special items
5,509
6,022
10,541
11,963
Operating profit (EBIT) before special items
4,099
4,705
7,740
9,377
Net financial expenses
521
172
1,005
518
Profit for the period
2,712
3,375
5,105
6,662
Adjusted earnings for the period
2,790
3,448
5,253
6,788
Cash flows (DKKm)
Operating activities
2,462
4,628
4,218
10,749
Investing activities
(128)
(1,097)
(486)
(1,494)
Free cash flow
2,334
3,531
3,732
9,255
Adjusted free cash flow
1,229
3,239
1,672
8,137
Share buyback
(915)
(4,211)
(2,528)
(7,230)
Dividends distributed
-
-
(1,533)
(1,424)
Cash flow for the period
2,411
(1,797)
2,530
(217)
Gross investment in property, plant and equipment
(422)
(589)
(983)
(997)
Financial position (DKKm)
DSV A/S shareholders’ share of equity
70,899
70,080
Non-controlling interests
269
236
Total equity
71,168
70,316
Total assets
157,775
151,540
Net working capital (NWC)
8,750
2,651
Net interest-bearing debt (NIBD)
38,199
30,350
Invested capital
105,735
97,019
Financial ratios (%)
Gross margin
26.3
30.0
26.5
28.9
Operating margin
10.0
12.5
9.7
11.9
Conversion ratio
37.8
41.5
36.7
41.3
Effective tax rate
24.2
25.5
24.2
24.8
ROIC before tax
15.9
20.4
Return on equity
15.3
19.9
Solvency ratio
44.9
46.2
Gearing ratio
1.8
1.2
Share ratios
Earnings per share (EPS) of DKK 1 for the last 12 months
51.3
67.4
Diluted adjusted earnings per share of DKK 1 for the last 12 months
52.7
69.8
Number of shares issued (’000) at 30 June
214,000
219,000
Number of treasury shares (’000) at 30 June
6,094
5,262
Average number of shares outstanding (’000) for the last 12 months
209,971
219,417
Average diluted number of shares (’000) for the last 12 months
210,804
221,520
Diluted number of shares (’000) at 30 June
208,037
215,528
Share price end of period (DKK)
1,067.0
1,433.0
Non-financial data
Full-time employees (FTE) at 30 June
73,881
74,178
For definition of key figures and ratios, please refer to page 82 of the DSV Annual Report 2023.
For definition of non-financial data, please refer to the DSV Sustainability Report 2023.
Page 4 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Management’s commentary
The DSV Group achieved strong Q2 2024 results in a competitive environment with a decline in gross
profit of 4.0% and a 12.4% decline in EBIT before special items compared to the same period last year.
The financial results reflect a strong performance in all three divisions with further market share gains
despite a competitive market. Sequentially, the Group achieved nominal gross profit growth of 5.6% and
12.6% nominal growth in EBIT before special items compared to Q1 2024.
Adjusted free cash flow for Q2 2024 and H1 2024 was impacted by the higher net working capital due to
increased activity and increasing sea freight rates.
Quarterly business highlights
In the beginning of 2024, we strengthened our operational and
commercial focus to enable sustainable organic growth. The
revised focus is driven by a deeper understanding and
collaboration with our customers across industry verticals as
well as further development and leveraging of our global
network and targeted services.
The strengthened commercial structure to support our largest
customers is off to a good start, receiving positive customer
feedback and securing significant wins within our targeted
verticals. At the same time, we have maintained our stronghold
in the small- and mid-sized customer segments.
We are pleased to note that the satisfaction ratings across our
customer base are at all-time high levels in all divisions.
M&A will remain central to DSV’s strategy, and we believe that
the combination of organic and inorganic growth will create a
stronger DSV going forward.
Operational excellence – benefitting from
strategic investments
DSV continuously invests in digital and physical infrastructure
that drives productivity up. In order to leverage on these
investments, we have launched a company-wide operational
efficiency initiative.
The impact of this initiative is expected to materialise gradually
in the coming quarters starting in Q3 with a full-year impact in
2025 in EBIT before special items of approximately DKK 750
million. One-off costs for this initiative are estimated to be
around DKK 650 million which will be reported as special items
in 2024.
NEOM update
The exclusive logistics joint venture to provide logistics services
for the projects in the NEOM region is mobilised and ready to go
live but is awaiting final approvals from local authorities.
The timing of investments in the joint venture will follow the
progress of the individual projects in NEOM. Based on current
plans, we expect the joint venture activities to ramp up over the
next 3-4 years.
The joint venture will have a positive impact on the DSV
network, and we expect a return on the invested capital in line
with our financial targets.
Page 5 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Results for the period
Growth 2023 – 2024
Revenue
In Q2 2024, revenue increased 9.6% compared to same period
last year. For H1 2024, revenue amounted to DKK 79,497
million, compared to DKK 78,681 million last year. Revenue
increased by 2.0% compared to same period last year.
Revenue and growth by division compared to same period last
year are specified below:
(DKKm)
Q2 2024
Growth*
YTD 2024
Growth*
Air & Sea
24,616
8.1%
47,332
(2.3%)
Road
10,561
9.1%
20,986
6.2%
Solutions
6,916
17.0%
12,905
12.3%
Group and
eliminations
(936)
(1,726)
Total
41,157
9.6%
79,497
2.0%
* Growth in constant currencies
For H1 2024, the Air & Sea revenue was positively impacted by
higher volume partly offset by lower average freight rates
compared to the same period last year, leading to a slight
decline in revenue for H1 2024.
The Road and Solutions divisions experienced revenue growth
in H1 2024 compared to the same period last year. Road was
primarily driven by higher volumes in our European groupage
network, though partially offset by lower market rates. The
Solutions division grew revenue primarily due to increased
number of order lines, new wins and further development of our
global footprint.
Revenue by division, H1 2024 (DKKm)
Gross profit
For Q2 2024, gross profit for the Group declined 4.0% compared
to same period last year. Gross profit increased sequentially and
was up by 5.6% nominally compared to Q1 2024.
For H1 2024, gross profit amounted to DKK 21,106 million,
compared to DKK 22,722 million last year. Gross profit declined
6.3% compared to the same period last year, mainly due to a
normalising freight market causing lower yields in the Air & Sea
division.
47,332
58%
20,986
26%
12,905
16%
Air & Sea
Road
Solutions
Ex. Group and
elimination
(DKKm)
Q2 2023
Currency
translation
Q2 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q2 2024
Revenue
37,727
(186)
37,541
3,616
9.6%
41,157
Gross profit
11,331
(42)
11,289
(448)
(4.0%)
10,841
EBIT before special items
4,705
(24)
4,681
(582)
(12.4%)
4,099
Gross margin (%)
30.0
26.3
Operating margin (%)
12.5
10.0
Conversion ratio (%)
41.5
37.8
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Revenue
78,681
(767)
77,914
1,583
2.0%
79,497
Gross profit
22,722
(200)
22,522
(1,416)
(6.3%)
21,106
EBIT before special items
9,377
(98)
9,279
(1,539)
(16.6%)
7,740
Gross margin (%)
28.9
26.5
Operating margin (%)
11.9
9.7
Conversion ratio (%)
41.3
36.7
Page 6 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Gross profit and growth by division compared to same period
last year are specified below:
(DKKm)
Q2 2024
Growth*
YTD 2024
Growth*
Air & Sea
6,072
(9.3%)
11,835
(12.8%)
Road
2,061
1.5%
4,025
0.4%
Solutions
2,576
8.1%
4,977
7.0%
Group and
eliminations
132
269
Total
10,841
(4.0%)
21,106
(6.3%)
* Growth in constant currencies
For H1 2024, gross profit for Air & Sea benefitted from the
continued volume improvement in both air and sea. However, as
expected, the gross profit for Air & Sea declined compared to
the same period last year due to the normalisation of gross profit
yields.
The Road division achieved slight gross profit growth in H1
2024, despite a challenging market. The division continued its
positive trajectory, particularly in the European groupage
network, and gained additional business with our large
customers. The growth in volumes is partly offset by reduced
freight rates.
Solutions delivered gross profit growth of 7.0% for H1 2024 due
to higher activity levels with existing customers and the
expansion of our global footprint paving the way for growth with
new customers.
Gross profit by division, H1 2024 (DKKm)
The gross margin for the Group was 26.5% for H1 2024,
compared to 28.9% for the same period last year. The decline
was mainly due to Air & Sea and reflects the continued
normalisation of both air and sea gross profit yields. In
Solutions, the gross margin was lower than last year as a
consequence of the implementation of new facilities following
our warehouse strategy to increase our global footprint.
EBIT before special items
For Q2 2024, EBIT before special items declined 12.4%
compared to last year but increased nominally by 12.6%
compared to the first quarter. The reduced EBIT was due to
lower gross profit in the Air & Sea division.
EBIT before special items amounted to DKK 7,740 million for H1
2024, compared to DKK 9,377 million last year. EBIT before
special items was down 16.6%.
EBIT and growth by division compared to same period last year
are specified below:
(DKKm)
Q2 2024
Growth*
YTD 2024
Growth*
Air & Sea
2,898
(18.2%)
5,525
(22.1%)
Road
549
4.4%
1,039
1.4%
Solutions
661
6.8%
1,161
(0.5%)
Group and
eliminations
(9)
15
Total
4,099
(12.4%)
7,740
(16.6%)
* Growth in constant currencies
The conversion ratio for the Group was 36.7% for H1 2024,
compared to 41.3% for the same period last year. The decline is
primarily due to the normalisation of freight markets and lower
gross profit yields in Air & Sea. In Solutions, we see a temporary
lower average warehouse utilisation as a result of the expansion
of warehouse infrastructure.
For H1 2024, our continued focus on cost management resulted
in a stable cost base despite cost of growth compared to the
same period last year. Changes to the operational set-up has
been made to improve efficiency and enable productivity gains.
New group-wide initiatives have been initiated during the quarter
to leverage on previous investments in improved digitalisation,
standardised services, and new terminals and warehouses. This
will reduce both staff cost and other external cost and improve
the conversion ratio.
From a regional perspective, all regions realised lower EBIT for
H1 2024 compared to the same period last year. The best
performing region compared to the same period last year was
EMEA.
EBIT by division, H1 2024 (DKKm)
11,835
57%
4,025
19%
4,977
24%
Air & Sea
Road
Solutions
Ex. Group and
elimination
5,525
72%
1,039
13%
1,161
15%
Air & Sea
Road
Solutions
Ex. Group and
elimination
Page 7 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Financial items
Financial items totalled a net expense of DKK 1,005 million for
H1 2024, compared to a net expense of DKK 518 million for the
same period last year. The higher net financial expenses
compared to last year were related to the increase in lease
liabilities, less financial income due to lower cash balances and
foreign exchange losses, especially on intercompany balances.
(DKKm)
YTD 2024
YTD 2023
Interest on lease liabilities
530
400
Other interest cost, net
327
162
Interest on pensions
22
18
Foreign exchange adjustments
126
(62)
Net financial expenses
1,005
518
Tax on profit for the period
The effective tax rate came to 24.2% for H1 2024, compared to
24.8% for the same period last year.
Profit for the period
Profit for H1 2024 was DKK 5,105 million, compared to DKK
6,662 million for the same period of 2023. The decline was
mainly due to the lower EBIT before special items for the period.
Diluted adjusted earnings per share
Diluted adjusted EPS (rolling 12-months) decreased by 24.5%
compared to the same period last year and came to DKK 52.7
per share (30 June 2023: DKK 69.8 per share). The decline was
due to the decrease in adjusted earnings partly offset by a 4.8%
decrease in average number of diluted shares outstanding
following the Group’s share buyback programmes.
Cash flow
Cash flow statement – summary
(DKKm)
Q2
2024
Q2
2023
YTD
2024
YTD
2023
EBITDA before special items
5,509
6,022
10,541
11,963
Change in net working capital
(1,681)
551
(3,773)
2,540
Tax, interests, change in
provisions, etc.
(1,366)
(1,814)
(2,550)
(3,491)
Special items, paid
-
(131)
-
(263)
Cash flow from operating
activities
2,462
4,628
4,218
10,749
Cash flow from investing
activities
(128)
(1,097)
(486)
(1,494)
Free cash flow
2,334
3,531
3,732
9,255
Proceeds and repayment of
debt
973
(1,568)
2,278
(2,152)
Transactions with shareholders
(896)
(3,760)
(3,480)
(7,320)
Cash flow for the period
2,411
(1,797)
2,530
(217)
Free cash flow
2,334
3,531
3,732
9,255
Acquisition of subsidiaries
-
550
-
550
Special items
-
131
-
263
Repayment of lease liabilities
(1,105)
(973)
(2,060)
(1,931)
Adjusted free cash flow
1,229
3,239
1,672
8,137
Adjusted free cash flow for Q2 2024 amounted to DKK 1,229
million, a decrease of DKK 2,010 million compared to same
quarter last year. For H1 2024, the adjusted free cash flow was
DKK 1,672 million, compared DKK 8,137 million for the same
period last year.
The decline in adjusted free cash flow for both Q2 2024 and for
H1 2024 was predominantly impacted by higher net working
capital and lower EBITDA but partly offset by lower tax
payments and a reduction in investing activities.
The change in net working capital increased during Q2 2024
owing to higher activity levels which led to higher net revenue
compared to Q2 2023.
For H1 2024, the change in net working capital resulted in a
cash outflow of DKK 3,773 million compared to an inflow last
year of DKK 2,540 million due to the same factors as for the
quarter. The change in net working capital was a result of a
more normalised market, whereas the first six months of 2023
were impacted positively by the market conditions with high
rates from 2022.
Cash flow from investing activities only showed a cash outflow
of DKK 128 million for Q2 2024 compared to a cash outflow of
DKK 1,097 million for the same period last year. For the first six
months, cash flow from investing activities showed a cash
outflow of DKK 486 million, compared to a cash outflow of DKK
1,494 million for H1 2023. The decrease is related to the
disposal of properties and no material acquisitions in 2024.
Cash flow from financing activities was a net cash inflow of DKK
77 million for Q2 2024 and a cash outflow of DKK 1,202 million
for H1 2024, primarily related to shareholder distribution and
lease payments but partly offset by the issuance of the EUR 500
million Eurobond in Q2 2024.
Net working capital
On 30 June 2024, the Group’s net working capital (NWC) was
DKK 8,750 million, compared to DKK 2,651 million on 30 June
2023. The increase is mainly driven by higher activity levels in
combination with increasing freight rates, primarily in Air & Sea
in the second quarter of 2024.
Funds tied up in property projects increased compared to last
year. The impact from property projects is expected to decrease
over the coming quarters and the NWC to be reduced by
approximately DKK 2,000 million by year-end 2024.
Relative to estimated full-year revenue, funds tied up in NWC
were 5.3% as of 30 June 2024 (compared to 1.8% on 30 June
2023). We remain committed to managing the NWC and have
not seen changes to invoicing days or overdue receivables.
Capital structure and finances
DSV A/S shareholders’ share of equity
DSV shareholders’ share of equity was DKK 70,899 million on
30 June 2024 (DKK 68,703 million on 31 December 2023).
Equity increased as the profit for the period exceeded the
redistribution to shareholders (share buyback and dividend).
Page 8 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
On 30 June 2024, the Company’s portfolio of treasury shares
was 6,094,444 shares. On 23 July 2024, the portfolio of treasury
shares was 6,184,944 shares.
The solvency ratio excluding non-controlling interests was
44.9% on 30 June 2024 (30 June 2023: 46.2%).
The development in equity since 1 January is specified below:
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 38,199 million on 30
June 2024, compared to DKK 30,350 million on 30 June 2023.
The increase in net interest-bearing debt can mainly be
attributed to increases in lease liabilities, dividend, share
buyback payments to our shareholders and increased funds tied
up in net working capital.
On 26 June 2024, it was announced that DSV had completed a
new 5-year EUR 500 million Eurobond issue (approximately
DKK 3,725 million). Please refer to Company Announcement
No. 1118.
The gearing ratio (NIBD/EBITDA) was 1.8x on 30 June 2024,
compared to 1.2x last year. A new share buyback programme of
DKK 1,500 million is initiated on 24 July 2024 in accordance with
our target of a financial gearing ratio below 2.0 and expected
future cash flow as we expect to tie up additional funds in NWC
due to increasing rate levels.
The weighted average duration of the company’s long-term
bonds and drawn credit facilities was 6.9 years on 30 June
2024.
Invested capital and ROIC
The invested capital including goodwill and customer
relationships amounted to DKK 105,735 million on 30 June
2024, compared to DKK 97,019 million on 30 June 2023. The
increase was mainly a result of higher net working capital and
right-of-use lease assets.
Return on invested capital (including goodwill and customer
relationships) was 15.9% for the rolling 12-month period ended
30 June 2024 compared to 20.4% last year. The decrease is
predominantly due to the lower operational result.
Excluding goodwill and customer relationships, return on
invested capital was 64.4% for the rolling 12-month period
ended 30 June 2024, compared to 87.2% for the same period
last year.
Outlook
Based on our performance in the first six months of 2024 and
our expectations for rest of the year, we narrow the full-year
outlook for 2024 as follows:
• EBIT before special items is expected to be in the
range of DKK 15,500-17,000 million (previously DKK
15,000-17,000 million).
• The effective tax rate is expected to be approximately
24%.
• One-off costs (special items) are expected to be in the
level of DKK 650 million in 2024.
(DKKm)
YTD 2024
YTD 2023
Equity at 1 January
68,703
71,519
Profit for the period (attributable to
DSV shareholders)
5,076
6,628
Currency translation, foreign
enterprises
342
(1,252)
Allocated to shareholders
(4,061)
(8,654)
Sale of treasury shares
537
1,339
Other equity movements
302
500
Equity end of period
70,899
70,080
Page 9 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Air & Sea
The Air & Sea division operates a global network specialising in transportation of cargo by air and sea.
The division offers conventional freight forwarding services and tailored project cargo solutions.
In a market characterised by freight rate volatility and increasing volumes, the division saw a 9.3%
decrease in gross profit and a 18.2% decrease in EBIT before special items for Q2 2024 compared to the
same period last year. Compared to H1 last year, the gross profit yields have normalised and remained
relatively stable throughout H1 2024. There has been no significant financial impact from the situation in
the Red Sea, and we estimate that the division has gained market share.
Statement of profit or loss
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Divisional revenue
24,616
22,993
47,332
49,206
Direct costs
18,544
16,239
35,497
35,425
Gross profit
6,072
6,754
11,835
13,781
Other external costs
890
883
1,798
1,906
Staff costs
1,994
2,005
3,937
4,098
EBITDA before special items
3,188
3,866
6,100
7,777
Amortisation and depreciation
290
292
575
577
EBIT before special items
2,898
3,574
5,525
7,200
Key figures and ratios
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Gross margin (%)
24.7
29.4
25.0
28.0
Operating margin (%)
11.8
15.5
11.7
14.6
Conversion ratio (%)
47.7
52.9
46.7
52.2
Full-time employees
21,170
21,695
Total invested capital (DKKm)
65,257
64,163
Net working capital (DKKm)
3,258
1,080
ROIC before tax (%)
18.1
23.8
Quarterly business highlights
The commercial strategy continued to see positive traction in our
pipeline of opportunities and dialogues with customers, and we
expect the results of the positive developments to materialise
across all customer segments over the coming quarters.
In addition, we have moved forward with the expansion of our
global network, continuing the optimisation of our European and
American air routings and development of the air gateway
infrastructure. For our LCL sea freight product, we have
increased our own controlled consolidation. We continue to see
greater collaboration internally between the divisions, thereby
strengthening our comprehensive end-to-end services for our
customers.
Market development
DSV volume growth
Q2 2024
YTD 2024
Air freight – tonnes
10%
6%
Sea freight – TEUs
4%
6%
Air
The global air freight market was impacted by high growth in the
e-commerce segment, especially on China export volumes. This
tied up a significant part of the available capacity and kept rates
elevated, particularly for air freight out of APAC. On other trade
lanes, available capacity increased due to more passenger
travel and airlines’ summer schedules.
Page 10 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Adjusted for e-commerce and perishables, we estimate that our
addressable market grew by mid-single digits in Q2 2024.
DSV’s air freight volumes grew by 10% in Q2 2024 and by 6% in
H1 2024 compared to the same period last year. The increase
was mainly driven by improved export from APAC, which was
positively impacted by growing textile and pharma customer
volumes out of China and sea-to-air conversion in the Indian
sub-continent. We estimate that we have grown faster than our
addressable market on air freight.
Sea
The continued rerouting of ships around the Cape of Good Hope
in response to the Red Sea situation kept freight rates at an
elevated level during the quarter. In the second half of Q2, a
combination of early summer peak, increasing port congestion,
void sailing programmes and longer transit times resulted in an
additional increase in freight rates, especially on the Asia-
Europe trade lane, but also impacting other head haul trades.
We estimate that the market grew by mid-single digits in Q2
2024.
DSV’s sea freight volumes grew by 4% during Q2 2024 and by
6% in the first half of 2024 compared to the same period last
year. We estimate that we have grown in line with the sea freight
market. The strongest growth rates continued to be recorded on
export volumes out of APAC.
Divisional revenue
For Q2 2024, revenue amounted to DKK 24,616 million,
compared to DKK 22,993 million for the same period last year.
Revenue for the quarter was up 8.1% compared to the same
period last year due to increased activity and sea freight rates.
The division’s revenue amounted to DKK 47,332 million for H1
2024, compared to DKK 49,206 million for the same period last
year, and was down 2.3%.
Compared to the same period last year, air and sea volumes
grew in H1 2024 and continued to be positively impacted by the
increase in demand across both air and sea freight.
Gross profit
For Q2 2024, gross profit amounted to DKK 6,072 million,
compared to DKK 6,754 million for the same period last year.
Gross profit for the quarter was down 9.3%. The decline in gross
profit compared to last year was caused by lower gross profit
yields in both air and sea. Yields remained relatively stable in
Q2 2024 compared to Q1 2024, and in combination with the
increased activity, gross profit increased nominally by 5.4% from
the first quarter.
For the first six months of 2024, gross profit amounted to DKK
11,835 million, compared to DKK 13,781 million for the same
period last year. Gross profit decreased by 12.8%.
We expect that the current market situation around the Red Sea
will have a slightly positive impact on the gross profit in H2 2024.
The division’s gross margin was 25.0% for H1 2024, compared
to 28.0% last year. The decrease was driven by higher volume
but offset by lower yields compared to same period last year.
EBIT before special items
For Q2 2024, EBIT before special items amounted to DKK 2,898
million, compared to DKK 3,574 million for the same period last
year. EBIT before special items for the quarter was down 18.2%.
The decline in EBIT before special items is a consequence of
the lower gross profit, which was partially offset by a reduced
cost base compared to last year. Due to strong cost
management by the division, cost related to both staff and other
external cost was reduced compared to same period last year.
Sequentially, the division delivered nominal EBIT growth of
10.3% from Q1 2024 to Q2 2024 due to high activity levels and
stable gross profit yields.
EBIT before special items came to DKK 5,525 million for the first
six months of 2024, compared to DKK 7,200 million for the same
period last year. EBIT before special items declined 22.1%.
The conversion ratio was 46.7% for H1 2024, compared to
52.2% for the same period last year. The reduced conversion
ratio is primarily due to lower gross profit.
Productivity, measured as shipments per white collar FTE,
increased by 18% compared to H1 2023, thus continuing the
sequential improvement from previous quarters.
Net working capital
The Air & Sea division’s net working capital came to DKK 3,258
million on 30 June 2024, compared to DKK 1,080 million on 30
June 2023. The increase in net working capital is driven by
higher activity and sequential increase in sea freight rates during
the period.
Page 11 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Growth Air & Sea 2023 – 2024
(DKKm)
Q2 2023
Currency
translation
Q2 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q2 2024
Divisional revenue
22,993
(226)
22,767
1,849
8.1%
24,616
Gross profit
6,754
(56)
6,698
(626)
(9.3%)
6,072
EBIT before special items
3,574
(30)
3,544
(646)
(18.2%)
2,898
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Divisional revenue
49,206
(768)
48,438
(1,106)
(2.3%)
47,332
Gross profit
13,781
(202)
13,579
(1,744)
(12.8%)
11,835
EBIT before special items
7,200
(108)
7,092
(1,567)
(22.1%)
5,525
Air & Sea freight performance
Air freight
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Divisional revenue
13,365
12,166
25,532
26,431
Direct costs
10,412
8,592
19,684
19,130
Gross profit
2,953
3,574
5,848
7,301
Gross margin (%)
22.1
29.4
22.9
27.6
Volume (tonnes)*
349,076
316,456
684,289
644,168
Gross profit per unit (DKK)
8,459
11,294
8,546
11,334
Sea freight
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Divisional revenue
11,251
10,827
21,800
22,775
Direct costs
8,132
7,647
15,813
16,295
Gross profit
3,119
3,180
5,987
6,480
Gross margin (%)
27.7
29.4
27.5
28.5
Volume (TEUs)*
666,310
641,924
1,302,854
1,230,131
Gross profit per unit (DKK)
4,681
4,954
4,595
5,268
* Volume is defined as the quantity of export cargo processed within DSV network. Sea volume is
measured in TEUs (twenty-foot equivalent units), while air volume is determined by chargeable weight,
quantified in tonnes.
Page 12 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Road
The Road division is one of the market leaders in Europe and has operations in North America, South
Africa and in the Middle East. The division offers full load, part load and groupage services through a
network of more than 280 terminals.
The division saw a stable gross profit and a 4.4% increase in EBIT before special items for Q2 2024
compared to the same period last year. In a competitive market with pressure on the freight rates due to
low demand and overcapacity, the Road division achieved strong results. We estimate that the division
gained market share, especially on European groupage shipments.
Statement of profit or loss
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Divisional revenue
10,561
9,650
20,986
19,744
Direct costs
8,500
7,627
16,961
15,745
Gross profit
2,061
2,023
4,025
3,999
Other external costs
319
367
643
730
Staff costs
963
918
1,900
1,820
EBITDA before special items
779
738
1,482
1,449
Amortisation and depreciation
230
213
443
429
EBIT before special items
549
525
1,039
1,020
Key figures and ratios
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Gross margin (%)
19.5
21.0
19.2
20.3
Operating margin (%)
5.2
5.4
5.0
5.2
Conversion ratio (%)
26.6
26.0
25.8
25.5
Full-time employees
16,608
16,234
Total invested capital (DKKm)
13,259
11,529
Net working capital (DKKm)
1,504
439
ROIC before tax (%)
16.4
17.8
Quarterly business highlights
In Q2 2024, our commercial efforts showed promising results,
with volume awards across our European groupage network.
We also continued onboarding customers and further
streamlining our pan-European control tower set-up to deliver
even better services to all our customers.
In addition, we have further strengthened the commercial
collaboration across the three divisions. The operational
interaction is in its first phase across Road and Air & Sea,
supporting our efforts to continue to deliver sustainable above
market growth.
Market development
As a result of low demand and continued overcapacity in the
market, the division saw lower freight rates across most of
Europe in H1 2024 compared to last year. Despite a challenging
market, the division registered a positive development and
gained market share, especially because of our strong
international network.
Divisional revenue
For Q2 2024, revenue amounted to DKK 10,561 million,
compared to DKK 9,650 million for the same period last year.
Revenue for the quarter was up 9.1%. The increase in revenue
for the quarter was driven by continued volume growth in our
Page 13 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
European groupage network and with larger customers, partly
offset by lower market rates.
The division’s revenue amounted to DKK 20,986 million for the
first six months of 2024, compared to DKK 19,744 million for the
same period last year. Revenue for the first six months was up
6.2%.
The division generates more than 85% of its revenue in Europe
and continues to see good performance across most countries
in the region.
Gross profit
For Q2 2024, gross profit amounted to DKK 2,061 million,
compared to DKK 2,023 million for the same period last year.
Gross profit for the quarter was up 1.5%.
For the first six months of 2024, gross profit totalled DKK 4,025
million, which was on level with the same period last year.
The division’s gross margin was 19.2% for H1 2024, compared
to 20.3% for the same period in 2023. The margin is impacted
by the current overcapacity in the market and is expected to
improve as demand increases.
The division maintains its focus on developing the control tower
setup and European groupage network, which is expected to
positively impact the gross margin over time.
EBIT before special items
For Q2 2024, EBIT before special items amounted to DKK 549
million, compared to DKK 525 million for the same period last
year. EBIT before special items for the quarter was up 4.4%.
The increase was a result of the improved gross profit and
stable cost base.
EBIT before special items was DKK 1,039 million for the first six
months of 2024, compared to DKK 1,020 million for the same
period last year. EBIT before special items for H1 2024 was up
1.4%. The division delivered a satisfactory performance in a
challenging market.
The conversion ratio was 25.8% for H1 2024, compared to
25.5% for the same period last year. The conversion ratio was
positively impacted by increased gross profit, partly offset by a
one-off implementation cost on a large contract. The division
continues to focus on cost management and productivity gains.
Net working capital
The Road division’s net working capital was DKK 1,504 million
on 30 June 2024, compared to DKK 439 million on 30 June
2023. The development compared to last year was impacted by
an increase in funds tied up in property projects.
Growth Road 2023 - 2024
(DKKm)
Q2 2023
Currency
translation
Q2 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q2 2024
Divisional revenue
9,650
28
9,678
883
9.1%
10,561
Gross profit
2,023
7
2,030
31
1.5%
2,061
EBIT before special items
525
1
526
23
4.4%
549
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Divisional revenue
19,744
24
19,768
1,218
6.2%
20,986
Gross profit
3,999
9
4,008
17
0.4%
4,025
EBIT before special items
1,020
5
1,025
14
1.4%
1,039
Page 14 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Solutions
The Solutions division offers warehousing and logistics services globally and controls more than 500
logistics facilities. The service portfolio includes freight management, customs clearance, order
management and e-commerce solutions.
The Solutions division delivered a strong performance and reported a gross profit increase of 8.1% and an
increase of 6.8% in EBIT before special items for Q2 2024 compared to the same period last year. We
believe that the division has gained market share during H1 2024.
Statement of profit or loss
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Divisional revenue
6,916
5,898
12,905
11,523
Direct costs
4,340
3,525
7,928
6,865
Gross profit
2,576
2,373
4,977
4,658
Other external costs
448
420
885
873
Staff costs
658
613
1,308
1,201
EBITDA before special items
1,470
1,340
2,784
2,584
Amortisation and depreciation
809
727
1,623
1,423
EBIT before special items
661
613
1,161
1,161
Key figures and ratios
Quarterly business highlights
In Q2 2024, we continued executing on our long-term strategy of
consolidating and developing multi-client warehouse campuses
based on regional roadmaps. In Q2 2024, we have added new
warehouse space, predominantly in Sweden and North America.
While these efforts have resulted in continued above-market
growth, there is a ramp-up period for new warehouses.
As part of DSV’s overall commercial strategy, we continue to
develop our vertical expertise and aligning our services globally
in pursuit of global customers. In Q2 2024, we saw a positive
development in cross-divisional collaboration with our largest
customers and overall increased customer satisfaction rates
across all customer segments.
Market development
In H1 2024, the demand for contract logistics services was
slightly higher than the same period last year. The market is still
characterised by low inventory levels, but we are starting to see
increased activity and signs of improvement, and we estimate
that the division gained market share.
Divisional revenue
For Q2 2024, revenue amounted to DKK 6,916 million,
compared to DKK 5,898 million for the same period last year.
Revenue for the quarter was up 17.0%. The increase in revenue
for the quarter was primarily due to increased activity within the
technology, automotive and healthcare verticals. The division
also saw an increase in order lines driven by new wins. The
Americas and EMEA regions delivered the strongest
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Gross margin (%)
37.2
40.2
38.6
40.4
Operating margin (%)
9.6
10.4
9.0
10.1
Conversion ratio (%)
25.7
25.8
23.3
24.9
Full-time employees
31,614
31,736
Total invested capital (DKKm)
28,226
23,995
Net working capital (DKKm)
4,071
2,350
ROIC before tax (%)
9.0
10.0
Page 15 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
performance during the quarter.
The division’s revenue was DKK 12,905 million for the first six
months of 2024, compared to DKK 11,523 million for the same
period of 2023. Revenue increased 12.3% for the first six
months.
Gross profit
For Q2 2024, gross profit amounted to DKK 2,576 million,
compared to DKK 2,373 million for the same period last year.
Gross profit for the quarter was up 8.1%.
For the first six months of 2024, gross profit was DKK 4,977
million, compared to DKK 4,658 million for the same period of
2023. Gross profit was up by 7.0%.
The division’s gross margin was 38.6% for H1 2024, compared
to 40.4% for the same period last year. We have seen an
expected temporary decline in gross margin as we continue to
execute on our strategy of developing multi-client warehouse
campuses with a high degree of automation.
EBIT before special items
For Q2 2024, EBIT before special items amounted to DKK 661
million, compared to DKK 613 million for the same period last
year. EBIT before special items for the quarter was up 6.8% as
a result of increased activity with existing customers and
warehouse expansions.
EBIT before special items was DKK 1,161 million for the first six
months of 2024, compared to DKK 1,161 million for the same
period of 2023. EBIT before special items was on level with last
year.
The conversion ratio was 23.3% for H1 2024, compared to
24.9% for the same period last year. In the first half of 2024, the
cost base was impacted by higher depreciations due to the
addition of new warehouses. The expected decline in
conversion ratio was due to newly opened warehouses with
lower utilisation in the ramp-up phase. The existing warehouse
capacity continues to operate with a high conversion ratio.
Net working capital
The division’s net working capital came to DKK 4,071 million on
30 June 2024, compared to DKK 2,350 million on 30 June 2023.
The development was mainly impacted by an increase in funds
tied up in property projects supporting our roadmap for
expanding our global footprint.
Growth Solutions 2023 – 2024
(DKKm)
Q2 2023
Currency
translation
Q2 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q2 2024
Divisional revenue
5,898
12
5,910
1,006
17.0%
6,916
Gross profit
2,373
10
2,383
193
8.1%
2,576
EBIT before special items
613
6
619
42
6.8%
661
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Divisional revenue
11,523
(32)
11,491
1,414
12.3%
12,905
Gross profit
4,658
(5)
4,653
324
7.0%
4,977
EBIT before special items
1,161
6
1,167
(6)
(0.5%)
1,161
Page 16 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Interim financial statements
Statement of profit or loss
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Revenue
79,497
78,681
Direct costs
58,391
55,959
Gross profit
21,106
22,722
Other external costs
2,286
2,575
Staff costs
8,279
8,184
Operating profit before amortisation and depreciation (EBITDA) before special
items
10,541
11,963
Amortisation and depreciation
2,801
2,586
Operating profit (EBIT) before special items
7,740
9,377
Financial income
62
259
Financial expenses
1,067
777
Profit before tax
6,735
8,859
Tax on profit for the period
1,630
2,197
Profit for the period
5,105
6,662
Profit for the period attributable to:
Shareholders of DSV A/S
5,076
6,628
Non-controlling interests
29
34
Earnings per share:
Earnings per share of DKK 1 for the period
24.3
30.7
Diluted earnings per share of DKK 1 for the period
24.3
30.4
Page 17 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Statement of comprehensive income
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Profit for the period
5,105
6,662
Items that may be reclassified to profit or loss when certain conditions are
met:
Net foreign exchange differences recognised in OCI
(351 )
351
(1,252)
Fair value adjustments of hedging instruments
(6 )
(6 )
(3)
(8)
Fair value adjustments of hedging instruments transferred to financial
expenses
1
3
Tax on items reclassified to profit or loss
(1)
2
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses)
143
110
Tax on items that will not be reclassified
(19 )
(48 )
(33)
(32)
Other comprehensive income, net of tax
(208 )
458
(1,177)
Total comprehensive income
5,563
5,485
Total comprehensive income attributable to:
Shareholders of DSV A/S
5,525
5,451
Non-controlling interests
38
34
Total
5,563
5,485
Page 18 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Statement of cash flows
(DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Operating profit before amortisation and depreciation (EBITDA)
before special items
10,541
11,963
Adjustments:
Share-based payments
163
124
Change in provisions
(96 )
(103)
8
Change in working capital
(1,681 )
(3,773)
2,540
Special items, paid
(131 )
-
(263)
Interest received
62
259
Interest paid, lease liabilities
(278 )
(205 )
(530)
(400)
Interest paid, other
(228 )
(240 )
(465)
(438)
Income tax paid
(888 )
(1,623 )
(1,677)
(3,044)
Cash flow from operating activities
4,218
10,749
Purchase of intangible assets
(118 )
(113 )
(198)
(203)
Purchase of property, plant and equipment
(422 )
(589 )
(983)
(997)
Disposal of property, plant and equipment
677
245
Acquisition of subsidiaries and activities
(550 )
-
(550)
Change in other financial assets
(75 )
18
11
Cash flow from investing activities
(128 )
(1,097 )
(486)
(1,494)
Free cash flow
3,732
9,255
Proceeds from borrowings
(338 )
4,423
86
Repayment of borrowings
(53 )
(309 )
(117)
(356)
Repayment of lease liabilities
(1,105 )
(973 )
(2,060)
(1,931)
Other financial liabilities incurred
32
49
Transactions with shareholders:
Dividends distributed to shareholders of DSV A/S
(1,533)
(1,424)
Purchase of treasury shares
(915 )
(4,211 )
(2,528)
(7,230)
Sale of treasury shares
537
1,339
Other transactions with shareholders and non-controlling interests
(26 )
44
(5)
Cash flow from financing activities
(5,328 )
(1,202)
(9,472)
Cash flow for the period
(1,797 )
2,530
(217)
Cash and cash equivalents 1 January
6,452
10,160
Cash flow for the period
(1,797 )
2,530
(217)
Currency translation
(32 )
(47)
(90)
Cash and cash equivalents end of period
8,935
9,853
The statement of cash flows cannot be directly derived from the statement of financial position and statement of profit or loss.
Statement of adjusted free cash flow (DKKm)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Free cash flow
3,732
9,255
Acquisition of subsidiaries and activities
-
550
Special items
-
263
Repayment of lease liabilities
(1,105 )
(973 )
(2,060)
(1,931)
Adjusted free cash flow
1,672
8,137
Page 19 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Statement of financial position
Assets (DKKm)
30.06.2024
31.12.2023
30.06.2023
Intangible assets
Right-of-use assets
Property, plant and equipment
Other receivables
Deferred tax assets
Total non-current assets
Trade receivables
Contract assets
Inventories
Other receivables
Cash and cash equivalents
Assets held for sale
Total current assets
Total assets
Equity and liabilities (DKKm)
30.06.2024
31.12.2023
30.06.2023
Share capital
Reserves
(375 )
(718 )
(344 )
Retained earnings
DSV A/S shareholders’ share of equity
Non-controlling interests
Total equity
Lease liabilities
Borrowings
Pensions and other post-employment benefit plans
Provisions
Deferred tax liabilities
Total non-current liabilities
Lease liabilities
Borrowings
Trade payables
Accrued cost of services
Provisions
Other payables
Tax payables
Total current liabilities
Total liabilities
Total equity and liabilities
Page 20 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Statement of changes in equity at 30 June 2024
Attributable to shareholders of DSV A/S
(DKKm)
Share
capital
Reserves
Retained
earnings
Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2024
(718 )
Profit for the period
Other comprehensive income, net of tax
Total comprehensive income for the period
Transactions with shareholders and
non-controlling interests:
Share-based payments
Tax on share-based payments
(44 )
(44 )
(44 )
Dividends distributed
(1,533 )
(1,533 )
(23 )
(1,556 )
Purchase of treasury shares
(2 )
(2,526 )
(2,528 )
(2,528 )
Sale of treasury shares
Capital reduction
(5 )
Dividends on treasury shares
Other adjustments
-
-
(9 )
(8 )
Total equity transactions
(5 )
(3,328 )
(3,329 )
(32 )
(3,361 )
Equity at 30 June 2024
(375 )
Statement of changes in equity at 30 June 2023
Attributable to shareholders of DSV A/S
(DKKm)
Share
capital
Reserves
Retained
earnings
Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2023
Profit for the period
Other comprehensive income, net of tax
(1,260 )
(1,177 )
(1,177 )
Total comprehensive income for the period
(1,260 )
Transactions with shareholders and
non-controlling interests:
Share-based payments
Tax on share-based payments
Dividends distributed
(1,424 )
(1,424 )
(25 )
(1,449 )
Purchase of treasury shares
(6 )
(7,224 )
(7,230 )
(7,230 )
Sale of treasury shares
Dividends on treasury shares
Other adjustments
(4 )
(4 )
Total equity transactions
(3 )
(6,887 )
(6,890 )
(20 )
(6,910 )
Equity at 30 June 2023
(344 )
Page 21 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Notes to the interim financial
statements
1 Material accounting policy information
This Interim Financial Report has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as adopted by the
European Union and additional disclosure requirements for
listed companies under the Danish Financial Statements Act.
Material accounting policies applied in preparing the Interim
Financial Report are consistent with those applied in preparing
the DSV Annual Report 2023. The DSV Annual Report 2023
provides a full description of the Group’s accounting policies.
Changes in accounting policies
The DSV Group has implemented amendments to the IFRS
Accounting Standards effective as of 1 January 2024 as
adopted by the European Union.
None of the amendments implemented have had any material
impact on the Group’s financial statements, nor are they
expected to have so in the foreseeable future.
2 Management judgements and
estimates
In preparing the interim financial statements, Management
makes various accounting judgements and estimates that affect
the reported amounts and disclosures in the financial statements
and in the notes to the statements. These are based on
professional experience, historical data and other factors
available to Management.
By nature, a degree of uncertainty is involved when carrying
out these judgements and estimates, hence actual results
may deviate from the assessments made at the reporting
date. Judgements and estimates are continuously evaluated,
and the effects of any changes are recognised in the
relevant period.
Primary financial statement items in which more significant
accounting judgements and estimates are applied are listed in
Chapter 1 of the Notes to the 2023 DSV Annual Report to which
is referred.
3 New accounting regulations
The IASB has issued a number of new standards and
amendments not yet in effect or adopted by the EU and
therefore not relevant for the preparation of the H1 2024 Interim
Financial Report.
4 Segment information – divisions
Air & Sea
Road
Solutions
Non-allocated items
and eliminations
Total
(DKKm)
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
Condensed statement of profit or loss
Revenue
47,058
48,915
19,602
18,405
12,611
11,151
226
210
79,497
78,681
Intersegment revenue
274
291
1,384
1,339
294
372
(1,952)
(2,002)
-
-
Divisional revenue
47,332
49,206
20,986
19,744
12,905
11,523
(1,726)
(1,792)
79,497
78,681
Direct costs
35,497
35,425
16,961
15,745
7,928
6,865
(1,995)
(2,076)
58,391
55,959
Gross profit
11,835
13,781
4,025
3,999
4,977
4,658
269
284
21,106
22,722
Other external expenses
1,798
1,906
643
730
885
873
(1,040)
(934)
2,286
2,575
Staff costs
3,937
4,098
1,900
1,820
1,308
1,201
1,134
1,065
8,279
8,184
Operating profit before amortisation,
depreciation (EBITDA) before special
items
6,100
7,777
1,482
1,449
2,784
2,584
175
153
10,541
11,963
Amortisation and depreciation
575
577
443
429
1,623
1,423
160
157
2,801
2,586
Operating profit (EBIT) before special
items
5,525
7,200
1,039
1,020
1,161
1,161
15
(4)
7,740
9,377
Condensed statement of financial position
Total assets
80,784
85,715
27,300
24,594
35,861
30,840
13,830
10,391
157,775
151,540
Total liabilities
51,971
58,360
21,282
18,106
29,359
24,174
(16,005)
(19,416)
86,607
81,224
* Reference is made to the statement of profit or loss for reconciliation of operating profit (EBIT) before special items to profit for the period.
Page 22 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
5 Revenue
EMEA
Americas
APAC
Total
Services and geographical segmentation of revenue
(DKKm)
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Air services
5,184
5,117
3,599
3,723
4,582
3,326
13,365
12,166
Sea services
5,445
5,354
3,715
3,525
2,091
1,948
11,251
10,827
Road services
9,573
8,750
988
900
-
-
10,561
9,650
Solutions services
4,911
3,898
1,211
1,181
794
819
6,916
5,898
Total
25,113
23,119
9,513
9,329
7,467
6,093
42,093
38,541
Non-allocated items and eliminations
(936)
(814)
Total revenue
41,157
37,727
EMEA
Americas
APAC
Total
Services and geographical segmentation of revenue
(DKKm)
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
Air services
10,237
10,957
7,015
8,167
8,280
7,307
25,532
26,431
Sea services
10,732
11,225
7,120
7,541
3,948
4,009
21,800
22,775
Road services
19,126
17,940
1,860
1,804
-
-
20,986
19,744
Solutions services
8,917
7,542
2,407
2,328
1,581
1,653
12,905
11,523
Total
49,012
47,664
18,402
19,840
13,809
12,969
81,223
80,473
Non-allocated items and eliminations
(1,726)
(1,792)
Total revenue
79,497
78,681
6 Financial instruments – fair value hierarchy
Derivative financial instruments
DSV has no financial instruments measured at fair value based
on level 1 input (quoted active market prices) or level 3 input
(non-observable market data). Derivative financial instruments
are measured based on level 2 input (input other than quoted
prices that are observable either directly or indirectly). The fair
value of currency derivatives is determined based on generally
accepted valuation methods using available observable market
data. Calculated fair values are verified against comparable
external market quotes on a monthly basis.
Issued bonds
The fair value of issued bonds measured at amortised cost is
within level 1 of the fair value hierarchy.
Overdraft and credit facilities
The carrying amount of overdraft and credit facilities measured
at amortised cost is not considered to differ significantly from the
fair value.
Trade receivables, trade payables and other receivables
Receivables and payables pertaining to operating activities with
short churn ratios are considered to have a carrying amount
equal to fair value.
Cash and cash equivalents
The carrying amount of cash and cash equivalents is not
considered to differ significantly from the fair value.
(DKKm)
30 June 2024
31 December 2023
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets:
Currency derivatives
3
3
37
37
Trade receivables
25,225
25,225
22,296
22,296
Other receivables
7,295
7,295
6,744
6,744
Cash and cash equivalents
8,935
8,935
6,452
6,452
Financial assets measured
at amortised costs
41,455
41,455
35,492
35,492
Financial liabilities:
Currency derivatives
23
23
-
-
Issued bonds measured at amortised cost
25,218
21,707
21,450
18,364
Overdraft and credit facilities
1,154
1,154
677
677
Trade payables
14,453
14,453
13,111
13,111
Financial liabilities measured
at amortised cost
40,825
37,314
35,238
32,152
Page 23 of 23 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1123 – 24 July 2024
Statement by the Board of Directors
and the Executive Board
The Board of Directors and the Executive Board have today considered and adopted the Interim Financial Report of DSV A/S for the
six-month period ended 30 June 2024.
The Interim Financial Report, which has not been audited or reviewed by the Company’s auditor, has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union and additional requirements in accordance with the
Danish Financial Statements Act.
In our opinion, the Interim Financial Statements give a true and fair view of the financial position on 30 June 2024 and the profit or
loss and cash flows of the Group for the six-month period ended 30 June 2024.
We also find that the Management’s commentary provides a fair statement of developments in the activities and financial situation of
the Group, financial results for the period, the general financial position of the Group and a description of the major risks and
elements of uncertainty faced by the Group. Aside from the disclosures in the Interim Financial Report, no changes in the Group’s
most significant risks and uncertainties have occurred relative to the disclosures in the Annual Report for 2023.
Executive Board:
Board of Directors: