DSV Group
Our reach is global, yet our presence is local and close to our customers. Approximately 74,000 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
Q3 2024
Company Announcement No. 1141
23 October 2024
Solid earnings in Q3 2024 driven by continued volume growth and higher gross profit
• The DSV Group achieved solid results in Q3 2024 with continuing improvement in earnings driven by positive volume growth
across all divisions.
• Quarterly gross profit improved by 4.8% and EBIT before special items was 1.5% higher compared to the same period last year
leading to sequential growth in diluted adjusted EPS of 2.1%.
• Adjusted free cash flow generation in Q3 2024 improved to DKK 2,524 million.
• Full-year 2024 guidance for EBIT before special items of DKK 16,000-17,000 million.
Jens H. Lund, Group CEO: “The third quarter of 2024 has been a landmark for our company with the agreement to acquire Schenker
creating a world leader within transport and logistics and, following the announcement, we have successfully raised EUR 5 billion in equity
from a broad range of long-term investors. We look forward to welcoming our colleagues from Schenker and together build a world-class
transport and logistics company with a unique global network and service offerings to our customers. Our financial results in Q3 2024 show
continued positive earnings growth. Our quarterly gross profit and EBIT before special items have increased on a year-over-year basis for
the first time since Q3 2022, driven by positive volume growth across all divisions and higher gross profit.”
Selected key figures and ratios for the period 1 January – 30 September 2024
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Key figures (DKKm)
Revenue
44,095
35,576
123,592
114,257
Gross profit
11,080
10,649
32,186
33,371
Operating profit (EBIT) before special items
4,420
4,396
12,160
13,773
Special items, costs
124
-
124
-
Profit for the period
2,845
2,808
7,950
9,470
Adjusted earnings for the period
3,001
2,864
8,254
9,652
Adjusted free cash flow
2,524
2,666
4,196
10,803
Ratios
Conversion ratio
39.9%
41.3%
37.8%
41.3%
Diluted adjusted earnings per share of DKK 1 for the last 12
months
53.8
63.1
DSV Group
Our reach is global, yet our presence is local and close to our customers. Approximately 74,000 employees in more than 80 countries work passionately to
deliver great customer experiences and high-quality services. Read more at www.dsv.com
Performance in Q3 2024
While the market in Q3 2024 was still impacted by uncertainty regarding the macroeconomic outlook and escalations around the situation
in the Middle East and Red Sea, DSV reported positive earnings growth driven by strong volume development and improved free cash
flow. On the back of the financial results for the first nine months and outlook for the remaining part of the year, we narrowed our full-year
EBIT guidance for 2024 to DKK 16,000-17,000 (previously DKK 15,500-17,000 million) in a separate trading update on 3 October 2024.
Air & Sea continued the positive development with volume growth and continued market share gains in Q3 2024 leading to an increase in
gross profit of 5.2% compared to the same period last year. For sea freight, gross profit increased 11.8% in the same period driven by
higher volumes and improved average gross profit yield, while gross profit for air was down 1.5% due to lower average gross profit yield
partly offset by higher volumes.
Road reported stable results in a market characterised by overall weakened demand and low rates, especially towards the end of the
quarter. High revenue growth driven by increased volumes resulted in relatively stable gross profit and EBIT before special items for Q3
2024 compared to the same period last year, despite increasing cost pressure. The division continues to focus on cost and productivity
improvement measures to offset the current market situation. In early October 2024, Road announced price increases towards customers
to reduce the impact of the cost inflation from suppliers.
Solutions reported an increase in gross profit of 9.3% and a 9.8% increase in EBIT before special items in Q3 2024 compared to the same
period last year. The positive development was driven by new customer wins and growth in order lines in combination with minor gains
from sale of properties, partly offset by ramp-up of new sites leading to temporarily lower utilisation rates.
With the announced acquisition of Schenker, which is expected to close in Q2 2025, DSV is even stronger positioned to grow the business
due to our enhanced global network and customer offerings, while at the same time maintaining our focus on having industry leading
margins. M&A will remain a core pillar of our corporate strategy, as we believe that the combination of organic and inorganic growth will
create a stronger DSV going forward.
We consistently assess our operations to remain competitive and flexible to meet changes in market demand, and we continuously invest
in digital and physical infrastructure to optimise productivity. As part of the half-year 2024 interim report, we launched a company-wide
operational efficiency programme with an expected full-year effect in EBIT before special items of approximately DKK 750 million excluding
impact from cost inflation and higher activity. The cost initiatives had limited impact on the financials in this quarter but will materialise in Q4
2024 and into Q1 2025.
Outlook for 2024
Based on our performance in the first nine months of 2024 and our expectations for the rest of the year, we revised the full-year EBIT
outlook for 2024 on 3
October 2024 to the following (reference is made to Announcement No. 1135):
• EBIT before special items is expected to be in the range of DKK 16,000-17,000 million (previously DKK 15,500-17,000 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.
Contacts
Investor Relations
Stig Frederiksen, tel. +45 43 20 36 38, stig.frederiksen@dsv.com
Alexander Plenborg, tel. +45 43 20 33 73, alexander.plenborg@dsv.com
Media
Jonatan Rying Larsen, tel. +45 25 41 77 37, press@dsv.com
Yours sincerely,
DSV A/S
Page 2 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Interim Financial Report
Q3 2024
Keeping supply chains flowing in a world of change
Page 2 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 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 .................................................. 24
Page 3 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Financial highlights
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Results (DKKm)
Revenue
44,095
35,576
123,592
114,257
Gross profit
11,080
10,649
32,186
33,371
Operating profit before amortisation and depreciation (EBITDA)
before special items
5,850
5,724
16,391
17,687
Operating profit (EBIT) before special items
4,420
4,396
12,160
13,773
Special items, costs
124
-
124
-
Net financial expenses
515
629
1,520
1,147
Profit for the period
2,845
2,808
7,950
9,470
Adjusted earnings for the period
3,001
2,864
8,254
9,652
Cash flows (DKKm)
Operating activities
4,589
3,750
8,807
14,499
Investing activities
(1,083)
(170)
(1,569)
(1,664)
Free cash flow
3,506
3,580
7,238
12,835
Adjusted free cash flow
2,524
2,666
4,196
10,803
Share buyback
(819)
(4,211)
(3,347)
(11,441)
Dividends distributed
-
-
(1,533)
(1,424)
Cash flow for the period
(203)
(1,124)
2,327
(1,341)
Gross investment in property, plant and equipment
604
542
1,587
1,539
Financial position (DKKm)
DSV A/S shareholders’ share of equity
71,940
70,179
Non-controlling interests
303
270
Total equity
72,243
70,449
Total assets
158,326
150,673
Net working capital (NWC)
8,268
3,186
Net interest-bearing debt (NIBD)
37,669
32,333
Invested capital
105,701
99,791
Financial ratios (%)
Gross margin
25.1
29.9
26.0
29.2
Operating margin
10.0
12.4
9.8
12.1
Conversion ratio
39.9
41.3
37.8
41.3
Effective tax rate
24.8
25.5
24.4
25.0
ROIC before tax for the last 12 months
15.7
17.9
Return on equity
15.2
17.5
Solvency ratio
45.4
46.6
Gearing ratio
1.7
1.4
Share ratios
Earnings per share (EPS) of DKK 1 for the last 12 months
51.8
62.1
Diluted adjusted earnings per share of DKK 1 for the last 12 months
53.8
63.1
Number of shares issued (’000) at 30 September
214,000
219,000
Number of treasury shares (’000) at 30 September
6,233
7,655
Average number of shares outstanding (’000) for the last 12 months
208,743
211,995
Average diluted number of shares (’000) for the last 12 months
209,234
214,110
Diluted number of shares (’000) at 30 September
208,461
212,444
Share price end of period (DKK)
1,382.5
1,319.0
Non-financial data
Full-time employees (FTE) at 30 September
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 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Management’s commentary
The DSV Group achieved solid Q3 2024 results with an increase in gross profit of 4.8% and 1.5% in EBIT
before special items compared to the same period last year, despite continued uncertainty in the market
owing to the current macroeconomic and geopolitical situation. Activity levels increased across all three
divisions with higher volumes confirming our commercial initiatives, while margins overall remained stable
despite cost inflation and a competitive market landscape.
Adjusted free cash flow for Q3 2024 and the first nine months of 2024 was satisfactory, despite higher
activity levels adding to a higher net working capital.
DSV to acquire Schenker
On 13 September 2024, DSV announced an agreement to
acquire Schenker from Deutsche Bahn. The transaction values
Schenker at an enterprise value of EUR 14.3 billion
(approximately DKK 107 billion) and equity value of EUR 11.3
billion (approximately DKK 84 billion).
On 2 October 2024, the Supervisory Board of Deutsche Bahn
and the German Federal Ministry for Digital and Transport
approved the sale of Schenker to DSV. Closing of the
transaction is subject to customary regulatory approvals, and
completion is expected in Q2 2025.
Schenker is one of the world’s leading transport and logistics
providers with around 86,600 employees incl. temporary
workers at more than 1,850 locations in over 70 countries. The
company operates land, air and ocean transportation services
and offers comprehensive logistics and global supply chain
management solutions. In 2023, Schenker generated revenue of
EUR 19.1 billion (approximately DKK 142 billion).
On 4 October 2024, DSV completed an equity offering of 26.4
million new shares to raise DKK 37.3 billion (approximately EUR
5 billion) to partially finance the transaction. DSV experienced
significant interest from investors, and the equity offering was
completed without discount compared to the closing price on 3
October 2024 of DKK 1,410.5 per share. We expect to refinance
the remaining part of the bridge financing to long-term financing
in the next 12 months after the announcement, as we remain
committed to maintaining our current credit ratings.
Strategic and financial rationale
Acquisitions are an integral part of DSV’s growth strategy, and
DSV has a long track record of successfully integrating acquired
companies. The combination with Schenker will create a world-
leading player in the industry with a combined 2023 revenue of
approximately DKK 293 billion and a combined workforce of
around 160,000 employees.
The combination with Schenker is a unique opportunity to create
and develop a world-leading logistics provider, offering
distinctive solutions for our customers within a very dynamic and
competitive industry. DSV and Schenker are an excellent match
based on similarities in business models and corporate culture
with focus on customer service, sustainability and employees.
Transactional overview and further details of the agreement are
provided in Company Announcement No. 1132.
Quarterly business highlights
In 2024, we have been developing and implementing our
operational and commercial strategies. In combination, it is our
ambition that these two elements will support our endeavours to
continue to outgrow the market organically.
From a commercial perspective, our focus on the industry
verticals of our largest customers, on medium-sized customers
at country level, and on the digital customer journey for our
smallest customers are key to our continued success. Together
with further optimisation of our network and our procurement,
this will create a solid foundation for the integration of Schenker
post-closing.
We continue to receive positive feedback with all-time high
customer satisfaction ratings across all three divisions. Based
on the current share of wallet for these customers, we see
further potential for organic growth.
NEOM update
The exclusive logistics joint venture to provide transport and
logistics services for the projects in NEOM has obtained final
regulatory approvals, and the incorporation process has begun.
A modest ramp-up of the joint venture is expected in Q4 2024
and in 2025.
The timing of investments in the joint venture will follow the
progress of the individual projects in NEOM. We expect limited
capital allocation in 2024, and we expect a return on the
invested capital in line with our financial target.
Page 5 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Results for the period
Growth 2023 – 2024
(DKKm)
Q3 2023
Currency
translation
Q3 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q3 2024
Revenue
35,576
(348)
35,228
8,867
25.2%
44,095
Gross profit
10,649
(78)
10,571
509
4.8%
11,080
EBIT before special items
4,396
(41)
4,355
65
1.5%
4,420
Gross margin (%)
29.9
25.1
Operating margin (%)
12.4
10.0
Conversion ratio (%)
41.3
39.9
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Revenue
114,257
(1,124)
113,133
10,459
9.2%
123,592
Gross profit
33,371
(276)
33,095
(909)
(2.7%)
32,186
EBIT before special items
13,773
(138)
13,635
(1,475)
(10.8%)
12,160
Gross margin (%)
29.2
26.0
Operating margin (%)
12.1
9.8
Conversion ratio (%)
41.3
37.8
Revenue
In Q3 2024, revenue increased by 25.2% to DKK 44,095 million
compared to same period last year driven by a combination of
higher volumes for both air and sea and higher sea freight rates.
As opposed to last year, we did not experience the usual
summer seasonality drop in volumes during the holiday period.
For the first nine months of 2024, revenue amounted to DKK
123,592 million, compared to DKK 114,257 million last year, an
increase of 9.2%.
(DKKm)
Q3 2024
Growth*
YTD 2024
Growth*
Air & Sea
28,416
32.1%
75,748
8.3%
Road
9,967
9.8%
30,953
7.3%
Solutions
6,619
20.3%
19,524
14.9%
Group and
eliminations
(907)
(2,633)
Total
44,095
25.2%
123,592
9.2%
* Growth in constant currencies
For the first nine months of 2024, the Air & Sea revenue was
positively impacted by the continued organic growth in volumes
combined with higher average freight rates in sea.
The Road and Solutions divisions also generated revenue
growth in the first nine months of 2024 compared to the same
period last year. The growth for Road was mainly driven by
higher volumes in our European groupage network, although it
was partly offset by lower rates. The Solutions revenue
increased largely due to the expansion of our global footprint
from adding multiple highly automated warehouses.
Revenue by division, YTD 2024 (DKKm)
Gross profit
For Q3 2024, gross profit for the Group increased by 4.8% to
DKK 11,080 million compared to the same period last year,
mainly driven by volume growth across all divisions and higher
gross profit yields in sea.
Additionally, Solutions continued its growth driven by the
expansion of new warehouse facilities. The overall development
in Road was flat, positively impacted by more volume but
negatively impacted by high margin pressure on domestic
transports from both hauliers and customers.
For the first nine months of 2024, gross profit amounted to DKK
32,186 million, compared to DKK 33,371 million last year, a
decline of 2.7%.
Page 6 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Gross profit and growth by division compared to same period
last year are specified below:
(DKKm)
Q3 2024
Growth*
YTD 2024
Growth*
Air & Sea
6,458
5.2%
18,293
(7.2%)
Road
1,934
0.2%
5,959
0.3%
Solutions
2,587
9.3%
7,564
7.7%
Group and
eliminations
101
370
Total
11,080
4.8%
32,186
(2.7%)
* Growth in constant currencies
For the first nine months of 2024, Air & Sea generated a gross
profit of DKK 18,293 million, a negative growth of 7.2%,
attributed to lower yields in Air & Sea on average for the period.
The Road division recorded modest gross profit growth of 0.3%
to DKK 5,959 million during the first nine months of the year
despite tough market conditions. The division maintained its
upward momentum in volumes, especially within the European
groupage network, and secured more business with key
customers. However, the volume growth was partially offset by
lower rates and higher cost.
Solutions delivered gross profit growth of 7.7% to DKK 7,564
million for the first nine months of 2024 due to higher activity
levels with existing customers and the continued expansion of
our global footprint of warehouse facilities.
Gross profit by division, YTD 2024 (DKKm)
The gross margin for the Group was 25.1% in Q3 2024
compared to 29.9% for the same period last year. The margin
decline mainly relates to reduced margins in Air & Sea from
increasing freight rates.
In Road, the increasing cost pressure from suppliers have had a
minor negative impact on margins, while in Solutions the ramp-
up of new warehouses has led to temporarily lower utilisation
rates and margins.
The gross margin for the Group was 26.0% for the first nine
months of 2024, compared to 29.2% for the same period last
year. The decline was mainly due to Air & Sea and reflects the
continued normalisation of gross profit yields and higher
revenue driven by the increase in freight rates. For Solutions,
the gross margin was lower than last year driven by lower
average utilisation due to new facilities. The gross margin in
Road declined compared to last year due to weakened market
conditions adding pressure on the rates and higher cost
pressure from suppliers.
EBIT before special items
For Q3 2024, EBIT before special items increased slightly by
1.5% to DKK 4,420 million compared to DKK 4,396 million last
year. Q3 2024 was thereby the first quarter since Q3 2022 with
growth in EBIT before special items on a year-over-year basis.
Operating margin before special items was 10.0% compared to
12.4% in the same quarter last year, while, sequentially, the
operating margin stabilised.
EBIT before special items amounted to DKK 12,160 million for
the first nine months of 2024, compared to DKK 13,773 million
last year. Operating margin before special items was 9.8% for
the first nine months of 2024 compared to 12.1% for the same
period last year. Operating margin before special items was
down due to higher freight rates as well as the normalising
freight yields in Air & Sea.
EBIT and growth by division compared to same period last year
are specified below:
(DKKm)
Q3 2024
Growth*
YTD 2024
Growth*
Air & Sea
3,260
0.6%
8,785
(15.0%)
Road
514
(1.6%)
1,553
0.4%
Solutions
636
9.8%
1,797
2.9%
Group and
eliminations
10
25
Total
4,420
1.5%
12,160
(10.8%)
* Growth in constant currencies
The conversion ratio for the Group was 39.9% in Q3 2024
compared to 41.3% in the same quarter last year. For the first
nine months of 2024, the conversion ratio was 37.8% compared
to 41.3% last year.
The lower conversion ratio is primarily due to the normalisation
of freight markets and lower gross profit yields. For Solutions,
the conversion ratio was negatively impacted by the continued
lower average warehouse utilisation.
In Q3 2024, all divisions improved their conversion ratio
compared to H1 2024, primarily driven by growth in gross profit
but also by increased efficiency and cost savings.
For the first nine months of the year, our continued focus on cost
management resulted in a stable cost base despite higher
activity level and cost inflation compared to the same period last
year. In Q3 2024, the total cost base increased 6.5% compared
to last year due to cost inflation and cost in Q3 2023 being
impacted by a minor reversal of bad debt provisions. Focus on
continued efficiency improvements through digitalisation and
standardisation of services and consolidation of warehouse
facilities are included in the announced efficiency programme to
reduce costs by DKK 750 million on a full-year basis before
impact from cost inflation and cost related to higher activity. The
effects of the programme will be realised in Q4 2024 and into Q1
2025.
Page 7 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
EBIT by division, YTD 2024 (DKKm)
Financial items
Net financial expenses amounted to DKK 1,520 million for the
first nine months of 2024, compared to DKK 1,147 million in the
same period of last year. The increase in net financial expenses
was primarily attributable to higher lease liabilities and reduced
financial income due to lower cash reserves.
(DKKm)
YTD 2024
YTD 2023
Interest on lease liabilities
823
623
Other interest cost, net
416
231
Interest on pensions
33
28
Foreign exchange adjustments
248
265
Net financial expenses
1,520
1,147
Tax on profit for the period
The effective tax rate came to 24.4% for the first nine months of
2024, compared to 25.0% for the same period last year.
Profit for the period
Profit for the first nine months of 2024 was DKK 7,950 million,
compared to DKK 9,470 million for the same period of 2023. The
decline was mainly due to the lower EBIT before special items
and higher net financial expenses for the period offset partly by
lower tax on profit.
Diluted adjusted earnings per share
Diluted adjusted EPS (rolling 12-months) decreased by 14.7%
compared to the same period last year and came to DKK 53.8
per share (30 September 2023: DKK 63.1 per share). The
decline was due to the decrease in adjusted earnings partly
offset by a reduction of 4.875 million outstanding diluted shares
corresponding to a decrease of 2.3% following the Group’s
share buyback programmes.
Cash flow
Cash flow statement – summary
(DKKm)
Q3
2024
Q3
2023
YTD
2024
YTD
2023
EBITDA before special items
5,850
5,724
16,391
17,687
Change in net working capital
449
(332)
(3,324)
2,208
Tax, interests, change in
provisions, etc.
(1,619)
(1,642)
(4,169)
(5,133)
Special items, paid
(91)
-
(91)
(263)
Cash flow from operating
activities
4,589
3,750
8,807
14,499
Cash flow from investing
activities
(1,083)
(170)
(1,569)
(1,664)
Free cash flow
3,506
3,580
7,238
12,835
Proceeds and repayment of
debt
(3,216)
(899)
(938)
(3,051)
Transactions with shareholders
(493)
(3,805)
(3,973)
(11,125)
Cash flow from financing
activities
(3,709)
(4,704)
(4,911)
(14,176)
Cash flow for the period
(203)
(1,124)
2,327
(1,341)
Free cash flow
3,506
3,580
7,238
12,835
Acquisition of subsidiaries
-
57
-
607
Special items
91
-
91
263
Repayment of lease liabilities
(1,073)
(971)
(3,133)
(2,902)
Adjusted free cash flow
2,524
2,666
4,196
10,803
In Q3 2024, adjusted free cash flow amounted to DKK 2,524
million, representing a decrease of DKK 142 million compared to
the same period last year. For the first nine months of 2024,
adjusted free cash flow was DKK 4,196 million, compared to
DKK 10,803 million for the same period last year.
Net working capital improved by DKK 449 million in Q3 2024
positively impacted by completion of property projects, partly
offset by the increase in revenue due to an increase in volumes
and freight rates.
For the first nine months of 2024, the change in net working
capital resulted in a cash outflow of DKK 3,324 million compared
to a cash inflow of DKK 2,208 million during the same period last
year. The change in net working capital was attributable to a
more normalised market environment, whereas especially the
first six months of 2023 were positively impacted by the
declining rates and lower volume activity resulting in a
temporary cash inflow.
Cash flow from investing activities showed a cash outflow of
DKK 1,083 million for Q3 2024, compared to a cash outflow of
DKK 170 million in the same quarter of 2023. The increase is
driven by lower cash inflow from disposal of property, plant and
equipment and an increase in other financial assets. For the first
nine months of 2024, cash flow from investing activities resulted
in a cash outflow of DKK 1,569 million, compared to a cash
outflow of DKK 1,664 million during the corresponding period of
2023. This decrease was mainly due to the disposal of
properties and no material acquisitions in 2024.
Cash flow from financing activities resulted in a net cash outflow
of DKK 3,709 million for Q3 2024 and DKK 4,911 million for the
first nine months of 2024. These outflows were primarily driven
by repayment of debt and leases and shareholder distributions.
Page 8 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Net working capital
On 30 September 2024, the Group’s net working capital (NWC)
was DKK 8,268 million, compared to DKK 3,186 million on 30
September 2023. The increase is mainly driven by higher freight
rates and increasing volumes, primarily in Air & Sea, combined
with changes in the timing of certain payables compared to last
year.
Funds tied up in property projects decreased compared to last
quarter due to completion of new facilities with the biggest
contributor being the logistics centre in Horsens, Denmark.
Relative to estimated full-year revenue, funds tied up in NWC
were 4.7% as of 30 September 2024 (compared to 2.2% on 30
September 2023). We remain committed to reducing the NWC
towards the end of the year 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 71,940 million on
30 September 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).
On 30 September 2024, the Company’s portfolio of treasury
shares was 6,232,691 shares. On 22 October 2024, the portfolio
of treasury shares was 5,872,172 shares.
In connection with the announcement of the acquisition of
Schenker on 13 September 2024, we discontinued the share
buyback programme that was initiated on 24 July 2024
(reference is made to Announcement No. 1133).
The solvency ratio excluding non-controlling interests was
45.4% on 30 September 2024 (30 September 2023: 46.6%).
The development in equity since 1 January is specified below:
(DKKm)
YTD 2024
YTD 2023
Equity at 1 January
68,703
71,519
Profit for the period (attributable to
DSV shareholders)
7,899
9,406
Currency translation, foreign
enterprises
(1,099)
(193)
Allocated to shareholders
(4,880)
(12,865)
Sale of treasury shares
888
1,745
Other equity movements
429
567
Equity end of period
71,940
70,179
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 37,669 million on 30
September 2024, compared to DKK 32,333 million on 30
September 2023. The increase in net interest-bearing debt can
mainly be attributed to an increase in lease liabilities and
issuance of a Eurobond loan of EUR 500 million.
The gearing ratio (NIBD/EBITDA) was 1.7x on 30 September
2024, compared to 1.4x last year.
The weighted average duration of the Company’s long-term
bonds and drawn credit facilities was 6.7 years on 30
September 2024.
Invested capital and ROIC
The invested capital including goodwill and customer
relationships amounted to DKK 105,701 million on 30
September 2024, compared to DKK 99,791 million on 30
September 2023. The increase was mainly a result of higher net
working capital in Air & Sea and right-of-use lease assets in
Solutions.
Return on invested capital (including goodwill and customer
relationships) was 15.7% for the rolling 12-month period ended
30 September 2024 compared to 17.9% last year. The decrease
is predominantly due to the lower operating profit (EBIT) before
special items for the rolling 12-month period.
Excluding goodwill and customer relationships, return on
invested capital was 60.8% for the rolling 12-month period
ended 30 September 2024, compared to 75.7% for the same
period last year.
Outlook
Based on our performance in the first nine months of 2024 and
our expectations for the rest of the year, we revised the full-year
EBIT outlook for 2024 on 3
October 2024 to the following
(reference is made to Company Announcement No. 1135):
• EBIT before special items is expected to be in the
range of DKK 16,000-17,000 million (previously DKK
15,500-17,000 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.
Page 9 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Air & Sea
In Q3 2024, the gross profit and EBIT before special items for Air & Sea increased compared to the same
period last year driven by higher volumes for both air and sea and higher gross profit yields in sea. In Q3
2024, the division generated gross profit of DKK 6,458 million, 5.2% above same period last year, while
the EBIT before special items was DKK 3,260 million, which is 0.6% higher than the same period last
year. The situation in the Red Sea had a positive impact on the sea yields and margins. We estimate that
DSV continued taking market share during the quarter, in line with the commercial initiatives.
Statement of profit or loss
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Divisional revenue
28,416
21,912
75,748
71,118
Direct costs
21,958
15,702
57,455
51,127
Gross profit
6,458
6,210
18,293
19,991
Other external costs
956
762
2,754
2,668
Staff costs
1,957
1,873
5,894
5,971
EBITDA before special items
3,545
3,575
9,645
11,352
Amortisation and depreciation
285
294
860
871
EBIT before special items
3,260
3,281
8,785
10,481
Key figures and ratios
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Gross margin (%)
22.7
28.3
24.1
28.1
Operating margin (%)
11.5
15.0
11.6
14.7
Conversion ratio (%)
50.5
52.8
48.0
52.4
Full-time employees
21,133
21,569
Total invested capital (DKKm)
66,220
63,754
Net working capital (DKKm)
5,099
414
ROIC before tax (%)
18.0
20.6
Quarterly business highlights
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 cargo
solutions. In Q3 2024, the commercial progress continued with
volumes growing above the market for both air and in sea. We
continue to see positive development with our largest customers
in our targeted verticals, while at the same time maintaining a
stronghold within the small and medium-sized customers at a
branch and country level.
In Q3 2024, we experienced all-time high customer satisfaction
ratings in a time with geopolitical tensions impacting global
supply chains, which we believe is due to our strategy of
bringing the customer more in focus and maintaining a flexible
approach to customer needs.
The ongoing network development continues to make strides for
both air freight and sea freight with new lanes and consolidation
efforts. The ambition is to be calibrated to reflect the integration
of the Schenker acquisition, which will add to the strength of our
global network and customer offerings.
Market development
Air
During Q3 2024, the global air freight market was positively
impacted by continued demand growth across several verticals,
including e-commerce and technology. Adjusted for e-commerce
and perishables, we estimate that our addressable market grew
by mid to high-single digits in Q3 2024.
DSV’s air freight volumes grew by 8% in Q3 2024 compared to
Q3 2023 and by 7% in the first nine months of 2024 compared
to the same period last year. The increase was mainly driven by
Page 10 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
improved export from APAC, which was positively impacted by
growth in demand among our technology customers.
Furthermore, the air demand was positively impacted by the
narrowing price gap between sea and air, driving an increase in
conversions from sea to air shipments.
Sea
Sea freight volumes remained strong, especially on the Asia to
North America trade lanes in the first part of Q3 2024. Contrary
to expectations, the usual drop in volumes during the summer
did not occur with demand remaining high despite the EU
holiday season. We estimate that the market grew around mid-
single digits in Q3 2024.
DSV’s sea freight volumes grew by 8% during Q3 2024
compared to Q3 2023 and by 7% in the first nine months of
2024 compared to the same period last year. This is estimated
to be slightly above the sea freight market. Strong growth rates
continued to be recorded on export volumes out of APAC.
DSV volume growth
Q3 2024
YTD 2024
Air freight – tonnes
8%
7%
Sea freight – TEUs
8%
7%
Divisional revenue
For Q3 2024, revenue amounted to DKK 28,416 million,
compared to DKK 21,912 million for the same period last year.
Revenue for the quarter was up 32.1% compared to the same
period last year due to increase in volumes and higher freight
rates in sea.
The division’s revenue amounted to DKK 75,748 million for the
first nine months of 2024 and was up 8.3% compared to DKK
71,118 million for the same period last year.
Gross profit
For Q3 2024, gross profit amounted to DKK 6,458 million,
compared to DKK 6,210 million for the same period last year.
Gross profit for the quarter grew by 5.2%.
In Q3 2024, the gross margin was 22.7% compared to 28.3%
last year, as higher volumes and increasing yields in sea were
offset by lower yields in air.
The increase in gross profit in Q3 2024 compared to last year
was caused by volume growth in both air and sea in
combination with a 2.5% increase in sea yields. For air, the
yields decreased by 10%. Air yields remained relatively stable in
Q3 2024 compared to Q2 2024, while the sea yields increased
in Q3 2024 compared to the previous quarter, partly due to the
Red Sea situation and growth in demand.
For the first nine months of 2024, gross profit amounted to DKK
18,293 million, down 7.2% compared to DKK 19,991 million for
the same period last year.
It is still our expectation that the Red Sea situation will have
some impact on the market and the available capacity, but we
do not expect the situation to materially benefit our sea gross
profit yields further compared to the Q3 level. For the remaining
part of the year, we expect more normalised seasonality in
demand.
The division’s gross margin was 24.1% for the first nine months
of 2024, compared to 28.1% for the same period last year. The
decrease was driven by lower yields, but partly offset by higher
volumes compared to same period last year.
EBIT before special items
For Q3 2024, EBIT before special items amounted to DKK 3,260
million, compared to DKK 3,281 million for the same period last
year. The EBIT before special items was on par with last year,
as the improvement in gross profit was offset by higher cost
inflation and lower comparison numbers driven by reversal of
minor bad debt provisions in Q3 2023.
EBIT before special items for the quarter was slightly up 0.6%
compared to the same period last year in constant currencies.
Sequentially, the division delivered nominal EBIT growth of
12.5% from Q2 2024 to Q3 2024 due to increasing activity levels
and increasing sea gross profit yields combined with stable
gross profit yields for air.
The conversion ratio was 50.5% for Q3 2024, compared to
52.8% for the same period last year, impacted primarily by
higher cost.
EBIT before special items was DKK 8,785 million for the first
nine months of 2024, compared to DKK 10,481 million for the
same period last year. EBIT before special items declined
15.0%.
The conversion ratio was 48.0% for the first nine months of
2024, compared to 52.4% for the same period last year. The
reduced conversion ratio is primarily due to higher cost despite
higher gross profit.
Productivity, measured as shipments per white-collar FTE,
increased by 16% compared to the first nine months of 2023,
and the improving trend in H1 2024 continued into Q3 2024.
Net working capital
The Air & Sea division’s net working capital came to DKK 5,099
million on 30 September 2024, compared to DKK 414 million on
30 September 2023. The increase in net working capital is
mainly driven by higher activity and increasing freight rates in
sea freight during the period combined with changes in timing of
certain payables compared to last year.
Page 11 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Growth Air & Sea 2023 – 2024
(DKKm)
Q3 2023
Currency
translation
Q3 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q3 2024
Divisional revenue
21,912
(402)
21,510
6,906
32.1%
28,416
Gross profit
6,210
(70)
6,140
318
5.2%
6,458
EBIT before special items
3,281
(39)
3,242
18
0.6%
3,260
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Divisional revenue
71,118
(1,170)
69,948
5,800
8.3%
75,748
Gross profit
19,991
(272)
19,719
(1,426)
(7.2%)
18,293
EBIT before special items
10,481
(147)
10,334
(1,549)
(15.0%)
8,785
Air & Sea freight performance
Air freight
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Divisional revenue
14,052
11,691
39,584
38,122
Direct costs
11,040
8,602
30,724
27,732
Gross profit
3,012
3,089
8,860
10,390
Gross margin (%)
21.4
26.4
22.4
27.3
Volume (tonnes)*
351,910
324,436
1,036,199
968,604
Gross profit per unit (DKK)
8,559
9,521
8,550
10,727
Sea freight
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Divisional revenue
14,364
10,221
36,164
32,996
Direct costs
10,918
7,100
26,731
23,395
Gross profit
3,446
3,121
9,433
9,601
Gross margin (%)
24.0
30.5
26.1
29.1
Volume (TEUs)*
704,253
653,817
2,007,107
1,883,948
Gross profit per unit (DKK)
4,893
4,774
4,700
5,096
* 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 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Road
The Road division’s gross profit for Q3 2024 was DKK 1,934 million and on par with last year, while EBIT
before special items decreased by 1.6% to DKK 514 million for Q3 2024 compared to the same period last
year. Despite challenging market conditions with pressure on the freight rates due to low demand, the
Road division achieved solid results, and we estimate that the division gained market share, especially on
European groupage shipments.
Statement of profit or loss
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Divisional revenue
9,967
9,036
30,953
28,780
Direct costs
8,033
7,112
24,994
22,857
Gross profit
1,934
1,924
5,959
5,923
Other external costs
307
354
950
1,084
Staff costs
881
838
2,781
2,658
EBITDA before special items
746
732
2,228
2,181
Amortisation and depreciation
232
210
675
639
EBIT before special items
514
522
1,553
1,542
Key figures and ratios
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Gross margin (%)
19.4
21.3
19.3
20.6
Operating margin (%)
5.2
5.8
5.0
5.4
Conversion ratio (%)
26.6
27.1
26.1
26.0
Full-time employees
16,538
16,642
Total invested capital (DKKm)
12,051
12,377
Net working capital (DKKm)
(973)
991
ROIC before tax (%)
16.5
16.6
Quarterly business highlights
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.
In Q3 2024, the market in Europe was soft with volume levels
under pressure due to subdued economic activity, especially in
Germany. Meanwhile, our commercial efforts with European
control towers for our largest customers and our European
groupage network saw positive development despite an adverse
market. We are confident of the long-term potential from these
initiatives based on pipeline development and win-ratios with
new customers.
The operational combination of Road and less-than-container-
load (LCL) in sea is supporting the growth, and we are also
starting to see positive results from the cooperation between our
road and air activities. Focus will be on sales efficiency and
terminal operations to optimise efficiency and utilisation.
Furthermore, we are showing our dedication to decarbonising
our operations and have already exceeded our targets for 2024
with +120 new low and zero-emission trucks and +400 new
best-in-class diesel trucks in our fleet.
The acquisition of Schenker will significantly expand our
services and coverage for our customers in key markets, such
as France and Germany, and contribute strongly to operational
efficiencies.
Market development
The market trend seen during the first six months of 2024 was
characterised by low demand, which continued into Q3 2024
and led to lower freight rates across most of Europe and in the
US compared to the same period last year. Due to challenging
market conditions, utilisation was low specifically within our
domestic network, adding pressure on profitability for the
division. Despite the challenging market, we estimate that the
Page 13 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
division continued to gain market share, especially as a result of
our strong international network and groupage business.
Divisional revenue
For Q3 2024, revenue amounted to DKK 9,967 million,
compared to DKK 9,036 million for the same period last year.
Revenue for the quarter was up 9.8%. The revenue increase is
driven by volume growth in our European groupage network and
with large customers. The revenue increase from higher
volumes is partly offset by continued low freight rates due to the
market development.
The division’s revenue amounted to DKK 30,953 million for the
first nine months of 2024, compared to DKK 28,780 million for
the same period last year. Revenue for the first nine months was
up 7.3%.
The division generated more than 85% of its revenue in Europe
in the first nine months, and soft market conditions led to slightly
lower revenue in some of the countries in the region compared
to the same period last year.
Gross profit
For Q3 2024, gross profit amounted to DKK 1,934 million,
compared to DKK 1,924 million for the same period last year.
Gross profit for the quarter was up 0.2%.
The gross margin in Q3 2024 was 19.4% compared to 21.3%
last year, mainly reflecting the lower utilisation of the domestic
network and increased costs from suppliers.
For the first nine months of 2024, gross profit totalled DKK 5,959
million, which was on level with the same period last year.
The division’s gross margin was 19.3% for the first nine months
of 2024, compared to 20.6% for the same period in 2023. The
lower margin is impacted by lower demand within domestic
transport pressuring profitability and an increasing cost level
from hauliers. The division maintains its focus on developing the
control tower setup and European groupage network, which is
expected to impact positively on the gross margin over time.
To compensate for the increasing cost pressure from suppliers,
the division has announced price increases from October. We
expect the remaining part of the year to be impacted by
continued low demand and pressure on freight rates in
combination with normal seasonality with less activity towards
the end of the year.
EBIT before special items
For Q3 2024, EBIT before special items amounted to DKK 514
million, compared to DKK 522 million for the same period last
year. The division delivered solid results in a challenging market
with EBIT before special items for the quarter being down 1.6%
due to higher depreciation in the quarter.
EBIT before special items was DKK 1,553 million for the first
nine months of 2024 and was on level with the DKK 1,542
million for the same period last year.
The conversion ratio was 26.6% for Q3 2024, slightly below the
27.1% conversion ratio for the same period last year.
The conversion ratio was 26.1% for the first nine months of 2024
and was on level with last year. The conversion ratio was
impacted by the pressure on gross profit combined with
implementation cost on a large contract. The division continues
to focus on cost management and productivity gains combined
with announced price increases.
Net working capital
The Road division’s net working capital was a negative DKK 973
million on 30 September 2024, compared to DKK 991 million on
30 September 2023. The improvement is driven by release of
capital tied up in property projects.
Growth Road 2023 - 2024
(DKKm)
Q3 2023
Currency
translation
Q3 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q3 2024
Divisional revenue
9,036
42
9,078
889
9.8%
9,967
Gross profit
1,924
6
1,930
4
0.2%
1,934
EBIT before special items
522
0
522
(8)
(1.6%)
514
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Divisional revenue
28,780
66
28,846
2,107
7.3%
30,953
Gross profit
5,923
15
5,938
21
0.3%
5,959
EBIT before special items
1,542
5
1,547
6
0.4%
1,553
Page 14 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Solutions
For Q3 2024, the Solutions division realised a gross profit of DKK 2,587 million, a growth of 9.3%
compared to the same period last year, driven by strong development of order lines year-over-year. The
division’s EBIT increased to DKK 636 million in Q3 2024 and was up by 9.8% compared to last year due
to increasing warehouse capacity and order lines combined with minor gains from sale of properties. The
positive results were partly offset by lower warehouse utilisation and higher costs related to the continued
expansion of the division’s warehousing capacity.
Statement of profit or loss
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Divisional revenue
6,619
5,538
19,524
17,061
Direct costs
4,032
3,157
11,960
10,022
Gross profit
2,587
2,381
7,564
7,039
Other external costs
467
453
1,352
1,326
Staff costs
654
599
1,962
1,800
EBITDA before special items
1,466
1,329
4,250
3,913
Amortisation and depreciation
830
745
2,453
2,168
EBIT before special items
636
584
1,797
1,745
Key figures and ratios
Quarterly business highlights
The Solutions division offers warehousing and logistics services
globally and controls more than 500 logistics facilities with a
combined capacity of around 9.2 million sqm. The service
portfolio includes freight management, customs clearance, order
management and e-commerce solutions.
We continue to consolidate our footprint in key locations around
the globe and are adjusting our expansion plans to better cater
to market conditions and remain disciplined with respect to our
capital allocation. We remain committed to our vision of
multiclient facilities with a high level of automation, the latest
being our 200,000 sqm warehouse in Horsens in Denmark.
Furthermore, taking steps to decarbonise our industry, we have
installed a 35 MW roof-based photovoltaic system with solar
panels – the largest roof-based system in Europe to date – at
our new facility in Horsens.
In Q3, we continued to pursue further vertical specialisation,
targeting large global customers with increased consistency in
our offerings across markets and locations. We expect further
cross-divisional collaboration and positive development in key
verticals and regions to impact our warehouse utilisation, and
we are pleased to confirm an all-time high and consistently
improving customer satisfaction level.
Market development
In the first nine months of 2024, the demand for contract
logistics services was slightly higher than the same period last
year. In Q3 2024, we saw increased activity and additional signs
of improvement in certain verticals and markets. We continue to
see intense competition and price pressure. We estimate that
DSV has taken market share driven by new warehousing
capacity and implementation of new customers.
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Gross margin (%)
39.1
43.0
38.7
41.3
Operating margin (%)
9.6
10.5
9.2
10.2
Conversion ratio (%)
24.6
24.5
23.8
24.8
Full-time employees
31,874
32,506
Total invested capital (DKKm)
27,944
25,038
Net working capital (DKKm)
4,044
2,076
ROIC before tax (%)
9.1
9.4
Page 15 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Divisional revenue
For Q3 2024, revenue amounted to DKK 6,619 million,
compared to DKK 5,538 million for the same period last year.
Revenue for the quarter was up 20.3% mainly driven by
increased activity with our large customers. Order line activity
also saw a positive development compared to the same period
last year. The Americas and EMEA regions continued to lead
the divisional performance during the quarter.
The division’s revenue was DKK 19,524 million for the first nine
months of 2024, compared to DKK 17,061 million for the same
period of 2023. Revenue increased 14.9% for the first nine
months.
Gross profit
For Q3 2024, gross profit amounted to DKK 2,587 million,
compared to DKK 2,381 million for the same period last year.
Gross profit for the quarter was up 9.3%.
The division’s gross margin was 39.1% for Q3 2024, compared
to 43.0% for the same period last year. While the average
utilisation rate improved slightly for the quarter compared to the
first six months of the year, we are still seeing the impact of the
ramp-up of facilities.
For the first nine months of 2024, gross profit was DKK 7,564
million, compared to DKK 7,039 million for the same period of
2023. Gross profit was up by 7.7%.
The division’s gross margin was 38.7% for the first nine months
of 2024, compared to 41.3% 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 and commercial initiatives to improve
utilisation.
EBIT before special items
For Q3 2024, EBIT before special items amounted to DKK 636
million, compared to DKK 584 million for the same period last
year. EBIT before special items for the quarter was up 9.8%
driven by more available warehousing capacity, an increase in
order lines and minor gains from sale of properties, partly offset
by ramp-up costs and higher depreciation related to the
continued expansion of the division’s warehousing capacity.
The conversion ratio was 24.6% for Q3 2024, compared to
24.5% for the same period last year.
EBIT before special items was DKK 1,797 million for the first
nine months of 2024, compared to DKK 1,745 million for the
same period of 2023.
The conversion ratio was 23.8% for the first nine months of
2024, compared to 24.8% for the same period last year. In the
first nine months of 2024, the cost base continued to be
impacted by higher depreciations. The drop in conversion ratio
was a result of lower utilisation in the ramp-up phase of new
warehouses. The existing warehouse capacity continues to
operate with a high conversion ratio.
Net working capital
The division’s net working capital came to DKK 4,044 million on
30 September 2024, compared to DKK 2,076 million on 30
September 2023. The increase in net working capital continues
to be driven by new warehousing projects, while operational net
working capital improved from last year.
Growth Solutions 2023 – 2024
(DKKm)
Q3 2023
Currency
translation
Q3 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
Q3 2024
Divisional revenue
5,538
(34)
5,504
1,115
20.3%
6,619
Gross profit
2,381
(13)
2,368
219
9.3%
2,587
EBIT before special items
584
(5)
579
57
9.8%
636
(DKKm)
YTD 2023
Currency
translation
YTD 2023 in
constant
currencies
Growth
Growth in
constant
currencies
%
YTD 2024
Divisional revenue
17,061
(66)
16,995
2,529
14.9%
19,524
Gross profit
7,039
(18)
7,021
543
7.7%
7,564
EBIT before special items
1,745
1
1,746
51
2.9%
1,797
Page 16 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Interim financial statements
Statement of profit or loss
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Revenue
Direct costs
Gross profit
Other external costs
Staff costs
Operating profit before amortisation and depreciation (EBITDA) before special
items
Amortisation and depreciation
Operating profit (EBIT) before special items
Special items, costs
Financial income
Financial expenses
Profit before tax
Tax on profit for the period
Profit for the period
Profit for the period attributable to:
Shareholders of DSV A/S
Non-controlling interests
Earnings per share:
Earnings per share of DKK 1 for the period
Diluted earnings per share of DKK 1 for the period
Page 17 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Statement of comprehensive income
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Profit for the period
Items that may be reclassified to profit or loss when certain conditions are
met:
Net foreign exchange differences recognised in OCI
(1,450 )
(1,099 )
(189 )
Fair value adjustments of hedging instruments
(3 )
(11 )
Fair value adjustments of hedging instruments transferred to financial
expenses
(4 )
(8 )
(3 )
(5 )
Tax on items reclassified to profit or loss
(1 )
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses)
(26 )
Tax on items that will not be reclassified
(15 )
(28 )
(47 )
Other comprehensive income, net of tax
(1,466 )
(1,008 )
(72 )
Total comprehensive income
Total comprehensive income attributable to:
Shareholders of DSV A/S
Non-controlling interests
Total
Page 18 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Statement of cash flows
(DKKm)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Operating profit before amortisation and depreciation (EBITDA)
before special items
Adjustments:
Share-based payments
Change in provisions
(442 )
(292 )
(545 )
(284 )
Change in working capital
(332 )
(3,324 )
Special items, paid
(91 )
(91 )
(263 )
Interest received
Interest paid, lease liabilities
(293 )
(223 )
(823 )
(623 )
Interest paid, other
(160 )
(105 )
(625 )
(543 )
Income tax paid
(873 )
(1,118 )
(2,550 )
(4,162 )
Cash flow from operating activities
Purchase of intangible assets
(102 )
(120 )
(300 )
(323 )
Purchase of property, plant and equipment
(604 )
(542 )
(1,587 )
(1,539 )
Disposal of property, plant and equipment
Acquisition of subsidiaries and activities
(57 )
(607 )
Change in other financial assets
(703 )
(685 )
Cash flow from investing activities
(1,083 )
(170 )
(1,569 )
(1,664 )
Free cash flow
Proceeds from borrowings
Repayment of borrowings
(2,207 )
(9 )
(2,324 )
(365 )
Repayment of lease liabilities
(1,073 )
(971 )
(3,133 )
(2,902 )
Other financial liabilities incurred
Transactions with shareholders:
Dividends distributed to shareholders of DSV A/S
(1,533 )
(1,424 )
Purchase of treasury shares
(819 )
(4,211 )
(3,347 )
(11,441 )
Sale of treasury shares
Other transactions with shareholders and non-controlling interests
(25 )
(5 )
Cash flow from financing activities
(3,709 )
(4,704 )
(4,911 )
(14,176 )
Cash flow for the period
(203 )
(1,124 )
(1,341 )
Cash and cash equivalents beginning of the period
Cash flow for the period
(203 )
(1,124 )
(1,341 )
Currency translation
(191 )
(133 )
(238 )
(223 )
Cash and cash equivalents end of period
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)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Free cash flow
Acquisition of subsidiaries and activities
Special items
Repayment of lease liabilities
(1,073 )
(971 )
(3,133 )
(2,902 )
Adjusted free cash flow
Page 19 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Statement of financial position
Assets (DKKm)
30.09.2024
31.12.2023
30.09.2023
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)
30.09.2024
31.12.2023
30.09.2023
Share capital
Reserves
(1,811 )
(718 )
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 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
Statement of changes in equity at 30 September 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
(1,097 )
(1,008 )
(1,008 )
Total comprehensive income for the period
(1,097 )
Transactions with shareholders and
non-controlling interests:
Share-based payments
Tax on share-based payments
Dividends distributed
(1,533 )
(1,533 )
(25 )
(1,558 )
Purchase of treasury shares
(3 )
(3,344 )
(3,347 )
(3,347 )
Sale of treasury shares
Capital reduction
(5 )
Dividends on treasury shares
Other adjustments
-
-
(20 )
(20 )
(6 )
Total equity transactions
(5 )
(3,653 )
(3,654 )
(11 )
(3,665 )
Equity at 30 Septemper 2024
(1,811 )
Statement of changes in equity at 30 September 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
(206 )
(76 )
(72 )
Total comprehensive income for the period
(206 )
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
(9 )
(11,432 )
(11,441 )
(11,441 )
Sale of treasury shares
Dividends on treasury shares
Other adjustments
(4 )
(4 )
Total equity transactions
(6 )
(10,664 )
(10,670 )
(20 )
(10,690 )
Equity at 30 September 2023
Page 21 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 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 consolidated financial statements in
the 2023 DSV Annual Report to which we refer.
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 Q3 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
75,474
70,726
29,569
26,737
19,230
16,538
(681)
256
123,592
114,257
Intersegment revenue
274
392
1,384
2,043
294
523
(1,952)
(2,958)
-
-
Divisional revenue
75,748
71,118
30,953
28,780
19,524
17,061
(2,633)
(2,702)
123,592
114,257
Direct costs
57,455
51,127
24,994
22,857
11,960
10,022
(3,003)
(3,120)
91,406
80,886
Gross profit
18,293
19,991
5,959
5,923
7,564
7,039
370
418
32,186
33,371
Other external expenses
2,754
2,668
950
1,084
1,352
1,326
(1,574)
(1,390)
3,482
3,688
Staff costs
5,894
5,971
2,781
2,658
1,962
1,800
1,676
1,567
12,313
11,996
Operating profit before amortisation,
depreciation (EBITDA) before special
items
9,645
11,352
2,228
2,181
4,250
3,913
268
241
16,391
17,687
Amortisation and depreciation
860
871
675
639
2,453
2,168
243
236
4,231
3,914
Operating profit (EBIT) before special
items *
8,785
10,481
1,553
1,542
1,797
1,745
25
5
12,160
13,773
Condensed statement of financial position
Total assets
81,981
82,478
26,595
25,220
35,414
32,135
14,336
10,840
158,326
150,673
Total liabilities
51,932
53,281
20,036
18,571
29,121
25,012
(15,006)
(16,640)
86,083
80,224
* 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 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
5 Revenue
EMEA
Americas
APAC
Total
Services and geographical segmentation of revenue
(DKKm)
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Air services
5,086
4,754
3,857
3,195
5,109
3,742
14,052
11,691
Sea services
7,276
4,828
4,478
3,441
2,610
1,952
14,364
10,221
Road services
9,016
8,190
951
846
-
-
9,967
9,036
Solutions services
4,551
3,522
1,246
1,222
822
794
6,619
5,538
Total
25,929
21,294
10,532
8,704
8,541
6,488
45,002
36,486
Non-allocated items and eliminations
(907)
(910)
Total revenue
44,095
35,576
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
15,323
15,711
10,872
11,362
13,389
11,049
39,584
38,122
Sea services
18,008
16,053
11,598
10,982
6,558
5,961
36,164
32,996
Road services
28,142
26,130
2,811
2,650
-
-
30,953
28,780
Solutions services
13,468
11,064
3,653
3,550
2,403
2,447
19,524
17,061
Total
74,941
68,958
28,934
28,544
22,350
19,457
126,225
116,959
Non-allocated items and eliminations
(2,633)
(2,702)
Total revenue
123,592
114,257
6 Special items
Special items are used in connection with the presentation of
profit or loss for the period to distinguish consolidated operating
profit from exceptional items, which by their nature are not
related to the Group’s ordinary operations or investment in
future activities.
For the first nine months of 2024, special items totalled DKK 124
million, comprising restructuring and reorganisation costs related
to a company-wide operational efficiency programme.
YTD 2024
(DKKm)
Reported statement of
profit or loss
Special items
Adjusted statement of
profit or loss
Revenue
123,592
-
123,592
Direct costs
91,406
9
91,415
Gross profit
32,186
(9)
32,177
Other external costs
3,482
27
3,509
Staff costs
12,313
50
12,363
Operating profit before amortisation and depreciation
16,391
(85)
16,306
Amortisation and depreciation
4,231
39
4,270
Operating profit
12,160
(124)
12,036
Special items, costs
124
(124)
-
Financial income
129
-
129
Financial expenses
1,649
-
1,649
Profit before tax
10,516
-
10,516
Page 23 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 2024
7 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 September 2024
31 December 2023
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets:
Currency derivatives
54
54
37
37
Trade receivables
27,136
27,136
22,296
22,296
Other receivables
7,509
7,509
6,744
6,744
Cash and cash equivalents
8,541
8,541
6,452
6,452
Financial assets measured at amortised costs
43,186
43,186
35,492
35,492
Financial liabilities:
Currency derivatives
4
4
-
-
Issued bonds measured at amortised cost
23,471
20,838
21,450
18,364
Overdraft and credit facilities
703
703
677
677
Trade payables
14,947
14,947
13,111
13,111
Financial liabilities measured at amortised cost
39,121
36,488
35,238
32,152
Page 24 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1141 – 23 October 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
nine-month period ended 30 September 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 September 2024 and the
profit or loss and cash flows of the Group for the nine-month period ended 30 September 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: