Freight forwarding giant DSV saw a drop in profits in 2024
On February 4, freight forwarding giant DSV announced its 2024 results and said the results were solid and in line with expectations.
In 2024, DSV achieved revenue of DKK 167.106 billion (~ USD 23.244 billion), an increase of 11.7%. Profit before interest, tax and special items (EBIT) was DKK 16.096 billion (USD 2.239 billion), down 8.4% year-on-year.
DSV analysis said that the increase in revenue was mainly due to the air and sea segment revenue growth of 14% year-on-year, business volume and freight levels increased. The decline in EBIT was mainly due to lower earnings levels in the first half of 2024.
In the air and sea segment, the revenue in 2024 was DKK 104.496 billion (about US $14.535 billion), an increase of 14.0%. EBIT was 11.888 billion Danish kroner ($1.654 billion), down 9.9% year on year. During the same period, DSV seagoing volume was 2.686 million TEU, up 6.6% year-on-year.
Commenting on the 2024 results, Jens H. und, CEO of DSV, said: "We delivered solid financial results in line with expectations in 2024 and returned to profitable growth in the second half of the year. We have successfully executed on our established strategies and driven volume growth through commercial initiatives to help our customers meet their supply chain challenges. At the same time, with the acquisition of DB Schenker, we will strengthen the foundation for future growth."
In 2024, DSV spent 14.3 billion euros (about $15.86 billion) to acquire another freight forwarding giant, DB Schenker.
DSV revealed in the results report that the acquisition of DB Schenker will be completed in the second quarter of 2025, and after the strategic integration of the two sides, the market share will reach 6% to 7%, which is expected to surpass DHL and Kuehne + Nagel and become the core leader of the freight forwarding industry. At the same time, the combined company will have revenues of more than DKR 300 billion ($41.73 billion), annual sea traffic of more than 4 million TEU and air traffic of about 2.5 million tons.
For the development prospects, DSV said that it will continue to provide efficient and reliable services to customers in the case of tight supply chains through continuous network expansion and focus on the development of LCL (less than container load) business.
Looking ahead to 2025, DSV believes its full-year EBIT will be between DKK 15.5 billion and DKK 17.5 billion (between USD 2.156 billion and USD 2.434 billion, excluding DB Schenker results). Despite the current macroeconomic and geopolitical uncertainties, DSV expects air and sea traffic volumes to continue to grow by around 3%, in line with global GDP forecasts.