DSV’s Q3 air volumes boosted by Agility GIL takeover
26 / 10 / 2021
Image source: DSV
DSV saw its airfreight volumes and revenues grow by double-digit percentage levels during the third quarter of the year on the back of market growth and its Agility GIL takeover.
The forwarder saw its third-quarter airfreight revenues increase by 78.7% year on year during the period to DKr18.4bn and volumes were up by 28.8% to 386,702 tons.
The company said much of the volume increase was down to the inclusion of Agility GIL’s results for the first time.
With the Agility figures stripped out, the company’s airfreight volumes would have increased in line with the overall market, estimated to have grown by around 15-20%.
Revenues grew faster than volumes due to increased prices from carriers.
Jens Lund, who recently moved to the role of chief operating officer from chief financial officer, told Air Cargo News that profitability also increased because of the extra work that is required by the company to manage supply chains in light of capacity constraints and general supply chain disruption.
The company saw its airfreight gross profits for the third quarter increase by 29.1% to DKr2.6bn.
“In airfreight, high demand, airport restrictions (COVID-19restrictions) and limited belly space capacity in passenger planes continue to impact the available capacity and are keeping rates high,” the company said.
“The return of passenger traffic is gradually having a positive impact on capacity due to more belly capacity entering the market, although this is primarily relevant for regional and domestic passenger flights, and we only expect a gradual return of long-haul passenger flights.”
DSV added: “Global supply chains continue to be impacted by inefficiencies caused by the pandemic, impacting both demand and available capacity. For both air and sea, the markets have recovered and, overall, volumes are back at or above 2019 levels.”
For comparison, Kuehne+Nagel saw its airfreight volumes for the period increase by 65% thanks to market growth and its investment in Apex Logistics.
The overall company saw third-quarter revenues increase by 76.2% year on year to DKr49.6bn, EBIT before special items was up 64.1% to DKr4.5bn and profits increased 136.4% to DKr3.2bn.
Jens Bjørn Andersen, Group CEO, said:“In August, we completed the acquisition of Agility’s Global Integrated Logistics business and took over a well-run company and were joined by a team of skilled new colleagues. The integration is off to a good start,and in the coming period our two organisations will be merged into one.
“The transport markets continue to be characterised by disruption and imbalances causing extraordinary challenges for both our customers and us. Under the extraordinary market conditions, we are happy to report solid results across all divisions.”
Once fully integrated, Agility’s GIL business is expected to contribute approximately DKr3bn to the combined EBIT before special items on an annual basis. The integration is expected to be completed by the end of Q3 2022 and the full-year EBIT effect is expected in 2023.
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