DSV airfreight outpaces market on UTi acquisition
19 / 06 / 2017
DSV recorded improvements in profits, revenues and airfreight demand during the first quarter of the year as it continued to benefit from its acquisition of UTi and market growth.
The Copenhagen-headquartered freight forwarder saw first-quarter airfreight demand improve by 20% year on year to 147,439 tonnes. The forwarder estimates that the overall market grew by 6% during the period.
Rival Panalpina registered an airfreight demand improvement of 8% for the period while Kuhne+Nagel was up by 15.5%.
Airfreight revenues at the company improved by 25% on last year to Dkr4bn and air gross profit was up by 16.3% to Dkr1bn.
The overall air and sea division recorded a revenue improvement of 20.1% to DKr8.5bn and earnings before interest and tax (EBIT) increased to DKr690m from DKr414m last year.
DSV acquired UTi during the first quarter of last year and as a result one month of that company’s takings and volumes are included in this year’s results.
The forwarder also benefitted from higher freight rates, while EBIT margins are improving as it continues with the integration of UTi and benefits from the synergies created by the deal.
Since the acquisition of UTi, DSV has focused on the integration of the new activities and in certain cases also on improving profits on low margin business.
The organisation has now intensified its focus on sales and gaining market share, which is expected to materialise in the course of 2017.
The overall DSV company saw first-quarter revenues increase by 19% year on year to DKr18.2bn and profits were up 187% to DKr669m.
Results were positively affected by property transactions in the road division totalling DKr125m.
DSV chief executive Jens Bjørn Andersen said: “A very strong set of first-quarter numbers brings us even closer to our goal of reaching pre-UTi performance levels and margins.
"All three divisions have recorded a significant increase in earnings in the quarter, which is very satisfactory. In addition to following our integration plans, we have increased our sales efforts in order to secure future market share gains.”