DSV continues to see double-digit airfreight growth after UTi purchase

DSV Continued to see growth in its airfreight volumes, revenues and gross profits following the acquisition of UTi at the start of this year.
The Denmark-based forwarder saw overall airfreight volumes for the third quarter increase by 84.5% year on year to 147,744 tonnes on the back of the UTi purchase, which was completed at the end of January.
Airfreight revenues for the period also increased, but by the lower 72.5% on last year to Dkr4bn, and gross profits for air were up by 74% to Dkr999bn.
The forwarder said revenues were affected by lower freight rates.
DSV’s overall air and sea division saw net revenue during the third quarter increase 53.9% to Dkr8.3bn and gross profits were up 55.3% to Dkr2.1bn.

“The high net revenue is mainly attributable to UTi having contributed activities to the Division worldwide, with US as the largest single country, but also contributing major activities in Europe, Asia Pacific and Africa,” DSV said.

“Relative to the same period of 2015, the net revenue of both DSV and UTi was negatively affected by low freight rates and exchange rates.”

DSV said the integration of UTi was progressing well: “We expect the main part of the integration to be completed within the first 12 months and the entire integration process to be completed within 24 months after the acquisition.
“The financial synergies are expected to fully materialise within three years after the acquisition.”