DSV sees airfreight volumes continue to grow

DSV continued to report strong growth in airfreight volumes during the first quarter of the year, while revenues also improved.
The Danish forwarder saw first-quarter airfreight volumes increase by 10.9% year on year to 163,000 tonnes. Last year the company saw airfreight volumes improve by 10.6% year on year, helped by market growth and acquisitions.
DSV said the first-quarter growth was ahead of a market improvement of between 5-6% and was fuelled by increases in its Europe, Middle East and Africa; and Americas export volumes.
Its airfreight growth compares favourably to Panalpina, which registered a 3% increase in the first quarter, but lags behind Kuehne+Nagel’s 21% increase, helped by acquisitions.
Airfreight revenues during the quarter increased by the smaller amount of 4.4% year on year to Dkk4.2bn, putting pressure on gross profits per tonne, which slipped 6.5% to Dkk6,546.
However, on a constant currency basis there would have been a slight improvement in gross profits per tonne of 0.7%.
The overall company (including warehousing and road divisions) saw first-quarter revenues increase by 0.9% to Dkk18.4bn, earnings before interest and tax (ebit) were up 2.4% to Dkk1.5bn and net profits increased by 15% on a year earlier to Dkk769m.
Results were affected by currency fluctuations during the period, the company said. Revenue growth was lowest in its road division where it did not breach the 1% mark.
The company’s chief executive Jens Bjørn Andersen said: “DSV performed well in the first quarter of 2018 and delivered growth in both freight volumes and ebit.
“Based on the good start to 2018 and overall positive market trends we increase the low end of the ebit guidance range for the full-year and launch a new three-month share buyback programme of Dkk1.1bn.”

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