DSV Panalpina posts increased H2 revenues as Agility GIL acquisition continues

By Rachelle Harry

Jens Bjørn Andersen. Image source: DSV Panalpina.

DSV Panalpina has reported increased revenues and operating profits (ebit) in its interim half-year 2021 financial results.

The forwarding giant, which started the process of acquiring Agility Global Integrated Logistics (GIL) earlier this year, said its performance was “driven by 18% growth in gross profit and a high productivity across all divisions”.

Year to date, DSV Panalpina’s revenues increased 27% year on year to DKK71.4bn. Meanwhile, operating profits for the first six months of the year increased by 59% to DKK6.6bn.

The company’s airfreight division recorded a 25.9% year-on-year increase in operating profit in the first six months of the year to DKK27.2bn. Ebit for the division was 14% higher than last year, at DKK5.7.

Airfreight volumes in H1 2021 increased by 5.9% year on year to 685,517 tonnes.

“Growth was driven by export from Asia Pacific and Americas, whereas Europe, Middle East and Africa exports were flat year on year,” the company said.

“Yields continue to be impacted by market situation, but not to the same extent as 2020.

“Return of long-haul belly capacity will only happen gradually during 2022-2024.”

Group chief executive Jens Bjørn Andersen commented: “We are proud to report strong results for the first six months of 2021, where we deliver an ebit result equivalent to our full-year ebit of 2019.

“This is a clear testament to the successful integration of Panalpina and a strong performance by our organisation in an extraordinary market environment.

“The logistics markets continue to be characterised by tight capacity, congestion and low visibility, and we are doing our best to find solutions for our customers and keep their supply chains flowing.”

He added: “We still expect to close the Agility Global Integrated Logistics transaction in Q3 2021. The preparations for the integration are tracking the plans, and we look forward to combining the two global networks and creating an industry leader in logistics.”

Based on its performance in 2021 thus far, DSV Panalpina increased its operating profit outlook for the full-year from between DKK11.8bn and DKK12.5bn, to between DKK125bn and DKK13bn.

“The financial outlook for 2021 is for DSV Panalpina stand-alone and excludes the impact from the acquisition of Agility’s (GIL) business,” the company said.

“The financial outlook will be updated upon closing, which is expected in Q3 2021.”

In addition to its Agility deal, DSV also completed the acquisition of Panalpina in 2019 in a deal worth $5.5bn. 

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