Global logistics specialist DSV has started the year with a strong first quarter – both on the groups level and the »Air & Sea« division. One of the determining factors was an acquisition in 2016.
CEO Jens Bjorn Andersen said, the result brings the company »even closer to our[ds_preview] goal of reaching pre-UTi performance levels and margins. All three divisions have recorded a significant increase earnings in the quarter, which is very satisfactory. In addition to following our integration plan, we have increased our sales efforts in order to secure future market share gain.«
For the first three months of the year, DSV reported a growth of revenue from 15,3 billion DKK to 18.2 billion DKK. Profit before tax more than doubled from 319 million DKK to 875 million DKK. Reflecting the recent business and looking to the full year, Andersen added, that an upward adjustment for 2017 is appropriate: »Operating profit before special items is expected to be in the range of 4.3 to 4.6 billion DKK.« The previous expectations were around 4.2 to 4.5 billion DKK.
The quarter was positively effected by alomst one extra month of UTi activities. The company was taken over at the beginning of 2016. The increase in earnings was driven by the realization of integration synergies, it was said.
Higher average freight rates and a growth of transported volumes led to a positive result in the Air & Sea division, too. The sea freight business saw 17 % more containers (TEU) transported for DSV. All in all, 332,778 units were shipped. Net revenue rose from 3.8 billion to 4.4 nillion DKK, gross profit grew from 989 million to 1.08 billion DKK.
