DSV reports US$5.5 billion revenue in 2024 first quarter
COPENHAGEN : DSV kicked off 2024 on a high note, securing increased market share across all divisions. The first-quarter results are as expected and signify the stabilization of freight markets, said the company.
During the first three months of the year, DSV smoothly transitioned its executive, divisional, and commercial leadership, assembling a highly experienced team ready to execute its strategy.
In Q1 2024, revenue totalled US$5.5 billion, down from US$5,8 billion in the previous year. When adjusted for constant currencies, revenue witnessed a 5% decline compared to the same period last year. Also, in the Air & Sea division, revenue declined by 11.5%.
In the same period, gross profit totalled US$1.4 billion, down from US$1.6 billion in the previous year. As anticipated, gross profit declined by 8.6% in constant currencies compared to the same period last year. This decrease primarily stems from the normalization of freight rates and yields within the Air & Sea division.
While mergers and acquisitions remain central to DSV’s plans, the company emphasizes sustainable growth. Maintaining DSV’s core values of accountability and ownership, the new leadership team is intensifying its customer-centric approach across various industries and enhancing the global network.
“We are off to a good start delivering strong financial results in the first quarter of 2024, and I’m particularly satisfied that we are gaining market shares in all three divisions. We do this in a market that is normalising after a few very volatile years following the COVID-19 pandemic. We have also completed the leadership changes, the organisation has settled, and together with the new but highly DSV-experienced leadership team we are fully focused on executing our strategy supporting organic growth as well as M&A. Doing this, we ensure a clear continuation and maintaining the DNA that has always been a driving force in DSV,” stated Jens H. Lund, Group CEO.
Additionally, DSV reiterates its 2024 forecast as detailed in the 2023 Annual Report. Operating profit (EBIT) before special items is projected to fall within US$2.1 billion and US$2.4 billion, while the effective tax rate is anticipated to hover around 24%.