DSV achieved a 25% year-over-year revenue increase for the third quarter of 2024, reaching DKK 44.1 billion. This growth was driven by higher volumes across air and sea freight and rising sea freight rates. Notably, DSV did not experience the typical summer dip in volumes, as per an official statement. Profit for Q3 2024 rose slightly to DKK 2.85 billion, compared to DKK 2.8 billion in the same period last year.
“The third quarter of 2024 has been a landmark for our company with the agreement to acquire Schenker, creating a global leader in transport and logistics,” said Jens H. Lund, Group CEO of DSV. He added that the company successfully raised €5 billion in equity from long-term investors, positioning DSV for future growth. The Schenker acquisition is expected to significantly bolster DSV’s global network and service offerings. “We look forward to welcoming our colleagues from Schenker and building a world-class transport and logistics company,” Lund continued.
DSV’s Q3 2024 financial performance showed continued earnings growth, with quarterly gross profit and EBIT before special items increasing year-over-year for the first time since Q3 2022. The growth was fuelled by volume increases across all divisions, particularly air and sea freight. For the first nine months of 2024, DSV’s revenue reached DKK 123.6 billion, marking a 9% increase from the same period last year. However, adjusted earnings for the same period declined by 13% to DKK 8.3 billion, down from DKK 9.6 billion in 2023.
Despite a challenging market landscape impacted by macroeconomic uncertainties and geopolitical tensions in the Middle East and Red Sea regions, DSV delivered positive earnings growth. The company also reported improved free cash flow and narrowed its full-year EBIT guidance for 2024 to DKK 16-17 billion, up from its previous estimate of DKK 15.5-17 billion.
The Air & Sea division continued to perform well, with revenue rising 30% in Q3 2024 to DKK 28.4 billion. EBIT before special items reached DKK 3.3 billion. DSV’s air freight volumes grew by 8% in Q3 2024, primarily driven by increased demand from APAC, particularly in the technology sector. Additionally, the narrowing price gap between sea and air freight resulted in higher conversions from sea to air shipments. Sea freight volumes also grew by 8% in Q3 2024, slightly outperforming the broader market, with strong export volumes out of APAC contributing to this growth.
The Road division reported a revenue increase to DKK 10 billion, while EBIT before special items slightly decreased to DKK 514 million. Despite challenging market conditions, including low demand and pressure on freight rates, the division gained market share, especially on European groupage shipments. The Solutions division saw revenue reach DKK 6.6 billion, with EBIT before special items at DKK 636 million. This growth was driven by a year-over-year increase in order lines, although partially offset by lower warehouse utilisation and higher expansion-related costs.
The acquisition of Schenker, expected to be finalised by Q2 2025, will further enhance DSV’s global network and service offerings. Schenker, with over 86,600 employees across 70 countries and a revenue of €19.1 billion in 2023, is a strong strategic fit for DSV. The deal will strengthen DSV’s presence in key markets such as France and Germany, contributing to operational efficiencies and expanded customer services.
M&A activity remains a core part of DSV’s strategy, combining both organic and inorganic growth to build a more robust company moving forward.
