DSV Delivers Solid Q3 2023 Results Amidst Slow Recovery of Freight Markets
DSV delivers solid results for the first nine months of 2023. Gross profit was down 15.1% and EBIT 30.6%, which was expected given the challenging market conditions and record earnings achieved last year.
The Air & Sea division saw a 35.7% decrease in EBIT for the first nine months of 2023, and the Solutions division reported a 16.9% decrease in EBIT. The Road division achieved results on level with last year.
A real recovery in global freight volumes does not seem to materialize in 2023, but based on its performance so far, DSV has raised the lower end of its 2023 EBIT guidance, which is now expected to be in the range of US$2.5 billion to US$2.6 billion.
Recently, DSV announced changes to the Executive Board. Group CEO Jens Bjørn Andersen will step down, and Group COO Jens H. Lund will take over as new Group CEO with effect from 30 September 2024. This will not impact DSV's operations or the execution of its strategy.
Jens Bjørn Andersen, Group CEO said: "In markets characterized by soft freight volumes and declining rates, we delivered solid results during the first nine months of 2023.
"The results reflect our flexible business model and, not least, our dedicated employees, who continue to deliver good customer service and efficiently manage our capacity.
"A real recovery in global freight volumes does not seem to materialize in 2023, but based on the performance so far, we raise the lower end of our 2023 EBIT guidance.
"Finally, I will add a comment to the recently announced changes to the Executive Board, which will have effect in September 2024. This will not impact our operations or the execution of our strategy - it will be business as usual, and the senior management team is committed to securing a good handover process."