DSV Reports 35% Decline in Revenues for H1 2023
In a soft market environment, the DSV Group achieved good financial results for the first half of 2023.
For H1 2023, revenue amounted to US$11.6 billion, compared to US$18.4 billion last year. In constant currencies, revenue declined 35.4% compared to the same period last year. In Q2 2023, revenue declined 37.8%.
Gross profit was down 14% and EBIT declined 32% compared to last year's extraordinarily strong results (both in constant currencies). Supported by a reduction of net working capital, the Group achieved a strong cash flow for the period.
In the first half of 2023, global trade volumes were in decline – most significantly for air freight – and the freight markets have normalised rapidly after recent years’ disruptions.
By maintaining focus on cost control and strong pricing discipline, DSV achieved a good financial performance across all business areas.
In H1 2023, Air & Sea saw a decline in revenue due to both lower freight rates and lower volumes compared to the same period last year.
While ocean freight volumes showed signs of improvement during Q2 2023, the air freight market remained weak.
From a service perspective, the global freight markets have largely recovered from the disruptions and capacity constraints seen in recent years.
Road and Solutions also reported reduced activity in H1 2023, leading to lower revenue. Still, the two divisions were less impacted by the economic slowdown than the Air & Sea division.