DSV's 2024 Annual Report: A Year of Resilience and Growth

DSV A/S, a leading global transport and logistics company, has released its 2024 annual report, highlighting a year of resilience and growth despite challenging market conditions. The company's strong performance was driven by its strategic focus on organic volume growth and commercial initiatives, which contributed to solid financial results and earnings growth in the second half of the year.

Key highlights from DSV's 2024 annual report include:

1. Revenue and Gross Profit: DSV's revenue for the full year 2024 was DKK 167.106 billion, with gross profit of DKK 42.974 billion. Despite a slight decrease in gross profit compared to 2023, the company's earnings growth returned in the second half of the year.
2. EBIT before special items: DSV's EBIT before special items for the full year was DKK 16,096 million, within the recent guidance range of DKK 16,000-17,000 million. This figure reflects the company's strong performance and ability to navigate challenging market conditions.
3. Adjusted free cash flow: DSV's adjusted free cash flow for the year was DKK 5,550 million, impacted by increased net working capital driven by higher activity levels and freight rates combined with temporary capital tied up in projects under development.
4. Diluted adjusted earnings per share: Diluted adjusted earnings per share for 2024 was DKK 51.6 per share, compared to DKK 58.7 in the previous year.
5. Full-year 2025 guidance: DSV has provided a full-year 2025 guidance for EBIT before special items of DKK 15,500-17,500 million, excluding the impact from the announced acquisition of Schenker.



DSV's strong performance in 2024 was driven by several key factors:

1. Market share gains: The company gained market share across all three divisions (Air & Sea, Road, and Solutions) throughout the year, contributing to positive organic above-market growth.
2. Stabilization of earnings per unit: In Q2 2024, DSV's Air & Sea division saw a stabilization of gross profit per unit, indicating a steady operational performance in a competitive and fluctuating market.
3. Increased productivity: DSV increased productivity in all three divisions, as mentioned by Group CEO Jens H. Lund in the Q2 2024 financial report. This improvement in operational efficiency has contributed to the company's solid financial performance.
4. Mergers and acquisitions (M&A): DSV's strategic focus on M&A has also played a significant role in its growth. The announced acquisition of Schenker, expected to close in Q2 2025, is a testament to the company's commitment to expanding its footprint and reinforcing its platform for future growth.

In conclusion, DSV's 2024 annual report highlights a year of resilience and growth, driven by the company's strategic focus on organic volume growth and commercial initiatives. Despite challenging market conditions, DSV delivered solid financial results and earnings growth in the second half of the year. The company's full-year 2025 guidance reflects its confidence in continued growth and success in the global transport and logistics industry.