DFDS A/S: Navigating Challenges and Opportunities in 2025

As DFDS A/S prepares for its annual general meeting on Monday, 24 March 2025, at 14:30 CET, investors and stakeholders are eager to understand the strategic initiatives and changes in the Board of Directors that will be discussed. The notice for the meeting, including appendices 1 and 2, provides valuable insights into the company's plans for the coming year.



In 2024, DFDS A/S achieved a 9% increase in revenue, reaching DKK 29.8bn. However, earnings before interest and taxes (EBIT) decreased by 35% to DKK 1.5bn. The company's adjusted free cash flow stood at DKK 1.0bn. Despite these challenges, DFDS A/S remains optimistic about its prospects for 2025, with revenue growth expected to be around 5% and EBIT and adjusted free cash flow both projected to be around DKK 1.0bn.

The company's CEO, Torben Carlsen, acknowledged the specific challenges that need to be resolved in 2025 to deliver a satisfactory earnings level. He highlighted two paths for improving financial performance: protecting and growing the revenue and profits of business units, and resolving three specific focus areas. These include adapting Mediterranean ferry operations to the changed competitive environment, turning the newly acquired Ekol International Transport around to breakeven by year-end 2025, and delivering on logistics turnaround projects initiated in 2024.



DFDS A/S has expanded its network to high-growth regions, supported by nearshoring through acquisitions such as FRS Iberia/ Maroc and Ekol International Transport. Additionally, the company was awarded a 20-year Jersey ferry services concession contract beginning from March 2025. These strategic moves aim to strengthen DFDS A/S's position in the market and drive future growth.

The proposed 2025 Remuneration Policy, outlined in appendix 2 of the notice, focuses on aligning the interests of executives with the long-term success of the business. The policy emphasizes performance-based compensation, with a significant portion of remuneration being variable and tied to specific financial and strategic targets. This approach aims to incentivize executives to work towards enhancing the company's profitability and cash flow generation.

DFDS A/S has proposed to the annual general meeting that no capital is distributed to shareholders in 2025 to prioritize a deleveraging of the capital structure. This decision has potential implications for both shareholders and the company's overall financial health. While shareholders may be disappointed by the reduction in dividends, the retention of capital allows DFDS A/S to invest in core operations and improve its long-term financial performance. By prioritizing deleveraging, the company aims to enhance its financial flexibility and resilience.

In conclusion, DFDS A/S is navigating a challenging environment in 2025, with a focus on improving financial performance and resolving specific focus areas. The company's strategic initiatives, including network expansion and the proposed 2025 Remuneration Policy, aim to drive long-term growth and success. The proposed capital distribution strategy, while potentially impacting shareholders in the short term, aligns with the company's focus on enhancing its overall financial health and resilience. As DFDS A/S looks ahead to the annual general meeting and beyond, investors and stakeholders can expect the company to continue its efforts to navigate challenges and capitalize on opportunities in the market.