Danish transport and logistics company, DSV, is reporting an 11 per cent decline in gross profit for the first quarter of 2023 but is expecting global trade volumes to improve in the coming quarters.
“As anticipated, the demand for transport services and freight rates declined during the first quarter of 2023,” said DSV CEO, Jens Bjorn Andersen.
“Nonetheless, we achieved good results and strong cash flow in all our business areas by providing good customer service and efficiently managing our capacity.”
DSV’s air and sea division reported a 31 per cent decrease in EBIT, compared to the same quarter last year.
The solutions division also reported a 31 per cent decline in EBIT, however the performance of the road division was positive, with results on par with the same period last year.
The world’s third-largest freight forwarder, DSV had benefited from high freight rates in the wake of the pandemic, but cost inflation and high inventories have since prompted them to drop.
They expect global trade volumes to gradually improve over the year and stands by its full-year EBIT guidance to remain in the range of DKK 16,000-18,000 million for 2023.
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