The DSV Group has reported higher earnings in Q1 2025 compared to the same period last year, despite operating in volatile and uncertain markets.
It noted that the earnings growth was driven by improved gross profit, particularly in DSV’s Air and Sea Division.
Gross profit for the period improved by 6.2 per cent and the EBIT, before special items, was 4.8 per cent higher compared to the same period last year.
The quarterly figures also showed strong adjusted free cash flow generation.
As a result of the preliminary expected contribution from its purchase of Schenker, finalised on 30 April 2025, DSV has upgraded its full-year 2025 guidance for EBIT before special items.
The upgraded EBIT figures rise from 15.5-17.5 billion DKK (€2.08-2.35 billion) to 19.5-21.5 billion DKK (€2.61-2.88 billion).
The underlying full-year guidance for DSV stand-alone is unchanged.
DSV Group CEO Jens H. Lund said: “I am pleased with the positive financial performance and higher earnings growth during the first quarter of 2025 despite the current market uncertainties related to global trade.
“Our performance confirms the strength and flexibility of our business model and our ability to support our customers’ global supply chains, and we have seen continued positive contribution from our commercial focus.
“The completion of the Schenker transaction and the upcoming integration mark a significant milestone in our growth strategy, which, combined with our continued strong commercial focus on organic growth and a flexible business model, will support our continued performance amid volatile and uncertain market conditions.”
While market conditions in Q1 2025 were impacted by uncertainties related to the macroeconomic outlook, the geopolitical landscape, and trade tariffs, DSV’s positive earnings growth for this quarter was driven by higher gross profit of 9.5 per cent in the Air and Sea Division.
During the quarter, that Division continued the positive commercial development, growing the customer pipeline and activities with both large and mid-sized customers.
Air freight volume for Q1 2025 was on par with the same period last year, as growth was negatively impacted by extraordinarily large air freight volumes with a few customers in the same period last year.
DSV reported that sea freight volumes grew 3 per cent compared to the same period last year, in line with the estimated market growth.
The company’s Road Division reported lower EBIT, before special items, compared to last year, which was expected due to the overall weaker market conditions and cost inflation, while earnings improved sequentially compared to Q4 2024.
Revenue decreased slightly compared to last year with relatively stable gross profit due to a slight increase in freight rates and the focus on productivity.
However, higher costs, primarily due to increased depreciations related to new warehouses, resulted in a 6.3 per cent decrease in EBIT before special items in Q1 2025 compared to last year.
In other news DSV finalises Schenker acquisition.
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