Danish transport and logistics company, DSV, said it has delivered a solid set of results amid geopolitical uncertainty and disruption in global freight markets.
DSV reported a gross profit for 2024 of 42,974 million DKK or approx. 5,762 million euros (-1.2 per cent).
Operating profit before special items was 16,096 million DKK or approx. 2,158 million euros (-8.4 per cent).
“The lower earnings were expected, as last year’s earnings were positively impacted by extraordinary market conditions, especially in the first half of 2023,” said DSV Group CEO, Jens Lund.
“While the average gross profit per unit in the Air & Sea division normalised in 2024, we saw improved activity levels and volume growth in all transport modes.
“In competitive markets, we delivered a strong performance and gained market share across all three divisions.”
Lund mentioned several supply chain disruptors including regional unrest in the Middle East, high interest rates and inflation, European road freight impacted by reduced demand and heightened competition as well as mitigating increased trade tariffs in the US by late 2024.
DSV has also committed to a revised commercial approach to enhance its value proposition with a stronger customer focus.
“We strengthened our network services for the European road and global air and sea freight markets as well as enhanced our global footprint in Solutions,” said Lund.
“Our strategy is to continue to expand and improve our network to provide the best service for our customers based on digitalised solutions. These commercial and operational initiatives contributed to strong momentum and market share gains across all three divisions.”
In September 2024, DSV announced the acquisition of Schenker for 14.3 billion euros.
It was also the largest transaction than all previous acquisitions combined.
“By combining two strong companies, we will create a world-leading player in our industry with a strong offering across all three divisions, enabling us to drive organic growth and offer more comprehensive solutions to our customers,” said Lund.
“We believe that the Schenker business is an excellent commercial and operational fit for all our three divisions.
“With our organisational setup and new commercial approach, we are in a strong position to support our customers during the integration and to grow the combined business organically.
“We are excited to welcome approximately 86,600 Schenker employees to the DSV family, and we look forward to getting them onboard.”
In addition to its growth ambitions, DSV is also committed to achieving its net-zero commitments.
“We saw good sustainability progress during 2024, which was in part driven by our internal Carbon Fee Fund, providing financing for sustainability initiatives,” said Lund.
“We are also working closely with our customers on supply chain optimisation, and we have integrated a carbon dioxide footprint on customer invoices in all key systems.
“In 2024, we saw 10.7 per cent reductions in our scope 1 and 2 emissions, with our decarbonisation roadmap for scope 1 and 2 being positioned well for our 2030 targets.
“Our Scope 3 emissions increased 10.5 per cent, driven by increased activity levels and extended sailing distances due to the Red Sea situation.
“Beyond our environmental commitments, we have initiated several policies and initiatives, including more ambitious global targets for women in management positions. This signals our commitment to ensuring a strong pipeline of diverse management talent.”
.jpg){kind=small}
