DSV’s revenue in the fourth quarter fell by 1.3% compared to the third quarter, amounting to DKK 43.514 billion (EUR 5.83 billion). For the full year, the company’s revenue in 2024 rose to DKK 167.1 billion (EUR 22.4 billion), up from DKK 150.7 billion (EUR 20.2 billion) in 2023.
“We delivered solid financial results for 2024, in line with our expectations, and returned to earnings growth in the second half of the year. We successfully executed on our strategy and grew our volumes ahead of the market, driven by our commercial initiatives and supporting our customers overcome supply chain challenges,” said Jens H. Lund, Group CEO.
DSV experienced strong demand for air and sea freight last year, driven by positive macroeconomic conditions, particularly in the United States. These favourable market conditions led to organic volume growth of 7% in both segments, surpassing forecasts for these markets.
The road freight segment faced challenges due to a weakening economy, which affected freight rates and margins.
“Reduced macroeconomic activity, particularly in the European automotive sector, combined with rising supplier costs, posed significant challenges. Despite this, the division achieved revenue growth of 6%,” DSV explained.
The Solutions division, which provides planning, new technologies, and innovative solutions, reported stable gross profit growth of 0.8%, but EBIT declined by 12.4% in Q4 2024 due to increased warehousing capacity and the ramp-up of new sites.
Significant decline in road transport profits
DSV’s profit in the air and sea transport sector fell by 11.17% in 2024, decreasing from DKK 13.36 billion (EUR 1.79 billion) in 2023 to DKK 11.88 billion (EUR 1.59 billion). In road transport, the decline was slightly smaller, at 7.06%. This segment recorded a profit of DKK 1.864 billion (EUR 250 million), which represents a EUR 19 million drop compared to 2023.
However, in the fourth quarter of 2024, these trends reversed. While profits from air and sea freight increased by 7.77% to DKK 3.103 billion (EUR 416 million), road transport suffered a significant decline of 33.40%, falling to DKK 311 million (EUR 41.68 million). This was partly due to the difficult situation in the European automotive industry. In the Solutions sector, profits in the last quarter of the year dropped by 12.95% to DKK 531 million (around EUR 71 million).
Outlook for 2025
Excluding the impact of the announced DB Schenker acquisition—expected to be finalized in the second quarter of 2025—DSV forecasts an operating profit (EBIT) of between DKK 15.5 billion and 17.5 billion (EUR 2.08 billion and EUR 2.35 billion) for the full year 2025.
The outlook for the air and sea freight market assumes steady global volume growth of around 3%, in line with the global GDP forecast, despite ongoing macroeconomic and geopolitical uncertainties.
“For the road segment, we expect flat to low single-digit market growth, with market conditions remaining weak in the first half of the year. Gross profit margins in the road segment are expected to remain stable or improve slightly compared to 2024. The contract logistics segment is expected to achieve low to mid-single-digit growth rates,” the company stated.
In 2025, DSV Solutions will continue to focus on improving warehouse utilization rates as part of its commercial initiatives.
Integration with DB Schenker
During the presentation of its financial results for 2024, DSV also disclosed some details about the planned integration with DB Schenker.
CEO Jens H. Lund admitted that revenue is expected to decline during the integration process.
“If we look at organic growth during the integration period, it is usually slightly lower than what would normally be achievable. When we acquire a company, we typically anticipate losing some revenue as well,” Lund explained.
He acknowledged that the group lost significant volumes in its previous acquisitions—Panalpina in 2019 and GIL in 2021.
“As a result of these acquisitions, DSV lost some volume—perhaps even more than necessary. However, we believe that the strategy we have developed for DB Schenker can help minimize volume losses,” Lund stated at a press conference on Tuesday.
“The acquisition of DB Schenker will have the greatest impact on the road division. Since 41% of Schenker’s revenue comes from road transport, the acquisition will enhance our service offering and generate significant operational synergies. The road division will become a leading player in Europe and will also benefit from increased road transport operations in the APAC region (Asia-Pacific) and the Americas,” DSV reported in its financial statement.
DSV’s concerns about potential tariffs
DSV is concerned that potential trade tariffs could slightly dampen demand, potentially reducing the company’s profits this year. The company is closely monitoring geopolitical developments, including uncertainty surrounding tariff policies.
“The effect is difficult to predict, but there could be a slight drop in demand. It is not unthinkable that this will happen,” said Michael Ebbe, DSV’s Chief Financial Officer, in an interview with Reuters.
He added that some customers have already adjusted their ordering schedules while waiting for more clarity, but the overall impact remains marginal.
DSV also highlighted uncertainties related to the ongoing risk of attacks in the Red Sea, as well as potential tariff increases, both of which could affect profitability.