In the case of DSV, the Danish company’s gross profit was down 14.2% and EBIT before special items 31.6% from last year’s “extraordinary results”.
DSV nonetheless maintains this compares favourably to pre-pandemic levels.
Other results highlighted by DSV in its H1 announcement are as follows:
- The Air & Sea division saw a 35.7% decrease in EBIT before special items for H1 2023, impacted by lower freight volumes and rates compared to the same period last year.
- The Solutions division experienced reduced activity in H1 2023, reporting a 23.4% decline in EBIT before special items compared to an exceptionally strong H1 2022. The decline was largely due to a slight drop in activity and expansion of warehouse capacity.
- The Road division reported a 2.8% decrease in EBIT before special items. In a market with lower activity across most sectors, the division performed well and gained market share.
- During the first half of 2023, the demand for transport and logistics services has been marked by the macroeconomic situation. In parallel, the logistics markets have quickly normalised after the disruptions in recent years. In a highly competitive market, DSV is reinforcing its commercial efforts and maintaining its ambition of outgrowing the general market while delivering value to customers.
When it comes to the outlook for the rest of the year, DSV says it expects its EBIT before special items to be in the range of DKK 17,000-18,500 million (previously DKK 16,000-18,000 million). This figure is based on the assumption of a gradual improvement in transport volumes.
Commenting on the figures, Jens Bjørn Andersen, Group CEO, said:
“In Q2 2023, we delivered a solid set of results across all three divisions and a strong cash flow. The demand for transport and logistics services is soft, and during the first half of 2023 we have demonstrated our ability to adapt to changing market conditions. The market development outlook is still uncertain, but we see signs of stabilisation and we anticipate gradual improvement in global trade volumes over the next quarters.”
As far as Kuehne+Nagel Group are concerned, the company’s net turnover for the first six months of 2023 was CHF 12.7 billion, EBIT
was approximately CHF 1.1 billion with earnings of CHF 860 million.
Kuehne+Nagel say the figures represent “solid results in a challenging market environment in the first half of 2023″.
Similar to DSV, the company adds that the pandemic-related special economic situation in 2021 and 2022 continued to distort the year-on-year comparisons across the entire range of figures.
Kuehne+Nagel’s gross profit was down year-on-year in its Sea Logistics, Air Logistics and Road Logistics divisions, with the latter faring the best. The company’s Contract Logistics division, however, recorded a 4% year-on-year increase in gross profit.
Commenting on the results, Stefan Paul, CEO of Kuehne+Nagel International AG, said:
“Kuehne+Nagel coped well with the transition from the exceptional economic situation shaped by the pandemic. In a weakened economic environment, Sea and Contract Logistics gained market share and kept earnings stable. In contrast, volumes in Air Logistics declined broadly in line with the market. While our ongoing cost control efforts became more visible in the second quarter of 2023, our strategic path is unchanged with a focus on high-quality logistics services and an extraordinary customer orientation.”
Photos: JOHN DICKINSON, CC BY-SA 4.0, via Wikimedia Commons (left) / WSanda, CC BY-SA 4.0, via Wikimedia Commons (right) – both images cropped