The adverse impact of the general slowdown in global trade was particularly evident in DSV’s Air & Sea division, which reported a significant 33.1% decline in EBIT before special items. Similarly, Solutions experienced a decrease of 10.7%, while the Road division managed to maintain its EBIT level compared to the previous year.
Breaking down the financial performance further, for the fourth quarter of 2023, DSV reported revenue of DKK 36,528 million (approx €4.9 million), reflecting a decline of 26.3% in constant currencies compared to the same period in 2022, primarily attributed to lower freight rates and declining volumes in the Air & Sea division.
Gross profit for Q4 2023 amounted to DKK 10,447 million (approx €1.4 million), representing a decline of 7.5% in constant currencies compared to Q4 2022. The decrease was primarily driven by lower air volumes and a continued normalization of gross profit yields.
Furthermore, EBIT before special items for Q4 2023 stood at DKK 3,950 million (approx €529.476), marking a decline of 13.9% in constant currencies compared to the same period in the previous year. Despite the challenges, all three divisions performed in line with expectations. In the Air & Sea division, the decline in gross profit was partially offset by cost reductions, while both Road and Solutions divisions achieved growth in EBIT.
For the full year 2023, DSV’s EBIT before special items amounted to DKK 17,723 million (approx €2.4 million), falling within the guidance range of DKK 17,500-18,500 million (approx €2.3-2.5 million).
Despite these challenges, outgoing CEO Jens Bjørn Andersen expressed confidence in DSV’s ability to adapt to changing market conditions.
“DSV delivered solid financial results for 2023, in line with our expectations. In a market characterised by declining demand for transport services across most markets, we demonstrated our ability to adapt to changing market conditions, and our dedicated employees continued to deliver excellent customer service. During 2023, we were happy to announce an exclusive logistics joint venture with NEOM Company, and we have continued the work to strengthen our network services and industry expertise. We also made important progress on the sustainability agenda, developing roadmaps for our decarbonisation efforts,” Andersen said.
At the same time as the results were published, the company also announced that Group CEO Jens Bjørn Andersen was stepping down with immediate effect and that Jens H. Lund had been appointed as the new Group CEO.