DFDS (DFDS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 9% year-over-year to DKK 7,580m, but EBIT fell 28% to DKK 519m due to market headwinds, cost pressures, and underperformance in the Nordic cold chain unit.

• Adjusted free cash flow for Q2 was DKK 724m, with the 2024 target maintained at DKK 1.5bn.

• Strategic priorities include protecting ferry market positions, turning around Logistics earnings, and advancing the green transition.

• Key priorities for H2 are to address margin pressure, improve customer engagement, and progress on sustainability targets.

Financial highlights

• Q2 revenue up 9% to DKK 7,580m, with 3% organic growth after adjusting for acquisitions and ETS.

• Q2 EBIT fell 28% to DKK 519m; EBITDA declined 10% to DKK 1,232m.

• Q2 profit after tax was DKK 288m, down 46% year-over-year.

• Adjusted free cash flow for Q2 was DKK 724m (+21% year-over-year); last twelve months at DKK 2.3bn, positively impacted by sale and leaseback of three freight ferries.

• Operating cash flow rose 32% to DKK 1.3bn, driven by strong working capital performance.

Outlook and guidance

• 2024 EBIT guidance lowered to DKK 1.7–2.1bn (from DKK 2.0–2.4bn); revenue growth guidance unchanged at 8–11%.

• Adjusted free cash flow target of DKK 1.5bn for the year is maintained; operating capex reduced to DKK 1.5bn.

• European growth rebound not expected before Q4; margin pressure in transport and logistics expected to persist in H2.

• EBIT in H2 2024 will be impacted by absence of one-off gains from 2023.