DFDS (DFDS) Q3 2017 earnings summary

Executive summary

• Q3 revenue rose 3.3% to DKK 3,922m; EBITDA before special items reached DKK 976m, near the prior-year record.

• European freight growth, led by the North Sea, offset weaker passenger results; LTM ROIC before special items rose to 18.1%.

• FY 2017 EBITDA guidance narrowed to DKK 2,650–2,750m, with the result expected to exceed the 2016 record.

Financial highlights

• Revenue was DKK 3,922m, up 3.3% reported and 3.1% adjusted for currency, acquisitions, the Belfast divestment and bunker surcharges.

• EBITDA before special items was DKK 976m versus DKK 972m; adjusted for divested Belfast activity, EBITDA increased 1% to DKK 980m.

• EBIT before special items was DKK 742m versus DKK 738m; reported EBIT was DKK 736m after DKK 5m special items. Profit before tax fell 3% to DKK 708m.

• EPS rose 4% to DKK 12.72 from DKK 12.24; free cash flow was DKK 643m after DKK 218m of investments.

Outlook and guidance

• FY 2017 EBITDA guidance narrowed to DKK 2,650–2,750m: Shipping DKK 2,475–2,550m, Logistics DKK 250–275m and non-allocated items DKK -75m.

• Revenue growth outlook was ~3%; investment forecast, including Alphatrans, was DKK 1.6bn, down from DKK 1.8bn after project deferrals.

• Freight markets were expected to grow at least in line with GDP; the UK passenger market was expected to stabilize after adjusting to lower sterling.

• The Calais Jungle closure impact was expected to end in Q4 2017 comparisons; trading remained robust into Q4.