DFDS (DFDS) Q3 2018 earnings summary

Executive summary

• Q3 revenue rose 11.7% to DKK 4,383m and EBITDA before special items increased 7.1% to DKK 1,045m, driven mainly by the U.N. Ro-Ro acquisition.

• Slower European growth, Brexit uncertainty and TRY depreciation pressured volumes and finance costs; FY EBITDA guidance narrowed to DKK 3.0–3.1bn.

Financial highlights

• EBITDA margin was 23.8% versus 24.9%; EBIT was DKK 751m, up 2%, and EBIT before special items was DKK 747m, up 0.8%.

• Profit before tax before special items fell 13% to DKK 622m; reported profit before tax fell 12% to DKK 625m.

• Depreciation increased DKK 65m to DKK 298m, mainly from acquisitions and Digital/IT investment; a ship depreciation change reduced it by DKK 18m.

• Net financing costs increased DKK 98m to DKK 126m, including DKK 70m of TRY-related receivables losses; Q3 special items were net income of DKK 3m.

Outlook and guidance

• FY 2018 revenue growth outlook remained ~10%; EBITDA before special items guidance narrowed to DKK 3,000–3,100m, versus DKK 2,702m in 2017.

• Division EBITDA guidance: Shipping DKK 2,800–2,875m; Logistics DKK 300–325m; non-allocated items DKK -100m.

• Investment guidance fell by DKK 300m to DKK 4.7bn, with terminal and other spending deferred into 2019.

• FY special items were expected to be a net cost of ~DKK 100m, including U.N. Ro-Ro acquisition and integration costs.