DFDS (DFDS) Q3 2019 earnings summary

Executive summary

• Q3 revenue rose 2% to DKK 4,472m; EBITDA before special items was flat at DKK 1,195m despite weaker UK-linked trade.

• Q1–3 revenue increased 7% to DKK 12.583bn and EBITDA before special items rose 4% to DKK 2.861bn.

• Turkey–Europe trade recovered, while Mediterranean operating challenges prompted route and terminal restructuring at the start of Q4.

Financial highlights

• Q3 EBIT before special items fell 5.7% to DKK 718m; margin declined to 16.1% from 17.4%.

• PBT before special items rose 4% to DKK 647m; reported PBT was DKK 645m, up 3%.

• Profit after tax rose 5% to DKK 631m; EPS increased 4.5% to DKK 11.00 from DKK 10.52.

• Finance costs decreased to DKK 72m from DKK 140m; depreciation increased DKK 42m, mainly due to docking timing and Mediterranean expansion.

• Ferry EBIT fell 6% to DKK 696m; Logistics EBIT declined 2% to DKK 47m, while adjusted comparisons showed improvement across its three units.

Outlook and guidance

• FY 2019 revenue growth guidance narrowed to ~6% from 6–8%; EBITDA before special items guidance narrowed to DKK 3.55–3.75bn from DKK 3.5–3.8bn.

• EBITDA guidance midpoint was unchanged; division guidance was Ferry DKK 3,175–3,325m, Logistics DKK 425–475m and non-allocated items DKK -50m.

• FY 2019 investments were forecast at DKK 2.4bn, down DKK 400m from DKK 2.8bn; most of the reduction was expected to shift to 2020.

• Q4 started well and Turkey–Europe trade was firming; UK visibility remained low, with risk of a renewed slowdown.

• The 2023 EBITDA ambition was DKK 5.5bn versus DKK 3.6bn in 2018, with contributions expected from organic growth and initiatives, Mediterranean business and acquisitions.