DFDS (DFDS) Q4 2018 earnings summary

Executive summary

• FY 2018 revenue rose 9.7% to DKK 15.717bn; EBITDA before special items increased 10.6% to DKK 2.988bn reported, or DKK 3.589bn restated for IFRS 16.

• Mediterranean expansion, led by the U.N. Ro-Ro acquisition, drove much of the growth; activity slowed in H2 amid weaker trade and economic visibility.

• 2019 guidance called for 10–12% revenue growth and DKK 3.8–4.0bn EBITDA under IFRS 16.

Financial highlights

• Q4 revenue rose 13.1% to DKK 3.955bn; EBITDA before special items increased 19.7% to DKK 688m, and EBIT before special items rose 18.2% to DKK 412m.

• FY EBIT before special items increased 7.1% to DKK 1.909bn; profit after tax was DKK 1.637bn, up from DKK 1.618bn.

• FY depreciation rose DKK 153m, mainly due to U.N. Ro-Ro; finance costs increased DKK 111m to DKK 165m, including DKK 42m in currency losses on Turkish receivables.

• FY special items were a net cost of DKK 49m, including DKK 52m for U.N. Ro-Ro acquisition and integration; Q4 special items were net income of DKK 37m.

Outlook and guidance

• 2019 EBITDA guidance: Ferry DKK 3.425–3.600bn, Logistics DKK 425–450m and non-allocated costs of DKK 50m; revenue growth guidance was 10–12%.

• The DKK 2.5bn 2019 investment plan included newbuildings and terminal expansion; digital development costs could add up to DKK 100m.

• Five growth drivers included Mediterranean expansion, Brexit readiness, three new freight ferries, digital projects and DKK 100m in improvement and efficiency benefits.