DSV (DSV) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered sequential growth in gross profit and EBIT, driven by positive volume growth and stable yields across all divisions, despite year-over-year declines.

• Market share gains achieved in Air & Sea, Road, and Solutions, supported by strong operational efficiency initiatives.

• Full-year 2024 EBIT guidance narrowed to DKK 15.5–17 billion, reflecting confidence in continued performance.

• New DKK 1.5 billion share buyback program announced for the next quarter, supporting capital allocation policy.

• Operational efficiency program accelerated, with expected savings of DKK 750 million phased in over coming quarters.

Financial highlights

• Q2 2024 revenue rose 9.6% year-over-year to DKK 41,157 million; gross profit declined 4.0% year-over-year but increased sequentially.

• EBIT before special items for Q2 2024 was DKK 4,099 million, down 12.4% year-over-year but up 12.6% sequentially.

• Cash flow from operating activities in H1 2024 was DKK 4,218 million, with free cash flow at DKK 3,732 million.

• Over DKK 4 billion allocated to shareholders so far in 2024 through buybacks and dividends.

• Net working capital increased, mainly due to higher freight rates and property projects, but is expected to stabilize.

Outlook and guidance

• Full-year 2024 EBIT before special items guidance narrowed to DKK 15.5–17.0 billion, with special items of DKK 650 million expected in H2 related to operational efficiencies.

• Operational efficiency initiatives of DKK 750 million to have full-year impact in 2025.

• Air and sea markets expected to grow 3–4% in 2024; Road to remain flat or low growth; Solutions to see higher growth.

• Road and Solutions divisions expected to maintain or slightly improve performance despite tough market conditions.

• Effective tax rate expected at approximately 24%.