DSV profit zooms 71% in 2021, air & sea ops report 82% revenue growth
The integration of Agility’s Global Integrated Logistics (GIL) is expected to be completed in Q32022.
All three business areas – air & sea, road and solutions – contributed to the growth of global supply chain services provider DSV in 2021.
DSV reported 59 percent growth in revenue at DKK 182.3 billion (approximately $28 billion) and 71 percent growth in operating profit at DKK16.2 billion ($2.5 billion), an official statement said.
DSV, while continuing its growth strategy, had acquired Agility's Global Integrated Logistics (GIL) in August 2021, adding scale to the global network and strengthening DSV's presence in the Middle East and South-East Asia, the statement added.
"2021 has been a good – but also challenging – year for DSV," says Jens Bjørn Andersen, Group CEO, DSV. "With the acquisition of Agility's business, we have once again executed on our growth strategy. We are proud that GIL is now part of DSV, and the integration is progressing well. Supply chain disruptions, port congestion and record-high freight rates have been major themes during 2021, and our teams have worked hard to find solutions and move the cargo for our customers."
The integration of GIL is expected to be completed in Q3 2022.
Air & sea operations recorded a growth of 82 percent for the full year to DKK 131.9 billion ($20.3 billion), and EBIT was up over 83 percent to DKK 12.7 billion ($1.9 billion).
"Significant EBIT growth driven by strong gross profit growth and continued cost discipline. GIL contributed positively to both revenue, GP and EBIT growth. Constrained market situations impact gross profit yields positively, but each shipment consumes extra time for our staff. Conversion ratio at record level, confirming the scalability of our infrastructure. This is reflected in the new 2026 target of >50%," DSV management said in its presentation summary.
For 2022, DSV expects EBIT before special items in the range of DKK18 billion – DKK20 billion ($2.8-- $3.08 billion) - a YoY increase of 12.5-25 percent. "The current market conditions with tight capacity and congestion are expected to continue well into 2022."
A new share buyback programme of DKK2.5 billion (nearly $385 million) will start on February 9, 2022, and continue till April 26, 2022. As many as 13.3 million shares were bought back in 2021 at an average price of DKK 1,341 ($206).
