Danish freight forwarder DSV says airfreight “reached new heights” in 2015 as profit and revenue increased.
The figures come hot on the heels of the firm being given approval last month for its takeover of UTi Worldwide.
DSV reports net revenue was 50,869 million DKK ($7.6 billion), up 4.7 per cent and gross profit was 11,201 million DKK, up 8.8 per cent.
The company says the Air and Sea Division took the lead in particular by reporting airfreight growth well “above the market average”. It explains the airfreight results were a key contributor to the division’s organic growth of 13 per cent.
DSV chief executive officer, Jens Bjørn Andersen says: “2015 was a good year for DSV. We gained market share across all business segments and delivered strong growth in earnings and cash flow. The Air & Sea Division was the main contributor to the growth in earnings, but the Road Division also delivered a good comeback. 2015 was the year in which we executed on our strategy to grow through acquisitions.
“In January 2016, we obtained the final approval of the acquisition of UTi Worldwide Inc. We now have a major project ahead of us – the merger of two global logistics providers and lifting the UTi earnings to DSV levels.”
In 2016, DSV says it expects operating profit before special items is expected to be in the range of 3,100-3,500 million DKK and net financial expenses to be 450 million DKK.
The group expects integration costs of approximately 1,500 million DKK in relation to the integration of UTi Worldwide. The costs will be charged to the income statement under special items in 2016 and 2017.
Due to the UTi acquisition, DSV has given no guidance in relation to gross profit and free cash flow for 2016.