Danish logistics company DSV has achieved gross profit of 7,821 million Danish Kroner ($1.1 billion) for the first six months of 2016, up on the 5,569 million Danish Kroner in the same period last year.
DSV took over the US-based UTi Worldwide for $1.35 billion earlier this year and puts the figures mainly down to the acquisition of UTi.
Operating profit before special items came to 1,543 million Danish Kroner, up on the 1,450 million Danish Kroner for the same six months in 2015. Net revenue was 32,925 million Danish Kroner, up on the 25,728 million Danish Kroner for the period last year.
Airfreight, which comes under the Air & Sea Division reported net revenue of 7,330 million Danish Kroner for the first six months of 2016 against 4,500 million for the same period last year.
This is mainly attributed to UTi having contributed activities to the division worldwide, with the US as the largest single country, but also with major activities in Europe, APAC and Africa.
Gross profit for the first six months of 2016 in airfreight was 2,005 million Danish Kroner, up on the 1,074 million Danish Kroner last year, despite the acquired UTi activities initially running at a loss.
For airfreight, the division reported a volume increase in tonnes of 84 per cent for the first half of 2016, handling 274,379 tonnes, compared to 148,895 tonnes in the same period last year
DSV says growth is mainly attributable to UTi, while management estimates the original DSV operations achieved organic growth above the market rate.
DSV chief executive officer, Jens Bjørn Andersen says: “With earnings growth of more than 10 per cent, we are very satisfied with our performance in the second quarter. DSV continues the positive development, and UTi’s operating deficit has been neutralised only five months after the acquisition.
“The integration of UTi is progressing faster than we had originally anticipated, and the merger of offices and IT systems is already more than halfway complete. UTi’s and DSV’s employees and operations are being united step by step across the world, and it is great to see that our new colleagues are highly motivated to become part of the DSV culture — that is crucial for a successful integration.”