Danish freight forwarder DSV continued to grow its air freight volumes and revenue in 2018 as it reported its financial results today for last year – but made no mention of its takeover bid for Panalpina.
In 2018, air freight revenue was DKK 18,892 million ($2.8 billion) – up on the DKK 17,579 million in 2017. Volumes were up to 689,045 tonnes, up on the 635,655 tonnes in 2017.
The forwarder said: “After a strong start to 2018, growth in the air freight market dropped to a level of 4% for the year. Compared to the growth level of 8-9% in 2017, when the air freight market experienced the strongest volume growth in nine years, we consider the market growth in 2018 to be on a more normal level, closer to the growth rate in the underlying economy.
“DSV performed well in this market, securing an increase in air freight tonnes of 8%. As was the case for the market, our growth rates were highest in the first half of 2018 and throughout the year we achieved the highest growth in exports from Europe and North America.”
In 2018, DSV’s overall profit across all divisions was DKK 3,988 million, up on DKK 3,012 million in 2017. Total revenue in 2018 was DKK 79,053 million, up on the DKK 74,901 million in 2017.
In the fourth quarter (Q4) of 2018, DSV’s revenue as a whole increased by 10.6 per cent, and amounted to DKK 20,945 million (Q4 2017: DKK 19,019 million). Freight volume growth for Q4 was five per cent for air freight.
DSV chief executive officer, Jens Bjørn Andersen said: “We delivered a strong set of results for 2018. Q4 2018 was in line with our expectations and we can report an EBIT of DKK 5,450 million for 2018, a 15% growth on 2017.
“We are on track to meet our 2020 financial targets and 2018 demonstrates our dedication to delivering quality services to our customers and growing organically. In line with our strategy, we are actively pursuing M&A opportunities and we believe that the right transactions can create value for all stakeholders.”
Last month, DSV made a $4.1 billion (£3.1 billion) takeover approach to Swiss rival Panalpina, which came after a failed bid last year by the forwarder for CEVA Logistics in 2018.