DSV Annual Report 2022
= III
Gross profit
DKK 9,318 million
+35.3%
Operating profit
DKK 2,701 million
+47.4%
Geographic segmentation
based on gross profit
EMEA
71%
AMERICAS
17%
APAC
12%
The Solutions division offers ware-
housing and logistics services globally
and controls more than 500 logistics
facilities. The service portfolio includes
freight management, customs clear
ance, order management and e-com-
merce solutions.
Solutions
The Solutions division achieved a 35.3% increase in gross profit
and a 47.4% increase in EBIT before special items. The strong
performance was driven by organic growth and the addition of
GIL activities.
Condensed income statement
and key figures (DKKm)
Revenue
Direct costs
Gross profit
Growth*
2022
2021
24,409
15,091
18,734
12,081
26.2%
9,318
6,653
35.3%
Other external expenses
1,759
1,338
Staff costs
2,254
1,664
Operating profit before amortisation and
depreciation (EBITDA) before special items
5,305
3,651
Amortisation and depreciation
2,604
1,876
Operating profit (EBIT) before special items
2,701
1,775
47.4%
Gross margin (%)
38.2
35.5
Conversion ratio (%)
29.0
26.7
Operating margin (%)
11.1
9.5
Number of full-time employees at year end
32,077
31,866
Total invested capital
23,364
20,182
Net working capital
1,624
1,061
ROIC before tax (%)
12.4
11.3
Growth including M&A and in constant currencies.
Market situation
The contract logistics market grew by an estimated 3-4% in
2022 compared to the previous year. The market had strong
momentum for the first part of the year, but growth deceler-
ated towards the end of the year. For many companies, espe-
cially in the retail sector, inventory levels increased during the
year, but in- and outbound transactions in warehouses de-
clined compared to the high activity level in 2021.
Throughout the year, warehouse capacity stayed in high demand
across most markets. As a result, warehouse utilisation has been
high, and the market was impacted by lack of labour, increasing
energy prices, general cost inflation and higher interest rates.
We estimate that Solutions took market share in all its major
markets during the year. This was driven by a strong service
offering, addition of new warehouse capacity and high utilisa-
tion of existing capacity.
Strategic and operational highlights
In 2022, we completed the GIL integration. The contract
logistics operations in the Middle East and South-East Asia
added activities across several industries, including pharma/
healthcare, and were a strong contributor to the growth.
We continued executing our long-term strategy for developing
multi-client warehouse campuses based on strategic roadmaps
for each region, and in 2022 we added more than 800,000 m²
of warehouse facilities of which approximately 300,000 m²
was a net addition to the existing capacity. The campuses are
partly replacing existing facilities but are also adding new capac-
ity and are a key organic growth driver for the division.
The new warehouses can be equipped and automated to
match the needs of customers in different industries and can
accommodate changes in customer needs around seasonality
and growth. Having several customers in the same locationView entire presentation