DSV Annual Report 2022 slide image

DSV Annual Report 2022

Michael Ebbe CFO Financial review The Group delivered strong results for 2022, achieving 33% growth in gross profit. EBIT before special items was DKK 25,204 million and in line with the expected level of DKK 24,500-25,500 million. up 48% Income statement (DKKm) Revenue Direct costs Gross profit Gross margin Other external expenses Staff costs Operating profit before amortisation and depreciation (EBITDA) before special items Amortisation and depreciation 2022 2021 Growth* 235,665 182,306 183,516 144,691 52,149 37,615 24.3% 33.3% 22.1% 5,559 16,315 20.6% 4,173 13,025 30,275 20,417 Operating profit (EBIT) before special items 5,071 25,204 16,223 4,194 48.0% Conversion ratio Special items, costs Net financial expenses 48.3% 1,117 866 43.1% 478 841 Profit before tax 23,221 14,904 Tax on profit for the year 5,550 3,650 Profit for the year 17,671 11,254 Growth including M&A and in constant currencies. = III Strong performance in an extraordinary year 2022 was an eventful year with volatile freight markets, heightened geopolitical unrest, historically high inflation rates and a macroeconomic slowdown. The market for air and sea shifted from congestion, lack of capacity and record-high freight rates in the first half of the year to declining volumes and rapidly falling rates in the second half. The markets for road and contract logistics were less volatile - but certainly also impacted by the changes in the world around us. For DSV, it was also an integration year. We completed the integration of Agility's Global Integrated Logistics business (GIL) less than one year after the closing of the transaction - a new record for us. Across all business areas, we achieved growth in earnings in 2022 with the strongest performance in Air & Sea and Solu- tions. In the extraordinary market conditions, we delivered 48% growth in EBIT before special items. And very importantly, we converted the earnings to cash. Adjusted free cash flow was up by 163.4% compared to 2021, and in line with our capital allo- cation policy, we allocated DKK 21,633 million to shareholders through share buyback and dividend. Earnings per share (diluted and adjusted) was up 59.9% in 2022,
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