DSV Annual Report 2022
The performance of each of our divisions is further described in the
reviews on pages 24-30.
20
DSV Annual Report 2022 Financial and non-financial performance
Gross profit (DKKm)
Gross profit
Conversion ratio →
(DKKm)
%
driven primarily by growth in earnings and to a less degree a reduction
in the number of issued shares.
60,000
50
50,000
40
40,000
30
30,000
20
20,000
10
10,000
0
0
2018
2019
2020
2021
2022
EBIT
EBIT before special items (DKKm)
Operating margin
(DKKm)
%
28,000
20
24,000
16
20,000
16,000
12
12,000
8
8,000
4,000
0
2018
2019
2020
2021
2022
Diluted adjusted earnings per share of DKK 1
(DKK)
100
80
60
40
20
0
2018
2019
2020
2021
2022
4
Integration of Agility's Global Integrated Logistics business
The acquisition of GIL was closed in August 2021, at which date we
included GIL in our consolidated financial statements. Consequently,
the business combination was only partly included in the comparable
P&L figures for 2021.
We finalised the integration during Q3 2022, and in line with previous
announcements, we estimate that GIL will contribute at least DKK 3 billion
annually to combined EBIT before special items. The integration triggered
costs of DKK 1.1 billion in 2022, which are recognised in the income
statement under special items.
Ukraine and Russia
As previously announced, we have divested or closed down all DSV sub-
sidiaries in Russia and Belarus. We made this decision shortly after Russia's
invasion of Ukraine, and the exit had no material impact on the financial
results of the Group. We also make sure that we comply with international
sanctions against Russia and Belarus at all times, and we have stopped
organising transports to, from and through the two countries, except for
pharmaceutical shipments and humanitarian aid.
Our Ukrainian operations were temporarily suspended when the invasion
started in February 2022. During the year, we have resumed activities in
the country to the extent possible.
Results
Revenue
Revenue was up 24.3% in 2022. The Air & Sea division grew revenue by
26.1%, driven by the inclusion of GIL and higher freight rates in the first
half of the year. In the second half of 2022, the economic slowdown
resulted in lower demand for freight services.
= III
In combination with less congestion this led to falling freight rates and
lower revenue for the division.
(DKKm)
2022
2021
Growth*
Air & Sea
174,431 131,901
Road
41,507
35,416
Solutions
24,409
18,734
26.1%
16.4%
26.2%
Non-allocated items and
eliminations
(4,682) (3,745)
Total revenue
235,665 182,306
24.3%
n.a.
Growth including M&A and in constant currencies.
The Road and Solutions divisions also achieved strong revenue growth for
the year. This was driven by higher average rates/fuel prices and higher ac-
tivity (market share gains). GIL business contributed to the growth in both
divisions, especially in Solutions, due to its strong footprint in the Middle
East and APAC. The economic slowdown also affected Road and Solutions
in the second half of 2022; however, less than the Air & Sea division.
Gross profit
Gross profit was up 33.3% in 2022. Growth in Air & Sea was mainly driven
by the addition of GIL and higher gross profit yields due to the extra-
ordinary market conditions with port congestion, high freight rates and
general cost inflation. In the second half of the year, the division was
affected by a gradual drop in yields as congestion started to ease.
(DKKm)
2022
2021
Growth⭑*
Air & Sea
Road
34,624
23,769
38.5%
7,911
7,095
11.0%
Solutions
9,318
6,653
35.3%
Non-allocated items and
eliminations
296
98
n.a.
Total gross profit
52,149
37,615
33.3%
Growth including M&A and in constant currencies.View entire presentation