DSV Annual Report 2022
21
DSV Annual Report 2022
Financial and non-financial performance
= III
Gross profit growth in Road and Solutions was driven by the addition of
GIL business and higher activity levels. Solutions in particular achieved
high growth as we added new warehouse capacity.
Gross margin for the Group was 22.1%, compared to 20.6% last year.
This increase was driven by the Air & Sea division with high gross profit
yields and a change in its product mix. The Solutions division also achieved
a higher gross margin, due to increased warehouse utilisation and more
efficient workflows.
All regions achieved growth in gross profit in 2022, strongest in APAC and
Americas. Furthermore, the Middle East was significantly strengthened by
the addition of GIL's network in this region.
EBIT before special items
For the Group, EBIT before special items increased by 48.0%. This was
driven by gross profit growth across all divisions and geographical regions
and by the addition of GIL.
Growth*
Total staff costs (excluding hourly workers) were DKK 16,315 million in
2022 (2021: DKK 13,025 million). The cost rise was from the inclusion
of GIL as well as organic increases in activity, cost inflation and the impact
of exchange rate fluctuations.
Other external expenses totalled DKK 5,559 million in 2022 (2021: DKK
4,173 million). They were affected by the same factors as staff costs.
Depreciations totalled DKK 5,071 million in 2022 (2021: DKK 4,194
million). This rise was due to the inclusion of GIL and the addition of
several warehouses in our Solutions division.
Special items totalled DKK 1,117 million in 2022 (2021: DKK 478 mil-
lion), relating to the now finalised GIL integration. The total GIL integration
cost came to DKK 1.6 billion.
Net financial expenses totalled DKK 866 million in 2022 (2021: DKK 841
million). The increase was partly due to the inclusion of GIL and an increase in
our leasing debt compared to 2021 due to our warehouse expansions in 2022.
Gain on currency translation was DKK 276 million in 2022, compared to a
DKK 53 million loss in 2021. Currency translations were mainly related to
intercompany loans and had no cash impact. The integration of GIL led to
a temporary increase in intra-group currency exposure.
(DKKm)
2022
2021
Air & Sea
20,658
Road
2,040
12,768
1,857
Solutions
2,701
1,775
53.0%
9.2%
47.4%
Non-allocated items and
eliminations
(195)
(177)
n.a.
(DKKm)
Total EBIT before special items
25,204
16,223
48.0%
*
Growth including M&A and in constant currencies.
Interest on lease liabilities
Other interest cost, net
Interest on pensions
Currency translation, net
Diluted adjusted earnings per share
Diluted adjusted earnings per share went up by 59.9% to DKK 81.4 in
2022 (2021: DKK 50.9). This was driven by the significant increase in
adjusted earnings and also a reduction in shares outstanding, as treasury
shares from share buybacks were cancelled during the year.
Cash flow statement
Cash flow from operating activities in 2022 rose by 120.0% to DKK
26,846 million. Cash flow from operating activities was positively affected
by higher EBITDA before special items and an improvement in net working
capital, but offset by higher tax payments for the period.
On 31 December 2022, our net working capital (NWC) was DKK 5,116
million, compared to DKK 8,031 million in 2021. The main reason was lower
NWC for the Air & Sea division, where lower freight rates and lower activity
in the last months of 2022 reduced funds tied up in NWC. Process optimi-
sations, especially in the GIL business, also contributed to lower NWC.
(DKKm)
Cash flow from operating activities
Cash flow from investing activities
2022
2021
26,846
(966)
12,202
420
Free cash flow
25,880 12,622
2022
2021
Cash flow from financing activities
(24,245) (8,680)
727
495
Cash flow for the period
1,635
3,942
396
276
19
17
Free cash flow
25,880
12,622
(276)
53
Net acquisition of subsidiaries and activities
Special items
(1,631)
866
841
Repayment of lease liabilities
664
(3,734)
Adjusted free cash flow
22,810
828
(3,160)
8,659
The 2022 conversion ratio was 48.3%, compared to 43.1% last year. Our
Air & Sea and Solutions divisions improved their ratios and Road was on
par with 2021, even though inflation put high pressure on the cost base
in the second half of the year. In extraordinary market circumstances -
and while managing the GIL integration - our teams continued to opti-
mise workflows and systems and leverage our network. As logistics mar-
kets gradually normalise, we expect a lower conversion ratio in 2023.
Net financial expenses
The effective tax rate was 23.9% in 2022, compared to 24.5% in 2021.
This was in line with our expectations. The inclusion of GIL and the growth
of the Air & Sea division have increased the Group's presence in countries
with a relatively higher corporate tax rate.View entire presentation