DSV Annual Report 2022
= III
Gross profit
DKK 7,911 million
+11.0%
Operating profit
DKK 2,040 million
+9.2%
Geographic segmentation
based on gross profit
EMEA
93%
AMERICAS
7%
The Road division is among the market
leaders in Europe and furthermore has
operations in North America, South
Africa and in the Middle East. The
division operates more than 23,000
trucks and offers full load, part load
and groupage services through a net-
work of more than 250 terminals.
Road
For 2022, the Road division achieved 11.0% growth in gross profit
and a 9.2% increase in EBIT before special items. The increase in
earnings was mainly driven by organic growth. The division deliv-
ered strong operational performance in a market affected by tight
capacity and cost inflation.
Condensed income statement and key figures (DKKm)
2022
2021
Growth*
41,507
33,596
35,416
28,321
16.4%
7,911
7,095
11.0%
1,425
1,122
3,543
3,149
Revenue
Direct costs
Gross profit
Other external expenses
Staff costs
Operating profit before amortisation and
depreciation (EBITDA) before special items
2,943
2,824
Amortisation and depreciation
903
967
Operating profit (EBIT) before special items
2,040
1,857
9.2%
Gross margin (%)
19.1
20.0
Conversion ratio (%)
25.8
26.2
Operating margin (%)
4.9
5.2
Number of full-time employees at year end
16,701
16,888
Total invested capital
Net working capital
ROIC before tax (%)
10,690
9,624
(586) (2,133)
20.1
20.0
Growth including M&A and in constant currencies.
Market situation
We estimate that our main road freight market in Europe grew by
around 1-3 % in 2022 - in line with European GDP. With the
general economic slowdown in the second half of the year, the
road freight market slowed down and market volumes dropped
below 2021 levels in the last quarter of the year.
The road market was characterised by tight capacity and lack of
truck drivers during most of 2022. The EU Mobility Package
came into effect at the beginning of the year, and the new regu-
lation effectively reduced available capacity. On top of this, the
market was impacted by higher fuel costs and general cost infla-
tion, which also contributed to increasing freight rates and costs.
In a challenging market, we estimate that our Road business grew
its share across most markets as a consequence of our strong
network and market position.
Strategic and operational highlights
The war in Ukraine, EU's Mobility Package and other market
challenges were top of mind in 2022. Following the outbreak
of the war, many Ukrainian truck drivers left Western Europe
and returned to their home country. This added to the already
tight situation with structural lack of truck drivers.
Our effective procurement setup and network meant that, in
most cases, we were able to provide necessary capacity for our
customers. We believe that this was an important factor be-
hind our market share gains in 2022.
We also made progress on our Road Way Forward programme.
We implemented improvements across our European groupage
network, including enhanced planning, better equipment utilisa-
tion and most importantly, more departures and higher and
more consistent customer service levels. Our new transport
management system is live in the Baltic countries, but we made
less progress than expected in 2022. We have now changed our
approach and reduced vendor dependency, and we are confident
that we will achieve further progress in 2023.View entire presentation