DSV, 924 - INTERIM FINANCIAL REPORT Q3 2021
Company Announcement No. 924
Selected key figures and ratios for the period 1 January – 30 September 2021
| (DKKm) | Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 |
| Key figures and ratios | ||||
| Revenue | 49,557 | 28,125 | 121,004 | 84,216 |
| Gross profit | 9,823 | 7,252 | 25,941 | 21,322 |
| Operating profit (EBIT) before special items | 4,472 | 2,725 | 11,110 | 6,904 |
| Special items, costs | 154 | 453 | 154 | 1,479 |
| Profit after tax | 3,161 | 1,337 | 8,017 | 3,058 |
| Adjusted earnings for the period | 3,331 | 1,746 | 8,301 | 4,339 |
| Adjusted free cash flow | 3,718 | 5,674 | ||
| Conversion ratio | 45.5% | 37.6% | 42.8% | 32.4% |
| Diluted adjusted earnings per share of DKK 1 for the last 12 months | 43.9 | 21.7 |
Jens Bjørn Andersen, Group CEO: “In August, we completed the acquisition of Agility’s Global Integrated Logistics business and took over a well-run company and were joined by a team of skilled new colleagues. The integration is off to a good start, and in the coming period our two organisations will be merged into one. The transport markets continue to be characterised by disruption and imbalances causing extraordinary challenges for both our customers and us. Under the extraordinary market conditions, we are happy to report solid results across all divisions.”
Outlook for 2021
On 11 October 2021, we pre-released the Q3 2021 numbers and upgraded the outlook for 2021. The guidance for 2021 is reiterated and the expected special items regarding the integration are added:
- EBIT before special items is expected to be in the range of DKK 15,250-16,000 million
- The effective tax rate is expected to be approximately 23%
- Transaction and integration costs (special items) is expected to be in the level of DKK 500 million in 2021
Synergies and integration costs
Once fully integrated, Agility’s Global Integrated Logistics business is expected to contribute approximately DKK 3,000 million (previously 2,800 million) to the combined EBIT before special items on an annual basis. The integration is expected to be completed by the end of Q3 2022 and the full-year EBIT effect is expected in 2023. The estimated EBIT impact includes the underlying result in Agility GIL and synergies from the consolidation of operations, logistics facilities, back-office functions and IT infrastructure.
Around 30% of the EBIT contribution is expected to impact the income statement in 2021, around 85% in 2022 and 100% in 2023. Total transaction and integration costs are expected in the level of DKK 1,500 million. These costs will be charged to the income statement under special items. We expect that approximately DKK 500 million of the special items (transaction and integration costs) will materialise in 2021 and the rest in 2022.
Share buyback
A separate company announcement about the launch of a new share buyback programme of up to DKK 5,000 million will be issued today. The programme will run until 8 February 2022 or earlier if finalised.
Contacts
Investor Relations: Flemming Ole Nielsen, tel. ,
Media: Maiken Riise Andersen, tel. ,
Yours sincerely,
DSV A/S
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