DSV, 924 - INTERIM FINANCIAL REPORT Q3 2021

Company Announcement No. 924Selected key figures and ratios for the period 1 January – 30 September 2021(DKKm)Q3 2021Q3 2020YTD 2021YTD 2020      Key figures and ratios     Revenue49,55728,125121,00484,216Gross profit9,8237,25225,94121,322Operating profit (EBIT) before special items4,4722,72511,1106,904Special items, costs1544531541,479Profit after tax3,1611,3378,0173,058   ...

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. +45 43 20 33 92, [email protected]
Media: Maiken Riise Andersen, tel. +45 43 20 30 74, [email protected]  

Yours sincerely,
DSV A/S

Attachment

• 924 - Announcement (26.10.2021) - INTERIM FINANCIAL REPORT Q3 2021