Danish ferry and logistics company, DFDS has reported an 8% rise in revenue to DKK7.5 bill for the first quarter of this year.
However, EBIT fell by DKK317 mill to minus DKK117 mill but adjusted free cash flow increased by DKK573 mill to DKK246 mill.
CEO Torben Carlsen (pictured) said that this year was a transitional one, where the company lays the groundwork for improving the financial performance, following the events of last year.
He said that the majority of the business units were maintaining or improving their performance as was expected.
The company has three focus areas:
*Adapt the Mediterranean ferry operations to the increased competition.
*Turnround the logistics performance in Turkey and southern Europe by the end of this year.
*Delivering on the logistics projects initiated last year.
The earnings drag from three problem areas continued into the first quarter of this year, however, initial signs of improvement emerged in March, thanks to the actions taken.
Among these were raising prices, adjusting capacity, reducing the number of employees, shutting down unprofitable businesses and merging or closing offices.
Carlsen said he expected a more visible earnings recovery from the second quarter on the back of the actions taken.
Muted European growth is expected this year with potential risks from shifting US policies. Germany’s increase in infrastructure and defence spending is predicted to help European growth with tangible effects seen next year, he said.
He also claimed that cash flow was improving, due to working capital and capex discipline.
Overall, DFDS expected a stronger financial position in the second half of this year, as earnings rise and debt falls.
