DFDS enjoys increased revenue

2024-02-13T20:51:43+00:00 February 13th, 2024|Finance|

Danish Passenger, freight and logistics group DFDS revealed a fourth quarter 2023 revenue increase of 4.4% to total DKK6.8 bill, plus an increase of 9.1% if adjusted for ferry bunker surcharges.

The adjusted growth was driven by higher ferry revenue from both freight and passengers, as well as revenue from logistics acquisitions.

The 4Q23 EBITDA of DKK1,030 mill was 5.3% below that of 4Q22, while freight ferry EBITDA of DKK669 mill was 8.2% below 2022, due to a spike in oil price spreads in 4Q22.

However, underlying freight ferry earnings were above 2022, as higher rates and cost control offset lower volumes.

As for the passenger side of the business, 4Q23 EBITDA decreased 12.3% to DKK115 mill, due to a reversal of a provision in 4Q22.

Logistics Division’s EBITDA increased 11.5% to DKK310 mill, driven by acquisitions, while the underlying performance was reduced by lower activity levels and one-off costs.

Full-year revenue increased 1.6% to DKK27,304 mill compared to 2022 and EBITDA increased 1.2% to DKK5,034 mill.

The full-year adjusted free cash flow was DKK2,773 mill, including a  gain of DKK1,466 mill from the sale and leaseback of three ferries.

NIBD/EBITDA was 2.9x at year-end.

The outlook for this year is that revenue is expected to grow by 5-8%. The EBIT outlook for 2024 is DKK2.0-2.4 bill (2023 = DKK2.3 bill), and the adjusted free cash flow is expected to be around DKK1.5 bill, DFDS said.

“We’re pleased to deliver a solid result for 2023, despite challenging freight markets. Our ferry and logistics network has been expanded significantly, and in 2024 we will focus on unlocking value, as we start executing our new strategic and financial ambitions,” CEO Torben Carlsen (pictured), said.