DFDS’ results in line with outlook

2022-05-14T11:04:25+00:00 May 14th, 2022|Finance|

DFDS reported strong revenue growth of 52%, driven by acquisitions, higher freight and passenger volumes.

EBITDA increased 9% to DKK822 mill.

CEO, Torben Carlsen (pictured), said: “We’re satisfied with DFDS’s Q1 performance, which saw us grow our EBITDA by 9%.

Our freight and passenger businesses are both off to a good start to the year, supported by the acquisition of HSF Logistics and the much-anticipated return of travellers. While European supply chains remain under pressure, our full-year earnings outlook of more than 20% growth remains unchanged,” he said.

In the ferry sector, revenue increased by 30%, due to higher freight and passenger activity, as well as a considerable rise in bunker surcharge revenue.

Logistics Division’s revenue grew by 87% to DKK2,666 mill, impacted positively by the acquisitions of HSF Logistics and ICT Logistics. Total freight EBITDA for ferry and logistics activities before special items increased by 10% to DKK926 mill.

The war in Ukraine reduced freight volumes in the Baltic Sea network, particularly the routes from Germany to Lithuania and from Sweden to Lithuania.

Since the invasion, DFDS has discontinued all activities in Russia and also stopped carrying Russian registered units. DFDS said that it continued to work with international humanitarian organisations to support a steady flow of relief support into Ukraine.

While the war in Ukraine, rising inflation and continued capacity and staff shortages, create uncertainty regarding economic growth expectations for this year, demand for freight services remained robust.

As a result, DFDS’s full-year earnings forecast of more than 20% growth is unchanged.

For 1Q22, DFDS reported total revenue of DKK5,725 mill, compared to DKK3,768 mill for 1Q21. Profit before tax was DKK149 mill, compared to DKK192 mill for the same period in the previous year.