February 7, 2020 at 1:31 AM EST

Company Announcement No. 815

“Q4 2019 was in line with our expectations and we can report EBIT of DKK 6,654 million for 2019, an 8.4% organic growth on 2018. 2019 was a strong year for our company – not least thanks to the acquisition of Panalpina in August 2019. A large part of our organisation is now working hard on the integration and things are progressing well. For 2020, we expect EBIT in the DKK 8,200-8,700 million range, and our shareholders can expect significant returns via share buybacks. It is difficult to predict the market situation in 2020; currently the corona virus situation is impacting global supply chains and creating uncertainty. However, at this stage it is not possible to predict the financial impact,” says Jens Bjørn Andersen, CEO.

Selected financial highlights for 2019 (1 January - 31 December 2019)

(DKKm)Q4 2019Q4 2018Full-year 2019Full-year 2018
Gross profit7,0844,44723,75417,489
EBIT before special items1,7841,3386,6545,450
Special items609-800-
Operating margin5.9%6.4%7.0%6.9%
Conversion ratio25.2%30.1%28.0%31.2%
Adjusted earnings  4,4564,093
Adjusted free cash flow  3,6783,916
Diluted adjusted earnings per share of DKK 1  22.122.1
Proposed dividend per share (DKK)  2.502.25
EBIT before special items     
  Air & Sea1,1958974,5063,693
  Road272  2391,2511,147
  Solutions340223   1,013709

Q4 2019 results
For Q4 2019, revenue amounted to DKK 30,122 million (Q4 2018: DKK 20,945 million). Panalpina's estimated contribution for the quarter was DKK 9,353 million. The organic growth rate was negative by 1.1%.

For Q4 2019, gross profit came to DKK 7,084 million (Q4 2018: DKK 4,447 million). Panalpina's estimated contribution for the quarter was DKK 1,841 million. The organic growth in gross profit came to 4.4% for the Group and was mainly driven by the Air & Sea and Solutions divisions.   

EBIT before special items was up by 9.9% (in constant currencies, adjusted for IFRS 16 and the inclusion of Panalpina) to DKK 1,784 million for Q4 2019 (Q4 2018: DKK 1,338 million). The growth was mainly driven by the Air & Sea
and Solutions divisions. Panalpina's estimated contribution for the quarter was DKK 175 million and was positively impacted by cost synergies.

The Board of Directors proposes ordinary dividends of DKK 2.50 per share for 2019 (2018: DKK 2.25 per share). 

Outlook for 2020

  • EBIT before special items is expected to be in the range of DKK 8,200-8,700 million.
  • Special items are expected in the level of DKK 1,500 million.
  • The effective tax rate of the Group is expected to be approximately 23%.

Share buy-back
A separate company announcement about the launch of a new share buyback programme of up to DKK 6,000 million will be issued today. The programme will run until 30 July 2020.

Investor teleconference
DSV will host an investor teleconference on 7 February 2020 at 11.00 a.m. CET. Please refer to for details.


Investor Relations
Flemming Ole Nielsen, tel. +45 43 20 33 92,
Frederikke Anna Linde, tel. +45 43 20 31 95,

Christian Krogslund, tel. +45 43 20 41 28,

Yours sincerely,

DSV Panalpina A/S