Company Announcement No. 943
In the announcement no. 941 the European Single Electronic Format (ESEF) file was not attached, we therefore re-distribute the 2021 annual report. There are no other changes to the previous announcement.
“2021 has been a good – but also challenging – year for DSV. With the acquisition of Agility’s Global Integrated Logistics business (GIL) we have once again executed on our growth strategy. We are proud that GIL is now part of DSV, and the integration is progressing well. Supply chain disruptions, port congestion and record-high freight rates have been major themes during 2021, and our teams have worked hard to find solutions and move the cargo for our customers. Under these difficult market conditions, we are pleased to deliver a strong set of financial results for 2021,” says Jens Bjørn Andersen, Group CEO.
Selected financial highlights for 2021 (1 January - 31 December 2021)
| (DKKm) | Q4 2021 | Q4 2020 | 2021 | 2020 |
| Revenue | 61,302 | 31,716 | 182,306 | 115,932 |
| Gross profit | 11,674 | 7,212 | 37,615 | 28,534 |
| EBIT before special items | 5,113 | 2,616 | 16,223 | 9,520 |
| Special items | 324 | 685 | 478 | 2,164 |
| Operating margin | 8.3% | 8.2% | 8.9% | 8.2% |
| Conversion ratio | 43.8% | 36.3% | 43.1% | 33.4% |
| Adjusted earnings | 11,847 | 6,146 | ||
| Adjusted free cash flow | 8,659 | 8,746 | ||
| Diluted adjusted earnings per share of DKK 1 | 50.9 | 26.5 | ||
| Proposed dividend per share (DKK) | 5.50 | 4.00 | ||
| EBIT before special items | ||||
| Air & Sea | 4,011 | 1,790 | 12,768 | 7,026 |
| Road | 513 | 420 | 1,857 | 1,390 |
| Solutions | 748 | 456 | 1,775 | 1,161 |
Q4 2021 results
For Q4 2021, revenue amounted to DKK 61,302 million (Q4 2020: DKK 31,716 million). The growth of 89.8% (in constant currencies) was driven by increased activity, higher freight rates and the impact from the GIL acquisition. Q4 2021 was the first full quarter with GIL after the closing of the transaction in August 2021.
For Q4 2021, gross profit came to DKK 11,674 million (Q4 2020: DKK 7,212 million). The growth in gross profit was 58.4% (in constant currencies) for the Group and was driven by higher activity across all divisions. In Air & Sea, the extraordinary freight markets with tight capacity and high rates had a positive impact on the gross profit.
EBIT before special items was DKK 5,113 million for Q4 2021 (Q4 2020: DKK 2,616 million), a growth of 90.2% (in constant currencies). All three divisions contributed to the growth, driven by organic growth in gross profit, improved conversion ratio and a positive contribution from GIL. EBIT before special items for the full-year 2021 was DKK 16,223 million. This was slightly above the guidance range of DKK 15,250-16,000 million.
Outlook for 2022
- EBIT before special items is expected to be in the range of DKK 18,000-20,000 million.
- The effective tax rate of the Group is expected to be approximately 23%.
The 2022 outlook assumes a global economic growth around 4% and similar growth levels in the transport markets. We expect that the current situation with congestion, tight capacity and high rate levels will continue well into 2022. A gradual reduction of the congestion could start in the second half of the year.
Due to the volatile and unpredictable transport markets, the assumptions that our outlook for 2022 rely on are more uncertain than they would normally be.
Furthermore, we assume that the integration of GIL will continue as planned, and we expect special items in the level of DKK 1,000 million related to the integration in 2022.
Dividend
The Board of Directors proposes ordinary dividends of DKK 5.50 per share for 2021 (2020: DKK 4.00 per share).
New share buyback programme
A separate company announcement about a new share buyback programme of DKK 2,500 million will be issued today. The programme starts 9 February 2022 and will run until 26 April 2022.
New 2026 financial targets
Due to the GIL acquisition, which adds further scale to the Air & Sea division, the financial targets are revised as follows:
| 2026 targets (%) | 2021 actual | Previous 2025 targets | New 2026 targets |
| DSV Group | |||
| Conversion ratio | 43.1 | >40.0 | >45.0 |
| ROIC (before tax) | 19.6 | >20.0 | >20.0 |
| Divisional targets for conversion ratio | |||
| Air & Sea | 53.7 | >47.5 | >50.0 |
| Road | 26.2 | >30.0 | >30.0 |
| Solutions | 26.7 | >30.0 | >30.0 |
Investor teleconference
DSV will host an investor teleconference on 9 February 2022, at 12.30 CET. Please refer to investor.dsv.com for details.
Contacts
Investor Relations:
Flemming Ole Nielsen, tel. +45 43 20 33 92, flemming.o.nielsen@dsv.com
Sebastian Rosborg, tel. +45 43 20 33 87, sebastian.rosborg@dsv.com
Media:
Maiken Riise Andersen, tel. +45 43 20 30 74, maiken.r.andersen@dsv.com
Yours sincerely,
DSV A/S
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