Danish forwarder DSV posted revenue and profit growth over the second quarter and first half of 2019, the company said in its interim financial report today. The forwarder also managed to grow its airfreight volumes during the first half, despite challenging global market conditions.
DSV’s revenue increased by 3.0% during the second quarter and 5.8% for the first half, to DKK20.1 billion (US$3.0 billion) and US$6.0 billion, respectively. Gross profit, meanwhile, increased 18.8% and 21.3%, to US$787.5 million and US$1.5 billion, respectively.
DSV Air and Sea reported air freight volume growth of 1% during the first half of 2019, despite a 2% decline in volumes during the second quarter, thanks to strong Q1 performance. According to the company, “the slowdown follows the market trend, but is also impacted by the termination of a high-volume, low-margin customer contract.” DSV attributed the weakening airfreight market to political uncertainty related to the U.S.-China trade war.
Despite slowing volume growth in DSV’s airfreight segment, the company said underlying gross profit per shipment improved significantly for airfreight during the first half of 2019, as did operating margins for the division. Operating margins were improved by “successful leveraging of our global network, efficient IT infrastructure and back-office functions,” the financial report said.
Jens Bjørn Andersen, CEO of DSV Group, also added that DSV’s acquisition of Panalpina is still on track to close during the third quarter of 2019.