DSV opens new Canada HQ, reports 2019 results

DSV Canada HQ

DSV Canada opens its new head office location in Milton, a suburb of Canada’s largest city Toronto and just 30 kilometres from Pearson International Airport (YYZ).

DSV says the state-of-the-art logistics facility is ideally positioned to serve the Canadian business-to-business (B2B) and business-to-consumer (B2C) e-commerce markets.

The new 100,000 sqm facility is the largest multi-customer logistics facility in Canada.

DSV recently released its annual financial results for 2019, reporting a significant jump in airfreight tonnage to 442,069 tonnes of cargo, an increase of 152 per cent year-on-year, in the fourth quarter.

The company said the growth seen in 4Q 2019 was in line with its expectations, and attributed the increase in business largely to its acquisition of Panalpina in August 2019. Excluding the Panalpina acquisition, organic airfreight growth declined 6.0 per cent in 4Q and down 2.0 per cent YoY for the full year.

Revenue reported by the company’s Air & Sea forwarding division reached DKK 18.077 billion (USD 2.64 billion), including Panalpina revenues, and was up 6.6 per cent. Gross profit reached DKK 4.121 billion. Earnings before interest and tax (EBIT) for the division totalled DKK 1.19 billion, including organic growth of 9.9 per cent.

For the full year, revenue reported by the Air & Sea division totalled DKK 51.15 billion. Panalpina’s estimated contribution since the inclusion in August 2019 was DKK 12.63 billion. Organic growth for the division in 2019 came to 2.5 per cent.

Gross profit was up 5.9 per cent to DKK 12.51 billion. Panalpina’s estimated contribution was DKK 2.49 billion for the period since August. EBIT for the division in 2019 totalled DKK 4.5 billion, including organic growth of 12.1 per cent.

For 2019, DSV’s overall revenue rose to DKK 94.7 billion, up 2.0 per cent YoY, adjusting for exchange rate fluctuations and Panalpina contributions. Of that, Panalpina’s estimated contribution was DKK 13.37 billion since the inclusion in August 2019, largely on the backs of the Air & Sea division.

Gross profit, meanwhile, rose to DKK 23.75 billion, with an organic growth of 5.7 per cent and in constant currencies and excluding Panalpina. EBIT before special items was DKK 6.65 billion for 2019, with an organic growth of 8.4 per cent in constant currencies and excluding Panalpina.

“A large part of our organization is now working hard on the integration and things are progressing well,” says DSV CEO Jens Bjorn Andersen.

“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 coronavirus situation is impacting global supply chains and creating uncertainty. However, at this stage it is not possible to predict the financial impact.”

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DSV opens new Canada HQ, reports 2019 results
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DSV opens new Canada HQ, reports 2019 results
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DSV Canada opens its new head office location in Milton, a suburb of Canada’s largest city Toronto and just 30 kilometres from Pearson International Airport (YYZ).
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AsiaCargoBuzz.com
AsiaCargoBuzz.com
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