DANISH forwarding giant DSV's 2021 profit increased 164.3 per cent year on year to KR11.2 billion (US$1.7 billion), drawn on revenues of KR182.3 billion, up 57.2 per cent.
Results were boosted by the KR30 billion acquisition of Agility's Global Integrated Logistics (GIL) business, a recovery in trade volumes and higher freight rates as a result of supply chain disruption.
GIL's results were included from the third quarter of the year, reports London's Air Cargo News.
'In the past year, we saw several unprecedented factors conspiring across global supply chains,' said dsv chief executive Jen Bjorn Andersen.
'Beyond the continuous pandemic lockdowns and restrictions, a surging demand for goods strained transport capacity, equipment, infrastructure and labour across the supply chain. Bottlenecks persist and have led to record-high freight rates in 2021.
'These disruptions continue to impact the global economy, raising difficult questions for the logistics industry and exposing global supply chain vulnerabilities,' he said.
DSV estimates that bringing GIL into the company will increase annual revenue by more than 20 per cent. Once fully integrated in 2023, GIL is expected to contribute around DKr3bn to combined ebit before special items annually.
Looking ahead, DSV expects ebit to reach KR18 billion to KR20 billion based on an economic growth rate of four per cent and the ongoing integration of GIL.
'The outlook is based on the assumption that the current situation in transport markets - with congestion, tight capacity and high rate levels - will continue in the first half of 2022,' the forwarder said.
SeaNews Turkey
Results were boosted by the KR30 billion acquisition of Agility's Global Integrated Logistics (GIL) business, a recovery in trade volumes and higher freight rates as a result of supply chain disruption.
GIL's results were included from the third quarter of the year, reports London's Air Cargo News.
'In the past year, we saw several unprecedented factors conspiring across global supply chains,' said dsv chief executive Jen Bjorn Andersen.
'Beyond the continuous pandemic lockdowns and restrictions, a surging demand for goods strained transport capacity, equipment, infrastructure and labour across the supply chain. Bottlenecks persist and have led to record-high freight rates in 2021.
'These disruptions continue to impact the global economy, raising difficult questions for the logistics industry and exposing global supply chain vulnerabilities,' he said.
DSV estimates that bringing GIL into the company will increase annual revenue by more than 20 per cent. Once fully integrated in 2023, GIL is expected to contribute around DKr3bn to combined ebit before special items annually.
Looking ahead, DSV expects ebit to reach KR18 billion to KR20 billion based on an economic growth rate of four per cent and the ongoing integration of GIL.
'The outlook is based on the assumption that the current situation in transport markets - with congestion, tight capacity and high rate levels - will continue in the first half of 2022,' the forwarder said.
SeaNews Turkey
