The Agility GIL takeover coupled with market growth fetched DSV the airfreight volumes and revenue growth of double digit percentage levels during the 3rd Quarter of the year.
In its 3rd quarter DSV’s airfreight revenues rose by 78.7% year on year to DKr18.4bn and volumes were up by 28.8% to 386,702 tons.
DSV said that much of the volume increase was down to the inclusion of Agility GIL’s results for the first time.
With the Agility figures stripped out, the company’s airfreight volumes would have increased in line with the overall market, estimated to have grown by around 15-20%.
The increase prices from the carriers have resulted into faster growth of revenues than volumes, the company said.
Another reason behind the increased profitability was the extra work that the company did to manage supply chains in light of capacity constraints and general supply chain disruption.
The company saw its airfreight gross profits for the third quarter increase by 29.1% to DKr2.6bn.
“In airfreight, high demand, airport restrictions (COVID-19restrictions) and limited belly space capacity in passenger planes continue to impact the available capacity and are keeping rates high. The return of passenger traffic is gradually having a positive impact on capacity due to more belly capacity entering the market, although this is primarily relevant for regional and domestic passenger flights, and we only expect a gradual return of long-haul passenger flights, the company said.
Further adding it said, “Global supply chains continue to be impacted by inefficiencies caused by the pandemic, impacting both demand and available capacity. For both air and sea, the markets have recovered and, overall, volumes are back at or above 2019 levels.”
“In August, we completed the acquisition of Agility’s Global Integrated Logistics business and took over a well-run company and were joined by a team of skilled new colleagues. The integration is off to a good start,and in the coming period our two organisations will be merged into one.Jens Bjørn Andersen, Group CEO, DSV
“The transport markets continue to be characterised by disruption and imbalances causing extraordinary challenges for both our customers and us. Under the extraordinary market conditions, we are happy to report solid results across all divisions.”
Once fully integrated, Agility’s GIL business is expected to contribute approximately DKr3bn to the combined EBIT before special items on an annual basis. The integration is expected to be completed by the end of Q3 2022 and the full-year EBIT effect is expected in 2023.