DFDS Q2 2024 INTERIM REPORT - NAVIGATING CHALLENGING MARKETS
ANNOUNCEMENT NO. 59/2024
Q2 2024
- Revenue up 9% to DKK 7.6bn
- EBIT reduced 28% to DKK 519m
- Adjusted free cash flow increased 21% to DKK 724m
- CO2 ferry emission intensity lowered 3%
OUTLOOK 2024
- EBIT of DKK 1.7-2.1bn (previously DKK 2.0-2.4bn)
- Revenue growth of 8-11% (unchanged)
- Adjusted free cash flow of around DKK 1.5bn (unchanged)
“The top priorities for the rest of the year are to continue to protect our key ferry market positions and turn Logistics’ earnings trend around,” says Torben Carlsen, CEO.
| Q2 | Q2 | Change | LTM | LTM | Change | Full-year | |
| 2024 | 2023 | % | 2023-24 | 2022-23 | % | 2023 | |
| DKK m | (Restated) | (Restated) | (Restated) | ||||
| Revenue | 7,580 | 6,942 | 9 | 28,613 | 27,148 | 5 | 27,304 |
| EBITDA | 1,232 | 1,370 | -10 | 4,737 | 4,930 | -4 | 4,890 |
| EBIT | 519 | 718 | -28 | 1,963 | 2,514 | -22 | 2,326 |
| Adjusted free cash flow | 724 | 601 | 21 | 2,311 | 1,455 | 59 | 2,773 |
| ROIC, % | - | - | - | 6.2 | 8.6 | - | 7.6 |
| Financial leverage, times | - | - | - | 3.1 | 2.9 | - | 2.9 |
CEO’s comments
Q2 turned out to be more challenging than expected and we consequently revised the earnings outlook for 2024 while maintaining the adjusted free cash flow outlook.
The top priorities for the rest of the year are to continue to protect our key ferry market positions and turn Logistics’ earnings trend around.
In parallel with addressing these priorities, we will continue to unlock the value of our expanded network and to move our green transition forward.
Ferry navigating market & cost headwinds
We continued in Q2 to protect our strategic Baltic and Channel ferry market positions in market environments with rate pressure from overcapacity and limited volume growth. Our ability to fully pass on cost increases is therefore currently reduced.
We are confident that the short-term protection of our route network will ensure long-term growth and resilience as markets over time move to rebalance supply and demand.
Logistics challenged by market headwinds and underperforming business unit
A large part of our Logistics’ network is performing well in the face of a challenging market environment with heightened margin pressure and large shifts in customer flows in our Belgian and Dutch operations. Key focus areas in the rest of the year are to further adapt the cost base to the current pricing environment and to grow volumes organically.
In addition to market impacts, Logistics’ Q2 result was lowered by underperformance of the Nordic Cold Chain business unit. We expect to complete the ongoing turnaround of the Nordic unit by year-end.
Overall, we expect Logistics Division’s Q3 result to remain below 2023 while the Q4 2024 result is expected to exceed 2023.
Capital distribution
We continued in Q2 to return excess capital to shareholders. Besides the dividend of DKK 168m paid in March 2024, our share buyback program has year-to-date returned more than DKK 200m to shareholders.
Outlook 2024
The EBIT outlook range was lowered following a Q2 result below expectations and continued market headwinds expected for the rest of year. The adjusted free cash flow outlook is unchanged around DKK 1.5bn.
Read the Q2 2024 interim report here:
https://www.dfds.com/en/about/investors/reports-and-presentations/q2-report-2024
14 August 2024. Conference call today at 10.00am CET
Register ahead of the call via this link.
Access code is mailed after registration. Follow live-streaming of call via this link.
Contact
Torben Carlsen, CEO +45 33 42 32 01
Karen Boesen, CFO +45 20 58 58 40
Søren Brøndholt Nielsen, IR +45 33 42 33 59
Dennis Kjærsgaard Sørensen, Media +45 42 30 38 47
About DFDS
We operate a transport network in and around Europe with annual revenue of DKK 28bn and 14,000 full-time employees.
We move goods in trailers by ferry, road, and rail plus we offer complementary and related logistics solutions.
We also move car and foot passengers on short sea and overnight ferry routes.
DFDS was founded in 1866 and is headquartered and listed in Copenhagen
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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