DSV Reports Further Growth In Run-Up To Panalpina Merger

Danish freight forwarder DSV has reported further revenue and profit growth in the first quarter of this year as the company prepares for its merger with Swiss operator Panalpina later this year.

Regulatory approval for the merger has yet to be achieved, but DSV believes that the merger with Panalpina will create the second-largest airfreight forwarder in the world, measured by volume. The combined volumes of the two companies will handle 1.5 million tonnes of airfreight annually with a total of $17 billion revenue.

Jens Bjørn Andersen, DSV Group CEO said, "We have made a thorough analysis of Panalpina's freighter operation and are excited to see how that will work in combination with us."

The financial performance for the first quarter of 2019 was said to have lived up to DSV's expectations. However, to allow the listing of new shares for the Exchange Offer to the shareholders of Panalpina, DSV has withdrawn its outlook for 2019 effective as of 30 April.

"We expect to publish a new financial outlook once the combination with Panalpina is completed," said a company statement.

First quarter revenues build on five years of consecutive revenue growth with the latest figures showing revenues of DKK19,979 million ($3.00 million) compared to DKK18,380 million ($2.76 million) in the same period last year.

Gross profits were up as a result by nearly 25 percent, reaching DKK5,114 ($768,000) compared to DKK4,120 million ($619,000) in 2018.

Andersen said, "We delivered strong results in the first quarter of 2019, with healthy top-line growth across all divisions and a 15 percent underlying growth in EBIT. As previously announced, we have entered into an agreement to join forces with Panalpina and we expect that this transaction will close by the end of the third quarter this year."

A separate company announcement about the launch of a new six-month share buyback programme of up to DKK 3,500 million ($525.7 million) is expected to be announced on 30 April.