DSV has reported 6.4% growth in Q2, 2018 net revenue to reach DKK19,491.0 million, as gross profits climbed 9.0% to DKK4,450.0 million. EBIT before special items climbed 20.8% to DKK1,449.0 million. The operating margin increased from 6.6% to 7.4%.
For the first half of 2018, net revenues climbed 1.9% to DKK37,871.0 million, as gross profit increased 1.6% to DKK8,570.0 million, boosted by higher activity levels in all divisions. EBIT before special items increased 10.0% to DKK2,605.0 million, mainly driven by the Air and Sea and Solutions divisions, as the operating margin rose from 6.4% to 6.9%.
The Air and Sea division saw Q2 net revenue growth of 2.5% to DKK9,095.0 million driven by continued strong growth in air freight. Gross profits increased 12.6% to DKK2,387.0 million. EBIT before special items climbed 22.9% to DKK988.0 million. The operating margin increased from 9.5% to 10.9%.
In H1, the Air and Sea division achieved 11.0% growth in air freight volumes, mainly driven by EMEA and Americas export, and 4.0% growth in sea freight. Gross margins rose in sea freight but remained unchanged in air freight.
The Road division saw Q2 net revenue growth of 4.6% to DKK7,862.0 million driven by market share gains across the network. Gross profits increased 2.1% to DKK1,318.0 million though these were hit by the transfer of 4PL activities from Road to DSV Group. EBIT before special items climbed 15.4% to DKK322.0 million. The operating margin increased from 3.7% to 4.1%.
In H1, the Road division achieved 4.0% growth in shipments, with DSV estimating market share growth in most markets. Gross profits declined 4.5% as the operating margin dropped from 4.3% to 3.6%.
The Solutions division saw Q2 net revenue growth of 9.3% to DKK3,111.0 million driven by retail and automotive customers. Gross profits increased 9.8% to DKK741.0 million. EBIT before special items climbed 36.7% to DKK175.0 million. The operating margin increased from 4.4% to 5.6%.
In H1, the Solutions division’s net revenue increased 6.6% to DKK5,959.0 million. Growth in EBIT before special items was driven by the EMEA region. The operating margin climbed from 3.5% to 5.1%, as the number of employees in the division increased by 10.7%.
Going into the second half of 2018, DSV continue to see a stable development on the global transport markets and it has upgraded expectations for 2018. Operating profit before special items is expected to be in the range of DKK5,300-5,600 million (previously DKK5,100-5,400 million). DSV remain eager to do further M&A deals, and it has been described by them as their highest priority and is extremely important to the Company moving forwards.