Q2 2024

• Revenue up 9% to DKK 7.6 billion
• EBIT reduced 28% to DKK 519 million
• Adjusted free cash flow increased 21% to DKK 724 million
• CO2 ferry emission intensity lowered 3%

OUTLOOK 2024

• EBIT of DKK 1.7-2.1 billion (previously DKK 2.0-2.4 billion)
• Revenue growth of 8-11% (unchanged)
• Adjusted free cash flow of around DKK 1.5bn (unchanged)

CEO Torben Carlsen:

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 168 million paid in March 2024, our share buyback program has year-to-date returned more than DKK 200 million 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 1.5 billion.

Read the Q2 2024 interim report here:

https://www.dfds.com/en/about/investors/reports-and-presentations/q2-report-2024

July volumes

Ferry – freight: Total volumes in July 2024 were 9.4% above 2023 and up 6.3% adjusted for the addition of Strait of Gibraltar routes in 2024 and closure of the Calais-Tilbury route in 2023.

North Sea volumes were just above 2023 as volumes between the Continent and the UK picked up offsetting lower automotive volumes. Mediterranean volumes were in July above 2023 driven by higher volumes between Türkiye and France.

Channel volumes continued in July to be above 2023 as did volumes on the Baltic Sea routes.

For the last twelve months 2024-23, the total transported freight lane metres increased 4.1% to 40.4 million from 38.8 million in 2023-22. The increase was 2.0% adjusted for the addition of Strait of Gibraltar routes and the Calais-Tilbury route closure.

Ferry – passenger: The number of passengers in July 2024 was 40.0% above 2023 and down 3.1% adjusted for the addition of the Strait of Gibraltar routes. The adjusted decrease was due to lower Channel and Baltic Sea volumes. The number of cars were 24.7% above 2023 and down 4.4% adjusted for Strait of Gibraltar.

For the last twelve months 2024-23, the total number of passengers increased 30.8% to 5.8 million compared to 4.4 million for 2023-22. The increase was 6.6% adjusted for Strait of Gibraltar.