DFDS Lifts Full-Year Outlook

Denmark’s shipping and logistics company DFDS has raised full-year guidance again having reaped fruits from a robust second quarter of the year in its shipping business.

The company’s EBITDA outlook for 2015 was raised to DKK 1.8-1.9bn (USD 268-283 million) from DKK 1.65-1.75bn before special items from DKK 1.65-1.75bn in May and DKK 1.55-1.65bn at the beginning of the year.

“All areas of shipping activities improved results in Q2, with particularly strong performance in the passenger and channel business units. Volume growth for both freight and passengers was strongest on routes calling the UK. Increasing unit revenues in some markets and more efficient operations also contributed to improving results. The logistics activities’ performance was overall in line with expectations,” the company said.

DFDS increased revenue in Q2 by 4% to DKK 3.4bn. EBITDA before special items increased by 37% to DKK 551m. For the last twelve months a return on invested capital (ROIC) before special items of 10.3% was achieved, up from 8.0% for the full-year 2014.

The Board of Directors proposed semi-annual dividends, to pay an interim dividend of extra DKK 9 per share in 2015 and to split each share into five (1:5). As part of the share buyback programme 350,000 shares (before split) are proposed to be cancelled.

“Our shipping activities produced another strong quarter reaping benefits from customer focus, continuous improvement and higher than foreseen volume growth. We are very pleased to have achieved the Group’s financial goal of a return on invested capital of at least 10%. In both our shipping and logistics activities we continue to work on multiple opportunities to further improve performance,” says CEO Niels Smedegaard.