DFDS reported net profit of 21.8 million USD in Q1 2016

DFDSThe Danish shipping and logistics group DFDS reported net profit of 21.8 million USD in Q1 2016 against freight traffic growth of 19% and passenger growth of 25%. The revenues of the group increased by 6% yoy to 470 million USD, while the adjusted EBITDA, excluding one-time payments grew by 77% yoy to 61.57 million USD. The positive finance report of the shipping and logistics company, comes against the returning growth of passengers and freight traffic, as well as acquisition of MyFerryLink from Eurotunnel in the middle of last year. The company’s earnings before interest and tax were 565% yoy higher at 27.8 million USD.

The volume of freight traffic increased by 19% yoy, while the passenger traffic grew by 25%. To a large extent the growth was driven by 36% increase in traffic through the Strait of La Manche. On other routes, growth in freight traffic amounted to 5%, while the passenger traffic grew by 2%. In the Baltic region, DFDS cargo volumes increased by 10.1% yoy, due to a conflict between Poland and Russia in the process of negotiating quotas for motor carriers. The dispute was settled at the end of the quarter.

“All parts of DFDS’ network and key logistics activities contributed to the best first-quarter result so far. It reflects the ongoing transformation of DFDS that our weakest quarter is now in the black”, said the CEO of DFDS, Niels Smedegaard. “We are continuing the journey with the launch of new projects to enhance freight customer services in our route network and reduce haulage costs in our European logistics activities”, added he.

DFDS has raised its full-year forecast due to the better-than-expected result and the continued positive market trends on most routes in its network.

DFDS is the largest shipping and logistics company in Northern Europe. Although DFDS has generally concentrated on freight and passenger traffic on the North Sea and to the Baltic Sea, it has also operated freight services to the USA, South America and the Mediterranean in the past. Today, DFDS operates a network of 25 routes with 50 freight and passenger ships in the North Sea, Baltic Sea and the English Channel under the name DFDS Seaways. The rail and land based haulage and container activities are operated by DFDS Logistics.