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Interim Financial Report Q3 - 2019 Released

We are pleased to report strong results for Q3 despite challenging market conditions, especially in the air freight market.

Interim Financial Report Q3 - 2019 Released

Selected financial and operating data for the period January 1 - September 30, 2019

 (DKKm)  Q3 2019 Q3 2018
excl. IFRS 16
 YTD 2019 YTD 2018
excl. IFRS 16
Revenue   24,521  20,237  64,579  58,108
Gross profit   6,271  4,472  16,670  13,042
EBIT before special items   1,785  1,507  4,870  4,112
Operating margin   7.3%  7.4%  7.5%  7.1%
Conversion ratio   28.5%  33.7%  29.2% 31.5% 
Special items, costs  172  191
Profit after tax   1,149  1,104  3,261  3,060
Adjusted earnings for the period   1,403  1,126  3,592  3,126
Adjusted free cash flow   -  -  2,453  2,631
Diluted adjusted earnings per 
share of DKK 1 for the last 12 months  
 -   -
 24.2  21.6

 Jens Bjørn Andersen, Group CEO: “The closing of the Panalpina transaction on August 19 was the all-important event in Q3. We have had a good start to the integration and the first operational integrations have already started. Meanwhile, we are pleased to report strong results for Q3, despite challenging market conditions, especially in the air freight market.”

Financial Outlook for 2019

Due to the Panalpina transaction, we withdrew the financial outlook for 2019 earlier this year. With the transaction completed and Panalpina included in the consolidated financial statements as of August 19, 2019, the expectations for full-year EBIT before special items for 2019 are at DKK 6,600 million including amortization of customer relationships of approximately DKK 100 million, of which DKK 80 million are related to Panalpina. Transaction and integration costs (reported as special items) for 2019 are expected to amount to approximately 30% of total expected restructuring costs of DKK 2,300 million.

Synergies & Integration Costs

When Panalpina is fully integrated we expect to achieve annual cost synergies of around DKK 2,300 million (previously announced DKK 2,200 million). Around 5% of the cost synergies are expected to impact the income statement in 2019, around 60% in 2020 and the remaining 35% in 2021. Total transaction and integration costs are expected in the level of DKK 2,300 million. These costs will be charged to the income statement under Special Items. We expect that approximately 30% of the transaction and integration costs will materialize in 2019, 55% in 2020 and 15% in 2021.

Share Buyback

On November 11, we will launch a new share buyback program of a maximum value of DKK 2,500 million, running until February 6, 2020. Please refer to Company Announcement No. 800 for further details. 

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