Q1 2024 Interim report
Marmorvej 18 · DK-2100 Copenhagen Ø · +45 3342 3342 · dfds.com · CVR 14 19 47 11
On track to deliver
on outlook
Q1 2024 interim report
Q1 overview
2/30
Q1 2024
→ Revenue up 11% to DKK 7.0bn
→ EBIT reduced 45% to DKK 200m
→ Adjusted free cash flow of
DKK -327m
→ CO2 ferry emission intensity
lowered 3%
Outlook 2024, unchanged
→ EBIT of DKK 2.0-2.4bn
→ Revenue growth of 8-11%
→ Adjusted free cash flow of around
DKK 1.5bn
CEO’s comments
2024 is the first year of our new strategy
Moving Together Towards 2030 focused on
unlocking the value of our expanded
network through organic growth and tran-
sitioning to become a greener company.
The expansion of our network to high-
growth markets was fulfilled in April with
the agreement to acquire the international
transport network of Ekol Logistics. The
transaction is expected to close in Q4
2024. The newly acquired ferry routes on
the Strait of Gibraltar were off to a good
start.
The network is in place to support our focus
on organic growth. A high priority is also to
improve earnings for activities that
currently face market headwinds such as
the Baltic Sea and Channel ferry networks
as well parts of our Cold Chain logistics
activities.
We are moving to green and ordered
another 100 e-trucks earlier this year
underlining our ambition to decarbonise
land transport. The short-term
decarbonisation of our ferry activities is on
target, and in parallel we are laying the
groundwork to achieve our ambition of
having six green ferries on the water by the
end of 2030.
Q1 result ahead of expectations
As foreseen the current market
environment remains mixed. We saw a
higher than expected pick-up in ferry
volumes across most of the network in Q1
while our land transport network mostly
faced flat or lower volumes. Persistent
overcapacity enhanced pricing pressure in
certain market areas.
“While we are on track to
deliver on our outlook, we
continue to focus on
improving profit through
operational efficiencies
across our network.”
Torben Carlsen, CEO
The result for Q1 2024 was nevertheless
ahead of our expectations for the quarter
driven by the Ferry Division.
Capital distribution and leverage
We are committed to returning excess
capital to shareholders and besides the
dividend paid in March 2024, our share
buyback program has year-to-date
purchased shares for more than DKK 100m.
Our financial leverage is expected to
decrease in the coming quarters ahead of
the expected closing of the acquisition of
Ekol Logistics transport network in Q4.
Outlook on track
While we are on track to deliver on our
outlook, we continue to focus on improving
profit through operational efficiencies
across our network in parallel with the
execution of our strategy.
Q1 overview
DKK m
Q1
2024
Q1
2023
(Restated)
Change,
%
LTM
2023-24
LTM
2022-23
Change,
%
Full-year
2023
(Restated)
Revenue
7,011
6,341
11
27,975
27,808
1
27,304
EBITDA
957
972
-2
4,875
5,105
-5
4,890
EBIT
200
363
-45
2,163
2,475
-13
2,326
Adjusted free cash
flow
- 327
258
-
2,188
1,586
-
2,773
ROIC, %
-
-
-
6.9
9.2
-
7.6
Financial leverage,
times
-
-
-
3.2
3.0
-
2.9
8 May 2024
Conference call today at 10.00am CET
Register ahead of the call via this link.
Access code is mailed after registration.
Follow live-streaming of call via this link.
Q1 2024 interim report
Key figures
3/30
Key figures
Q1
Q1
LTM
Full-year
DKK m
2024
2023
(Restated)*
2023-24
2023
(Restated)*
Income statement
Revenue
7,011
6,341
27,975
27,304
Ferry Division
4,214
3,820
16,887
16,493
Logistics Division
3,130
2,849
12,377
12,096
Non-allocated items and eliminations
- 333
- 328
- 1,289
- 1,285
Operating profit before depreciation and amortisation (EBITDA)
957
972
4,875
4,890
Ferry Division
688
704
3,793
3,808
Logistics Division
304
286
1,246
1,228
Non-allocated items
- 36
- 18
- 164
- 146
Operating profit before amortisation (EBITA)
247
403
2,348
2,504
Operating profit (EBIT)
200
363
2,163
2,326
Financial items, net
- 195
- 127
- 728
- 659
Profit for the period
- 48
137
1,334
1,519
Capital
Total assets
37,000
35,552
-
34,647
Equity
13,646
12,718
-
13,932
Net interest-bearing debt
16,293
15,671
-
14,449
Invested capital, end of period
30,363
28,813
-
28,770
Cash flows
Cash flows from operating activities
468
1,007
3,136
3,675
Cash flows from investing activities
- 1,654
- 1,524
- 1,279
- 1,149
Free cash flow
- 1,186
- 517
1,857
2,526
Adjusted free cash flow
- 327
258
2,188
2,773
Q1
Q1
LTM
Full year
DKK m
2024
2023
(Restated)*
2023-24
2023
(Restated)*
Key operating and return ratios
Average number of employees (FTE)
14,043
12,382
13,438
13,191
Revenue growth (reported), %
10.6
8.6
2.5
1.6
EBITDA-margin, %
13.6
15.3
17.4
17.9
EBITA-margin, %
3.5
6.4
8.4
9.2
EBIT-margin, %
2.9
5.7
7.7
8.5
Return on invested capital (ROIC), %
-
-
6.9
7.6
ROIC before acquisition intangibles (ROIC BAI), %
-
-
9.6
10.5
Return on equity, %
-
-
10.2
11.3
Key capital and per share ratios
Financial leverage, times
3.2
3.0
3.2
2.9
Equity ratio, %
36.9
35.8
-
40.2
Earnings per share (EPS), DKK
- 0.89
2.43
23.67
26.89
Dividend paid per share, DKK
3.00
5.00
3.00
5.00
Number of shares, end of period, '000
58,632
58,632
-
58,632
Share price, DKK
200.4
277.8
-
223.0
ESG key figures
Emissions per GT mile - Own fleet (CO2)
12.2
12.4
12.1
12.1
Lost-time injury frequency (LTIF) - Sea
3.7
4.3
3.5
3.8
Lost-time injury frequency (LTIF) - Land
8.3
10.8
7.6
8.1
Women ratio - Total workforce
24
24
-
23
Women ratio - Board of Directors
33
33
-
33
* IFRS 16 and IAS 1, refer to notes 1 and 8.
Definitions on pages 28-29..
Q1 2024 interim report
Outlook 2024
4/30
→ EBIT of DKK 2.0-2.4bn
→ Revenue growth of 8-11%
→ Adjusted free cash flow of around
DKK 1.5bn
The outlook for 2024 builds on multiple
assumptions and may therefore change
significantly as the year progresses.
General market growth prospects
Europe’s economic growth in 2024 is still
expected to only rebound slightly and pick
up gradually through the year. Growth in
northern Europe, including Germany and
the UK, is also still expected to be lower
than in southern Europe.
Key freight outlook assumptions for 2024
Freight ferry volumes increased more than
expected in Q1 2024 and for the rest of the
year volumes are overall expected to grow
organically compared to 2023. Rates were
impacted by competitive dynamics in Q1
2024 and this is likely to continue.
Margin pressure in transport markets
remained elevated in Q1 2024 and markets
are expected to only firm up gradually as
demand rebounds and overcapacity in
haulage markets decreases.
Key passenger outlook assumptions
for 2024
Due to FRS Iberia/Maroc’s overweight of
passenger revenue, the activity is reported
as part of the Ferry Division’s passenger
result along with the three other business
units with passenger activities – Passenger,
Channel, and Baltic Sea.
Organic passenger volume growth is
expected to be positive in the rest of 2024
driven by mainly higher Channel volumes
and a smaller positive impact from a
continued recovery in the number of
overseas passengers.
Revenue outlook
The Group’s revenue is expected to grow by
8-11% compared to 2023. The revenue
growth outlook was increased from
previously 5-8% due to the agreement
announced in April 2024 to acquire the
international transport network of Ekol
Logistics.
The Ferry Division’s revenue is increased by
the addition of FRS Iberia/Maroc and the
introduction of ETS surcharges that is being
passed through to both freight customers
and passengers. Higher volumes are also
expected to increase revenue.
The Logistics Division’s revenue is expected
to be increased by full-year impacts of
acquisitions completed in 2023 and the
Ekol Logistics’ acquisition agreement as
well as pockets of organic growth from
especially contract logistics.
Earnings outlook - EBIT
Based on the above assumptions, the
Group’s EBIT is unchanged expected to be
within a range of DKK 2.0-2.4bn (2023:
DKK 2.3bn).
In comparison to 2023, EBIT will in the rest
of 2024 still be negatively impacted by
several one-off items reported in 2023. The
net bunker cost is expected to be higher in
Q2 2024 due to a positive earnings impact
in 2023 from elevated oil price spreads and
related hedging. Passenger earnings were
in Q3 increased by the reversal of a
provision related to Covid-19. The sale and
leaseback of three freight ferries in Q4
2023 entailed a one-off gain of DKK 95m
and will moreover increase depreciation in
2024. The total EBIT impact of the above
items remains around DKK -300m for the
full year.
Capital expenditure (Capex)
Operating Capex, i.e. excluding
acquisitions and other transactions, is still
expected to amount to around DKK 1.75bn
in 2024. No purchases of new or second-
hand ferries are expected.
Adjusted free cash flow
The Adjusted free cash flow is expected to
be around DKK 1.5bn in 2024.
Acquisitions
The acquisition of FRS Iberia/Maroc was
completed on 10 January 2024.
Outlook 2024
OUTLOOK 2024
DKK m
Outlook 2024
Outlook
February 2024
2023
(Restated)
Revenue growth
8-11%
5-8%
27,304
EBIT
2,000-2,400
2,000-2,400
2,326
Per division:
Ferry Division
1,675-1,975
1,675-1,975
2,098
Logistics Division
525-625
525-625
469
Non-allocated items
- 200
- 200
- 242
Capital expenditure (Capex)
- 1,750
- 1,750
- 115
Types:
Operating
- 1,750
- 1,750
- 1,581
Ferries (sale/purchase/new-buildings)
0
0
1,466
Adjusted free cash flow
Around 1,500
Around 1,500
2,773
Disclaimer
The statements about the future in this
announcement contain elements of risk
and uncertainty which means that actual
developments may diverge significantly.
Q1 2024 interim report
Ferry Division
5/30
→ Revenue up 10% to DKK 4.2bn
→ Strait of Gibraltar routes included
from 10 January 2024
→ EBITDA reduced 2% to DKK 688m
by lower Baltic Sea result and
higher net bunker cost
→ EBIT reduced 33% to DKK 169m by
higher depreciation
→ 3% lower CO2 ferry emission
intensity
Q1 volumes and activity
Total Q1 freight volumes increased 8.9%
compared to Q1 2023 and increased 4.2%
adjusted for the acquisition of routes on
Strait of Gibraltar and closure of Calais-
Tilbury.
Volumes increased in all business areas
reflecting a general pick-up in activity
across the network compared to a
relatively low activity level in Q1 2023. The
highest growth was achieved in the Baltic
Sea and Channel networks. The Easter
timing difference versus 2023 reduced
volumes in March compared to 2023.
Q1 passenger volumes increased 79.7% to
1.1m compared to 2023 and increased
20.8% adjusted for the acquisition of routes
on Strait of Gibraltar. The adjusted growth
was driven by more passengers on the
Channel, partly from a higher share in the
coach market.
Financial performance
Revenue
Q1 revenue increased 10.3% to DKK 4,214m
compared to 2023 and increased 4.1%
adjusted for the acquisition of routes on
Ferry Division
Ferry Division
Q1
Q1
Q2
Q3
Q4
LTM
Full-year
DKK m
2024
2023
(Restated)
2023
(Restated)
2023
(Restated)
2023
(Restated)
2023-24
2023
(Restated)
Revenue
4,214
3,820
4,176
4,506
3,990
16,887
16,493
Freight
3,286
3,269
3,184
2,994
3,235
12,700
12,683
Passenger
928
551
992
1,512
755
4,187
3,810
Operating costs
- 2,519
- 2,271
- 2,214
- 2,300
- 2,332
- 9,364
- 9,116
Ferry operations
- 674
- 549
- 521
- 536
- 539
- 2,270
- 2,145
Bunker
- 760
- 752
- 713
- 791
- 865
- 3,128
- 3,120
Port terminal operations
- 913
- 794
- 796
- 808
- 755
- 3,272
- 3,152
Transport and warehouse solutions
- 171
- 176
- 184
- 166
- 173
- 695
- 699
Employee costs
- 719
- 630
- 639
- 668
- 666
- 2,692
- 2,603
Sales, general and administration
- 288
- 216
- 246
- 268
- 235
- 1,038
- 965
EBITDA
688
704
1,078
1,269
758
3,793
3,808
Freight
617
694
728
511
642
2,499
2,577
Passenger
71
9
350
758
115
1,294
1,232
Other income/costs, net
- 1
- 2
- 8
- 12
90
69
68
Depreciation and impairment
- 510
- 407
- 419
- 434
- 481
- 1,843
- 1,740
EBITA
178
295
651
824
367
2,019
2,136
Amortisation
- 9
- 9
- 9
- 9
- 9
- 37
- 38
EBIT
169
286
641
814
358
1,982
2,098
Invested capital, end of period
22,659
21,631
21,501
21,870
21,170
22,659
21,170
EBITDA-margin, %
16.3
18.42
25.8
28.2
19.0
22.5
23.1
EBITA-margin, %
4.2
7.7
15.6
18.3
9.2
12.0
13.0
EBIT-margin, %
4.0
7.5
15.4
18.1
9.0
11.7
12.7
Gross Capex (excl. acquisitions and leases)
431
438
150
264
281
1,126
1,132
ROIC before acquisition intangibles, %, LTM
11.4
13.3
12.9
12.5
12.1
11.4
12.1
ROIC, %, LTM
8.9
10.4
10.1
9.8
9.5
8.9
9.5
Average number of employees
7,027
6,327
6,432
6,516
6,546
6,570
6,546
Number of ships
73
65
65
65
66
67
66
Lane metres, '000
10,508
9,647
9,795
9,455
9,545
39,304
38,443
North Sea *
3,522
3,508
3,600
3,408
3,327
13,857
13,843
Mediterranean
1,403
1,345
1,375
1,274
1,412
5,465
5,407
Channel
4,150
3,993
4,026
3,953
3,979
16,107
15,950
Baltic Sea
868
802
794
820
827
3,309
3,243
Strait of Gibraltar
566
0
0
0
0
566
0
Capacity utilisation freight, %
60
59
56
53
60
57
57
Number of cars, '000
236
152
301
495
206
1,238
1,154
Passengers, '000
1,114
619
1,205
1,812
866
4,997
4,502
Definitions on page 28.
*Includes volumes for the routes Oslo-Frederikshavn-Copenhagen and Amsterdam-Newcastle.
The Ferry Division operates a network of
ferry routes in and around Europe. The North
Sea and Mediterranean networks only
transport freight while combined freight and
passenger routes are operated by the
Channel, Baltic Sea, and Strait of Gibraltar
networks. Port terminals are operated in
select locations.
Q1 2024 interim report
Ferry Division
6/30
Strait of Gibraltar as well as bunker and
ETS surcharges.
The adjusted freight ferry revenue was up
1.0% as a positive impact from higher
volumes was offset by lower rates in
network areas with overcapacity. The
adjusted passenger revenue increased
20.6% driven by growth in passenger
volumes and spend on primarily the
Channel. Both passenger and freight
volumes were in line with expectations on
the Strait of Gibraltar routes in Q1 2024.
EBITDA
EBITDA decreased 2.2% or DKK 15m to
DKK 688m. The freight ferry EBITDA
decreased DKK 77m to DKK 617m driven by
lower results in the Baltic Sea and Channel
business areas as well as a higher net
bunker cost due to mainly a reduction in oil
price spreads. The passenger EBITDA
increased DKK 62m to DKK 71m driven
mostly by the higher Channel volumes. The
result for Strait of Gibraltar was not
material as Q1 is a low-season period in
that market.
EBITA and EBIT
EBITA decreased 39.6% or DKK 117m to
DKK 178m as depreciation increased
DKK 103m to DKK 510m. Almost half of the
increase was due to higher depreciation of
dockings following a higher level of
dockings and a general docking cost
increase. In addition, depreciation was
increased by a shorter depreciation period
for three freight ferries that was sold and
leased back in 2023 as well as the addition
of the Strait of Gibraltar routes since
January 2024.
EBIT decreased 40.9% or DKK 117m to
DKK 169m.
Capex
Capex, excluding acquisitions, amounted
to DKK 431m in Q1 2024 of which DKK 421m
was related to ferry dockings and
improvements as well as scrubber
installations.
Invested capital and ROIC
The invested capital at the end of Q1 2024
increased 4.8% or DKK 1,029m to
DKK 22.7bn compared to Q1 2023. The
addition of the Strait of Gibraltar routes
increased the invested capital by
DKK 1.4bn. The invested capital was
DKK 17.5bn excluding acquisition
intangibles.
The return on invested capital before
acquisition intangibles, ROIC BAI, was
11.4% compared to 12.1% in 2023, and
ROIC was 8.9% compared to 9.5% in 2023.
Freight ferry – transported lane metres, LM ‘000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4
2022
2023
2024
Q1 2024 interim report
Logistics Division
7/30
→ Revenue up 10% to DKK 3.1bn
→ Positive impact from acquisitions
→ EBITDA increased 6% by
acquisitions to DKK 304m,
underlying result below 2023
→ EBIT reduced 22% to DKK 94m
Q1 overview and activity
The overall development in Dry Goods
volumes was mixed across the three
regions. Baltic volumes were lower driven
by both the Finnish and Swedish activities.
Activity levels were also soft for the
Norwegian and Danish activities. This was
offset by higher Sweden-UK volumes and
continued ramp-up of warehousing activity.
Continent-UK volumes were overall
maintained above 2023 while automotive
volumes and part-loads were lower in the
quarter, also due to the Easter holiday in
March. New activities launched in Poland
continued to grow.
Cold Chain volumes were mostly below
2023 due to a continued slowdown in meat
markets. The first of three new UK border
checks was introduced end of January
2024 which resulted in teething issues and
a lower activity level for continental exports
to the UK. Scottish and English seafood
volumes were also in Q1 below 2023 but are
expected to pick up again through 2024.
Volumes between Northern Ireland and
England/Scotland were solid in the quarter.
Due to the general European volume
slowdown, overcapacity persisted in
Logistics Division
Logistics Division
Q1
Q1
Q2
Q3
Q4
LTM
Full-year
DKK m
2024
2023
(Restated)
2023
(Restated)
2023
(Restated)
2023
(Restated)
2023-24
2023
(Restated)
Revenue
3,130
2,849
3,088
2,985
3,173
12,377
12,096
Dry Goods
1,560
1,562
1,586
1,506
1,577
6,229
6,231
Cold Chain
1,557
1,278
1,487
1,484
1,583
6,111
5,831
Operating costs
Transport and warehousing costs
- 1,967
- 1,874
- 1,927
- 1,876
- 2,004
- 7,774
- 7,681
Gross profit
1,163
975
1,161
1,109
1,170
4,603
4,415
Sales, general and administration
- 190
- 171
- 178
- 182
- 176
- 726
- 706
Employee costs
- 668
- 517
- 648
- 620
- 696
- 2,631
- 2,481
EBITDA
304
286
336
307
298
1,246
1,228
Other income/costs, net
7
4
4
5
7
23
20
Depreciation and impairment
- 197
- 152
- 170
- 179
- 190
- 737
- 692
EBITA
115
138
170
132
115
532
555
Amortisation
- 21
- 18
- 24
- 16
- 27
- 89
- 86
EBIT
94
120
146
116
87
443
469
Gross profit margin, %
37.1
34.2
37.6
37.2
36.9
37.2
36.5
EBITDA-margin, %
9.7
10.1
10.9
10.3
9.4
10.1
10.1
EBITA-margin, %
3.7
4.8
5.5
4.4
3.6
4.3
4.6
EBIT-margin, %
3.0
4.2
4.7
3.9
2.8
3.6
3.9
Invested capital, end of period
6,903
6,287
6,305
6,472
6,746
6,903
6,746
Gross Capex (excl. acquisitions and leases)
127
144
74
94
126
421
438
ROIC before acquisition intangibles, %, LTM
10.2
16.0
15.2
13.4
11.6
10.2
11.6
ROIC, %, LTM
5.2
8.7
8.0
7.0
6.0
5.2
6.0
Average number of employees
5,997
5,159
5,410
5,585
5,696
5,569
5,696
Definitions on page 28.
The Logistics Division provides transport
and logistics solutions through two business
units: Dry Goods and Cold Chain. The
geographical scope of both business units is
focused on the Nordics, northern
continental Europe, and UK/Ireland.
Q1 2024 interim report
Logistics Division
8/30
haulage markets in the quarter which
underpinned margin pressure in transport
markets.
Financial performance
Revenue
Q1 revenue increased 9.9% to DKK 3,130m
compared to Q1 2023 and decreased 1.9%
adjusted for acquisitions. The adjusted
decrease reflects the overall lower activity
level as well as a decline in surcharge
levels for amongst other things fuel and
energy costs.
EBITDA
EBITDA increased 6.3% to DKK 304m and
decreased 14.3% or DKK 39m adjusted for
acquisitions. The decrease was primarily
due to a lower result for the Nordic and
Continent Cold Chain business areas
following a slowdown in meat market
volumes and a new UK border check
(Export Health Cerftificates) .
The EBITDA for all other business areas
was almost on level with 2023, including a
continued ramp-up in warehousing
earnings.
EBITA and EBIT
EBITA decreased 16.8% or DKK 23m to
DKK 115m as depreciation increased
DKK 46m to DKK 197m. The majority of the
depreciation increase was due to
acquisitions. The EBITA-margin decreased
to 3.6% from 4.8% in Q1 2023.
EBIT decreased 21.5% or DKK 26m to
DKK 94m following an increase in
amortisation of DKK 3m.
Capex
Capex, excluding acquisitions, amounted
to DKK 127m in Q1 2024 consisting
primarily of cargo carrying equipment,
including charging stations for e-trucks,
and warehouse upgrades, including solar
panel installations.
Invested capital and ROIC
The invested capital increased 9.8% or
DKK 0.6bn to DKK 6.9bn at the end of Q1
2024. The increase in invested capital was
mainly due to acquisitions as well as an
increase in working capital. The invested
capital was DKK 4.5bn excluding
acquisition intangibles.
The return on invested capital before
acquisition intangibles, ROIC BAI, was
10.2% compared to 11.6% in 2023, and
ROIC decreased to 5.2% compared to
6.0% in 2023.
Logistics Division – EBIT per quarter, DKK m
0
20
40
60
80
100
120
140
160
180
Q1 Q2 Q3 Q4
2022
2023
2024
Q1 2024 interim report
ESG review
9/30
→ CO2 emissions from route network
reduced by 3%
→ EU funding application for
ammonia ferries submitted
→ Women in management positions
increased from 16% to 20%
→ 105 e-trucks in operation +
additional 120 to be delivered
ESG actions and plans
Environment
Across DFDS’ network our decarbonisation
transition plan is focused on four main
capabilities: increasing efficiency,
transitioning to green fuels, electrifying
assets, and implementing circularity in our
value chain.
In Q1 2024, the distance sailed was
reduced 2% and at the same time fuel
consumption was reduced 3% compared to
Q1 2023. The increased efficiency was
achieved for both own and chartered
vessels deployed across the route network.
Own fleet emissions were reduced 1.6% to
12.2 g/CO2/GT per nautical mile from 12.4
g/CO2/GT per nautical mile in Q1 2023.
Emissions from the entire route network
were lowered 3.1% to 12.3 g/CO2/GT per
nautical mile from 12.7 g/CO2/GT per
nautical mile in Q1 2023.
Improvements in CO2 efficiency continue to
be driven by various incremental vessel
upgrades and the schedule optimisation
program Every Minute Counts focused on
reducing turnaround time in port terminals,
schedules enabling lower speed, and
reduced fuel consumption.
ESG review
ESG data
Q1**
Q1*
LTM
Full-year*
Unit
2024
2023
2023-24
2023
Environmental data
Total distance sailed
Nautical miles
1,346,254
1,368,060
5,638,878
5,660,684
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet)
gCO2
12.2
12.4
12.1
12.1
CO2 emissions per GT nautical mile (Route network)
gCO2
12.3
12.7
12.2
12.3
Energy consumption
Total fuel consumption (Route network)
Tonnes
179,504
184,896
739,797
745,189
Oil spills
Spills (>1 barrel)
Number
0
0
0
0
Social data
Representation of women
Total workforce:
%
24
24
-
23
Non-officed based
%
13
13
-
11
Office based
%
44
44
-
44
Senior management
%
18
15
-
18
Managers
%
20
16
-
18
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mio. hours
3.7
4.3
3.5
3.8
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mio. hours
8.3
10.8
7.6
8.1
Fatalities
Colleagues
Accidents
0
0
0
0
Contractors
Accidents
0
1
0
1
Governance data
Representation of women in the Board (AGM elected members)
%
33
33
-
33
Board nationality - non-Danish (AGM elected members)
%
33
33
-
33
Independent directors (AGM elected members)
%
83
83
-
83
Attendance at Board meetings (All Board members)
%
100
100
99
99
Whistle-blower reporting
Cases
18
16
53
51
Definitions on page 29.
* 2023 Q1 and Q2 ESG data excludes McBurney Transport Group (acquired in February 2023) and Lucey Transport Logistics (acquired in September 2022). 2023 data excludes Estron Group (acquired in September 2023)
** 2024 Q1 ESG data excludes FRS Iberia/Maroc (acquired January 2024)
Q1 2024 interim report
ESG review
10/30
Social
Diversity, Equity & Inclusion (DE&I)
The continued focus on driving awareness
and targeting selected employee segments
is beginning to show strong results.
Women’s representation in management
positions has increased notably from 16%
in Q1 2023 to 20% in Q1 2024. Women
representation within senior management
has also increased from 15% in Q1 2023 to
18% in Q1 2024.
The impact of logistics acquisitions
continues to challenge the women
representation across the total workforce
as it is maintained at 24% in Q1 for both
2023 and 2024.
Safety
Focus remains high on ensuring DFDS is a
safe place to work and employees feel
secure and protected from work related
illness and injuries. Focus continues to be
on developing an effective safety culture,
increase awareness, and improve reporting
and knowledge sharing. In Q1 2024, the
implementation of the new Health & Safety
reporting system was completed for all
land-based locations – raising awareness,
improving the speak up culture, and more
reports being made.
LTIF (Lost Time Injury Frequency) for land-
based operations saw a positive decrease
from 10.8 in Q1 2023 to 8.3 in Q1 2024. The
LTIF for the sea-based operation also
improved from 4.3 in Q1 2023 to 3.7 in Q1
2024.
Governance
In Q1 2024, an updated version of the DFDS
Code of Conduct was launched. The Code
of Conduct provides guidance on behaviour
and interaction with stakeholders for all
DFDS employees.
The number of reported whistleblower
cases increased to 18 in Q1 2024 from 16 in
Q1 2023 indicating that efforts to raise
awareness of the whistleblower system are
having an impact.
Ferry
Decarbonisation activities
The key environmental challenge is to
decarbonise ferry operations by continually
increasing efficiency and by in parallel
replacing fossil fuels with low- and zero
emission fuels.
Delivering on the green transition requires
collaboration with a range of stakeholders,
including public institutions. We therefore
actively engage in research, development,
and deployment (RD&D) projects that are
seeking, or have received public funding,
from for example the European Union,
national, or regional governments.
In Q1 2024, we submitted an application to
the EU’s Innovation Fund for a project that
aims to establish the world’s first green
corridor for RoRos powered by green
ammonia as a zero-emission shipping fuel.
In Q1 2024 a new shore-power facility was
put into commission in Vlaardingen
terminal at the quay of the Immingham–
Vlaardingen route. The new shore-power
unit has a 1.8-MW capacity and is expected
to supply 3.5 GWh of electricity per year.
The estimated annual decrease in CO2e
WtW emissions is approximately 2,100-
2,300 tonnes.
In addition, shore power will improve local
air quality as particulate matter and
nitrogen oxides emissions are reduced and
local living conditions will benefit from the
drop in noise levels.
Social performance
The representation of women has been
stable in 2023 for both the land-based and
the sea-based organisations within the
Ferry Division. Q1 2024 saw an
improvement for the land-based operation
with an increase from 30% in Q1 2023 to
33% in Q1 2024. The sea-based operation
also increased from 19% in Q1 2023 to 20%
in Q1 2024. The acquisition of FRS
Iberia/Maroc has been a positive driver of
both data points.
The land-based LTIF for the Ferry division
declined from 14.9 in Q1 2023 to 7.8 in Q1
2024. The significant decrease continues
the positive trend seen in recent quarters.
The positive impact primarily comes from a
new reporting tool putting focus on
accidents and root cause analysis.
The sea-based LTIF decreased from 4.3 in
Q1 2023 to 3.7 in Q1 2024. The sea-based
safety organisation continues to focus on
the safety culture and on sharing lessons
learned from accidents and near misses
throughout the organisation.
Logistics
Decarbonisation activities
Logistics decarbonisation initiatives were in
Q1 2024 focused on further deployment of
e-trucks, installation of charging stations,
and continued development of a more
robust data foundation for the green
transition.
During the quarter an additional 20 e-
trucks were deployed - eight in Karlshamn,
Sweden, 10 in Cuxhaven, Germany and two
in Wijchen, the Netherlands. By end of Q1
2024, a total of 105 e-trucks were deployed
across DFDS. In Q1 2024, a new order of
100 Volvo e-trucks was added the original
order of 125 e-trucks. The new electric
trucks will be deployed in markets across
Europe to meet the growing customer
demand for e-mobility solutions.
DFDS’ charging capacity was also
increased during Q1 2024. Charging
facilities in Gothenburg, Sweden and
Ghent, Belgium have been upgraded and a
new installation was completed in Wijchen,
the Netherlands.
Q1 2024 interim report
ESG review
11/30
Social performance
The share of women’s representation in the
Logistics Division was reduced from 17% in
Q1 2023 to 15% in Q1 2024. The decline
was due to acquisitions made during the
year. Despite the structural challenges
within the industry DFDS continues to
maintain a strong and dedicated focus on
Diversity, Equity & Inclusion to improve
minority representation.
The safety performance for the Logistics
division improved in Q1 2024 as the LTIF
was reduced to 10.3 compared to 10.7 in
Q1 2023.
Q1 2024 interim report
Group review
12/30
→ Capital distribution of DKK 600m
to shareholders on track
→ Financial leverage increased by
acquisition of FRS Iberia/Maroc
→ Q1 cash flow reduced by seasonal
working capital increase
Major Q1 events
Ferry network expanded to Strait of
Gibraltar
On 10 January 2024, the acquisition of FRS
Iberia/Maroc was completed. The company
has a leading position on the Strait of
Gibraltar short-sea ferry market connecting
Spain and Morocco.
The acquisition expands DFDS’ network to
a region where growth in the coming years
is expected to be supported by nearshoring
of supply chains closer to Europe.
FRS Iberia/Maroc has three routes
operated by a total of 850 staff of which
just over 400 are own employees. Revenue
was DKK 1.0bn for 2023.
Read more here.
Bond issue
Two tranches of senior unsecured bonds of
NOK 1,750m in total were issued in March
2024 to further diversify the loan portfolio.
Read more here.
Another 100 e-trucks ordered
To decarbonise and meet growing
customer demand for low emission road
transport solutions, another 100 e-trucks
(electric trucks) were ordered through a
leasing agreement with Volvo Trucks for
delivery in 2024 and 2025.
Read more here.
Major events after Q1
Logistics network expanded to Türkiye
In April 2024, an agreement was entered
into to acquire the international transport
network of Ekol Logistics, a leading Turkish
transport and logistics company head-
quartered in Istanbul.
The acquired network transports goods
between Türkiye and Europe with own
offices and facilities in 10 European
countries. The acquisition expands DFDS’
network to a high-growth region supported
by nearshoring of supply chains closer to
Europe.
Read more here.
New CFO appointed
Karen Dyrskjøt Boesen was in April 2024
appointed new CFO for the DFDS Group
starting on 1 July 2024. She replaces
Karina Deacon leaving on 8 May.
Karen Dyrskjøt Boesen (53) has a strong
background from both Danish and
international companies with executive
roles spanning the commercial and
business development side to strategy,
finance, and performance related roles.
Read more here.
Capital distribution to shareholders
A total of DKK 600m is to be distributed to
shareholders in 2024 through a
combination of a dividend and a share
buyback.
An ordinary dividend of DKK 3.00 per share
equal to DKK 169m was paid in March
2024.
A share buyback under the Safe Harbour
rules of up to DKK 431m was initiated on
12 February 2024 with expiry on 31
December 2024. At the end of Q1 2024, a
total of 381,284 shares were purchased for
DKK 78m.
Group review
Moving Together Towards 2030
Unlocking value, 2024-2026
• Protect & Grow Profits
• Standardise to simplify
• Digitise to transform
• Moving to green
• Be a great place to work
Green transition, 2024-2030
• 45% reduction in ferry emission
intensity
• Six green ferries in operation by
the end of 2030
• 75% reduction of land emission
intensity
Financial ambitions, 2024-
2026/27
• Annual Adjusted free cash flow of
DKK 1.5bn
• Capex of DKK 1.5-2.0bn annually
• ROIC of around 10% by 2027
• NIBD/EBITDA of 2.5x by 2026
See full strategy update here
Q1 2024 interim report
Group review
13/30
Reduction of share capital
On 16 April 2024, the share capital was
reduced by nominally DKK 13,239,620 from
DKK 1,172,631,560 to DKK 1,159,391,940
by cancellation of 661,981 treasury shares
of nominally DKK 20 each.
Following the share capital reduction, the
share capital amounts to DKK
1,159,391,940 divided into 57,969,597
shares of nominally DKK 20.
Financial performance
Revenue
The Group’s Q1 revenue increased 10.6% to
DKK 7,011m compared to 2023 following
higher revenue in both divisions. The
increase was 1.8% adjusted for acquisitions
and bunker/ETS surcharges.
The Ferry Division’s Q1 revenue increased
10.3% to DKK 4,214m compared to 2023
and increased 4.1% adjusted for the
acquisition the Strait of Gibraltar routes
and bunker/ETS surcharges.
The Logistics Division’s Q1 revenue
increased 9.9% to DKK 3,130m compared
to 2023 and decreased 1.9% adjusted for
acquisitions.
EBITDA
The Group’s Q1 EBITDA decreased 1.6% or
DKK 15m to DKK 957m.
The Ferry Division’s Q1 EBITDA decreased
2.2% or DKK 15m to DKK 688m following
lower freight earnings while passenger
earnings were above 2023. The Logistics
Division’s Q1 EBITDA increased 6.3% or
DKK 18m to DKK 304m. Non-allocated
items was a cost of DKK 36m compared to
DKK 18m in 2023.
EBITA and EBIT
Q1 depreciation increased 25.5% or
DKK 146m to DKK 716m following increases
of DKK 103m in the Ferry Division and DKK
45m in the Logistics Division. Depreciation
related to Non-allocated items decreased
DKK 2m.
Operating profit before
depreciation (EBITDA)
DKK m
Q1 2024
Q1 2023
(Restated)
Change, %
Change
Ferry Division
688
704
- 2.2
- 15.4
Logistics Division
304
286
6.3
18.1
Non-allocated items
- 36
- 18
- 97.7
- 17.9
DFDS Group
957
972
- 1.6
- 15.3
EBITDA-margin, %
13.6
15.3
- 11.0
- 1.7
Revenue
DKK m
Q1 2024
Q1 2023
Change, %
Change
Ferry Division
4,214
3,820
10.3
394
Logistics Division
3,130
2,849
9.9
281
Non-allocated items
203
177
14.6
26
Eliminations
- 536
- 505
- 6.0
- 30
DFDS Group
7,011
6,341
10.6
671
DFDS GROUP - EBIT
0
200
400
600
800
1,000
1,200
Q1 Q2 Q3 Q4
DKK m
2022
2023
2024
Q1 2024 interim report
Group review
14/30
The Group’s Q1 EBITA decreased 38.7% or
DKK 156m to DKK 247m. Amortisation in Q1
increased 16.3% or DKK 7m to DKK 47m.
The Group’s Q1 EBIT hereafter decreased
44.8% or DKK 163m to DKK 200m.
Financial items
Total net financial items in Q1 were a cost
of DKK 195m, an increase of DKK 69m
compared to Q1 2023. The net interest cost
increased DKK 71m to DKK 203m
consisting of DKK 125m of interest cost on
financial debt and DKK 78m of interest cost
on leasing debt. The increase in the interest
cost on financial debt was entirely due to a
higher interest rate as financial debt was
reduced 5.4%. The increase in the interest
cost on leasing debt was due to a
combination of higher interest rate and
debt as leasing debt increased 20.6%.
Exchange rate adjustments amounted to a
net gain of DKK 19m compared to a gain of
DKK 13m in Q1 2023.
Profit before and after tax
The Q1 profit before tax decreased
DKK 231m to DKK 5m. The tax cost was
DKK 52m and the profit for the period was a
loss of DKK 48m.
Earnings per share
Q1 earnings per share (EPS) decreased to
DKK -0.89 from DKK 2.43 in Q1 2023.
Cash flow and investments
The Q1 cash flow from operating activities
decreased 53.5% to DKK 468m compared
to Q1 2023 following a negative cash flow
from working capital of DKK 325m as well
as higher net interest payments and taxes
paid. The cash flow reduction from working
capital was driven mainly by the early
Easter that generally delayed payments.
Q1 investments was a cash outflow of
DKK 1,654m consisting of DKK 556m of
capex and DKK 1,098m used for the
acquisition of the routes on Strait of
Gibraltar.
The Q1 cash flow from financing activities
was positive by DKK 1,392m and included a
net loan inflow of DKK 1,877m of which the
issue of corporate bonds amounted to
DKK 1,203m. Payment of lease liabilities
was DKK 242m.
The net increase in cash was DKK 206m
and at the end of Q1 2024 cash amounted
to DKK 944m.
The Q1 2024 adjusted free cash flow (FCFE)
was DKK -327m and for LTM it was
DKK 2,188m which included an inflow from
the sale and leaseback of three ferries in
2023.
Invested capital and ROIC
Invested capital increased 5.4% or
DKK 1.6bn to DKK 30.4bn at the end of Q1
2024 compared to 2023. The increase was
mainly due to acquisitions.
The return on invested capital before
acquisition intangibles, ROIC BAI, was 9.6%
in Q1 2024 compared to 10.5% for 2023.
ROIC was 6.9% in Q1 2024 compared to
7.6% for 2023.
Capital structure
At the end of Q1 2024 net-interest-bearing
debt (NIBD) was DKK 16.3bn, an increase of
4.0% from the end of Q1 2023 driven by the
increase in the invested capital.
Financial leverage, as measured by the
ratio of NIBD to EBITDA for the last twelve
months (LTM), was 3.2x at the end of Q1
2024 compared to 3.0x at the end of Q1
2023 and 2.9x at year-end 2023.
Equity
Equity amounted to DKK 13,646m at the
end of Q1 2024, including non-controlling
interests of DKK 74m, an increase of 7.3%
compared to the end of Q1 2023.
Compared to year-end 2023, the equity
decreased 2.1% or DKK 286m. Total
comprehensive income for Q1 2024 was
DKK -46m while transactions with owners
was DKK -240m, including a dividend of
DKK 176m and a share buyback of
DKK 72m.
The equity ratio decreased to 37% at the
end of Q1 2024 compared to 39% at the
end of Q1 2023 and 40% at year-end 2023.
EBITA and EBIT
DKK m
Q1 2024
Q1 2023
(Restated)
Change, %
Change
EBITDA
957
972
- 1.6
- 15
Associates and joint ventures
- 1
- 8
85.0
7
Profit/loss on disposals
8
10
- 21.5
- 2
Depreciation and impairment
- 716
- 570
- 25.5
- 146
EBITA
247
403
- 38.7
- 156
Amortisation
- 47
- 41
- 16.3
- 7
EBIT
200
363
- 44.8
- 163
Financial items
DKK m
Q1 2024
Q1 2023
(Restated)
Change, %
Change
Interests, net
- 203
- 131
- 54.1
- 71
Foreign exchange gains/losses, net
19
13
43.3
6
Other items, net
- 12
- 9
- 39.7
- 3
Total finance, net
- 195
- 127
- 54.3
- 69
Q1 2024 interim report
Management statement
15/30
Management
statement
Q1 2024 interim report
Financials
16/30
DFDS Group - Income statement
DKK m
Note
Q1
2024
Q1
2023
(Restated)
LTM
2023-24
Full-year
2023
(Restated)
Revenue
3
Costs
Ferry and other ship operation and maintenance
- 1,500
- 1,395
- 5,702
- 5,597
Port terminal operations
- 942
- 815
- 3,390
- 3,263
Transport and warehouse solutions
- 1,749
- 1,638
- 6,887
- 6,776
Employee costs
- 1,525
- 1,255
- 5,842
- 5,572
Cost of sales, general and administration
- 338
- 266
- 1,279
- 1,206
Operating profit before depreciation and amortisation (EBITDA)
Share of profit/loss of associates and joint ventures
- 1
- 8
- 19
- 26
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
- 412
- 317
- 1,460
- 1,365
Depreciation and impairment losses, other non-current assets
- 304
- 253
- 1,159
- 1,108
Operating profit before amortisation (EBITA)
Amortisation and impairment losses, intangibles
- 47
- 41
- 185
- 178
Operating profit (EBIT)
Financial income
Financial costs
- 221
- 153
- 801
- 739
Profit before tax
Tax on profit
- 52
- 99
- 101
- 148
Profit for the period
- 48
Attributable to:
Equity holders of DFDS A/S
- 50
Non-controlling interests
Profit for the period
- 48
Earnings per share
Basic earnings per share (EPS) of DKK 20, DKK
- 0.89
Diluted earnings per share (EPS-D) of DKK 20, DKK
- 0.89
DFDS Group - Statement of comprehensive income
DKK m
Q1
2024
Q1
2023
(Restated)
LTM
2023-24
Full-year
2023
(Restated)
Profit for the period
- 48
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations
- 21
- 21
Tax on items that will not be reclassified to the Income statement
Items that will not be reclassified subsequently to the Income statement
- 15
- 15
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
- 10
- 177
- 119
Value adjustment transferred to operating costs
- 29
- 71
- 110
Value adjustment transferred to financial costs
- 4
Foreign exchange adjustments, subsidiaries
- 9
Items that are or may be reclassified subsequently to the Income statement
- 166
- 146
Total other comprehensive income after tax
- 181
- 162
Total comprehensive income
- 46
Attributable to:
Equity holders of DFDS A/S
- 48
Non-controlling interests
Total comprehensive income
- 46
Q1 2024 interim report
Financials
17/30
DFDS Group - Balance sheet, Assets
31 Mar.
31 Mar.
31 Dec.
DKK m
2024
2023
(Restated)
2023
(Restated)
Goodwill
Other non-current intangible assets
Software
Development projects in progress
Non-current intangible assets
Land and buildings
Terminals
Ferries and other ships
Equipment, etc.
Assets under construction and prepayments
Right-of-use assets
Non-current tangible assets
Investments in associates, joint ventures and securities
Receivables
Prepaid costs
Deferred tax
Derivative financial instruments
Other non-current assets
Non-current assets
Inventories
Trade receivables
Receivables from associates and joint ventures
Other receivables
Prepaid costs
Derivative financial instruments
Cash
Current assets
Assets
DFDS Group - Balance sheet, Equity and Liabilities
31 Mar.
31 Mar.
31 Dec.
DKK m
2024
2023
(Restated)
2023
(Restated)
Share capital
Reserves
- 456
- 285
-451
Retained earnings
Equity attributable to equity holders of DFDS A/S
Non-controlling interests
Equity
Interest-bearing liabilities
Lease liabilities
Deferred tax
Pension and jubilee liabilities
Other provisions
Derivative financial instruments
Non-current liabilities
Interest-bearing liabilities
Lease liabilities
Trade payables
Payables to associates and joint ventures
Other provisions
Corporation tax
Other payables
Derivative financial instruments
Prepayments
Current liabilities
Liabilities
Equity and liabilities
Q1 2024 interim report
Financials
18/30
DFDS Group - Statement of changes in equity 1 January - March 2024
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Equity at 1 January 2024
- 481
- 48
Comprehensive income for the period
Profit for the period
- 50
- 50
- 48
Other comprehensive income
- 9
Total comprehensive income
- 9
- 50
- 48
- 46
Transactions with owners:
Acquisition, non-controlling interests
- 19
- 7
Dividend paid
- 176
- 176
- 176
Dividend on treasury shares
Share-based payments
Share buyback
- 7
- 65
- 72
- 72
Total transactions with owners
- 7
- 214
- 220
- 19
- 240
Equity at 31 March 2024
- 489
- 55
Q1 2024 interim report
Financials
19/30
DFDS Group - Statement of changes in equity 1 January - 31 March 2023 (Restated)
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Restated balance at 1 January 2023
- 543
- 28
Comprehensive income for the period
Profit for the period
Other comprehensive income
Total comprehensive income
Transactions with owners:
Dividend paid
- 293
- 293
- 293
Dividend on treasury shares
Share-based payments
Share buyback
- 21
- 279
- 300
- 300
Total transactions with owners
- 21
- 554
- 576
- 576
Equity at 31 March 2023
- 537
- 49
Q1 2024 interim report
Financials
20/30
DFDS Group - Statement of cash flows
Q1
Q1
LTM
Full-year
DKK m
Note
2024
2023
(Restated)
2023-24
2023
(Restated)
Operating profit before depreciation and amortisation (EBITDA)
Adjustments for non-cash operating items, etc.
Change in working capital
- 249
- 765
- 338
Payment of pension liabilities and other provisions
- 13
- 7
- 50
- 44
Interest received, etc.
Interest paid, etc.
- 180
- 133
- 773
- 725
Taxes paid
- 60
- 34
- 266
- 240
Cash flows from operating activities
Investments in ferries including dockings, etc.
- 421
- 392
- 1,027
- 998
Sale of ferries
Investments in other non-current tangible assets
- 138
- 191
- 525
- 578
Sale of other non-current tangible assets
Investments in non-current intangible assets
- 20
- 20
- 83
- 83
Acquisition of enterprises, associates, joint ventures, and activities, net of cash acquired incl. earn-outs
4
- 1,098
- 949
- 1,182
- 1,033
Other investing cash flows
- 3
- 2
- 16
- 14
Cash flows from investing activities
- 1,654
- 1,524
- 1,279
- 1,149
Free cash flows
- 1,186
- 517
Proceed from bank loans and loans secured by mortgage in ferries
Repayment and instalments of bank loans and loans secured by mortgage in ferries
- 2,180
- 1,259
- 5,061
- 4,141
Proceed from issuance of corporate bonds
Payment of lease liabilities
- 242
- 177
- 864
- 799
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares and share buyback
- 72
- 300
- 72
- 300
Other financing cash flows
- 7
- 15
- 8
Dividends paid to equity holders of DFDS A/S
- 168
- 281
- 168
- 281
Cash flows from financing activities
- 1,961
- 2,980
Net cash flows
- 144
- 103
- 454
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
Cash and cash equivalents at end of period *
* At 31 March 2024 DKK 14m (31 March 2023: DKK 0m) of the cash was deposited on restricted bank accounts.
Q1 2024 interim report
Financials
21/30
Note 1: Accounting policies and
significant estimates
Basis of reporting
This section provides an overview of the Groups
principal accounting policies as well as new and
amended IFRS standards and interpretations.
Accounting policies
This interim report has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as adopted by
the EU and additional Danish disclosure requirements
for interim reports of listed companies. The interim
report has been prepared using the same accounting
policies, judgements and estimates as for the annual
report for 2023 except as described below.
Significant estimates
In the view of Management, the areas where
accounting estimates and assessments are significant
remain the same as per DFDS’ latest annual report.
In the preparation of the interim report, management
undertakes several accounting estimates and
judgements and makes assumptions which provide
the basis for recognition and measurement of the
assets, liabilities, revenues and expenses of the Group
and the Parent Company. These estimates,
judgements and assumptions are based on historical
experience and other factors which management
considers reasonable under the circumstances, but
which by their nature are uncertain and unpredictable.
The assumptions may be incomplete or inaccurate,
and unanticipated events or circumstances may
occur, for which reason the actual results may deviate
from the applied estimates, judgements, and
assumptions.
Impairment considerations due to the current macro
environment
Impairment testing is undertaken at year-end unless
indications of impairment occur during the year.
IFRS 16 practical expedient
From Q1 2024, DFDS no longer applies the practical
expedient not to account for each lease component
within lease contracts separately. DFDS now
separates the non-lease components from the lease
components. In addition, DFDS has elected to no
longer capitalise short-term leases of ferries, but only
those expected to be extended resulting in a total
lease term exceeding 12 months from commencement
date. The change is assessed to give more relevant
information and is better aligned with market practice.
The changes are considered a change in accounting
policy and comparative figures have been restated
retrospectively.
DFDS’s accounting policy has historically been not to
separate the non-lease components from the lease
components (except for terminals), and instead to
account for the contracts in their entirety (the
practical expedient). Furthermore, short term leases
(with a term below one year) for ferries have
historically been recognised on the balance sheet as a
lease liability and a right-of-use asset that is
depreciated instead of expensing the lease cost
directly in the income statement. The restatement is
disclosed in note 8.
Had the change not been implemented, the 31 March
2024 right-of-use assets would have been DKK 275m
higher and lease liabilities DKK 281m higher.
Operating cost in Q1 would have been lower by DKK
39m. Depreciation in Q1 would be DKK 40m higher.
Minor impact would occur in profit after tax, interest
cost, profit on disposal of non-current assets,
exchange rate gain/loss, prepaid cost and other
payables.
IAS 1 amendments to classification of liabilities with
covenants
With the introduction of amendments to IAS 1 in 2024,
a liability will be classified as non-current when DFDS
has the right to defer settlement of the liability for at
least twelve months after the reporting period. The
right must have substance and exist at the end of the
reporting period. The classification of the liability is
unaffected by the likelihood that the DFDS will
exercise that right. Where compliance with covenants
on or before the end of the reporting period is required,
this determines whether such a right exists at the end
of the reporting period.
Previous requirements for classifying a liability as
current or non-current established that a liability is
current if, among others, DFDS did not have an
unconditional right to defer settlement of the liability
for at least twelve months after the reporting period.
Comparative figures have been restated accordingly,
refer to note 8.
Maritime Emission Trading Scheme (ETS)
From January 2024, DFDS is included in the scope of
companies subject to ETS. Initial recognition of
emission certificates will be at cost (Intangible) when
able to exercise control. Cost will be recognised
monthly based on measured emissions at hedged
prices - for certificates covered by hedging - and at
spot prices - for those not covered by hedges.
The corresponding liability is presented under
provisions and remeasured at the end of the period to
reflect latest spot prices-except if covered by hedging
agreements. Revenue from passing on ETS costs to
customers is recognised when the voyage starts.
Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1 2024
External revenue
3,902
3,107
3
7,011
Intragroup revenue
312
23
200
536
Total revenue
4,214
3,130
203
7,547
Operating profit before depreciation and
amortisation (EBITDA)
688
304
- 36
957
Operating profit before amortisation (EBITA)
178
115
- 46
247
Operating profit (EBIT)
169
94
- 63
200
Invested capital, end of period
22,659
6,903
802
30,363
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1 2023 (Restated)
External revenue
3,511
2,827
3
6,341
Intragroup revenue
309
22
174
505
Total revenue
3,820
2,849
177
6,846
Operating profit before depreciation and
amortisation (EBITDA)
704
286
- 18
972
Operating profit before amortisation (EBITA)
295
138
- 30
403
Operating profit (EBIT)
286
120
- 43
363
Invested capital, end of period
21,631
6,287
896
28,813
Q1 2024 interim report
Financials
22/30
Note 3 Revenue
All material revenue is recognised when each
separate obligation in the customer contract is
fulfilled following the "over-time principle". Most
transports carried out by the Ferry Division are
characterised by short delivery time (most sailings are
less than 30 hours while sailings to/from Türkiye are up
to 72 hours). Transports carried out by Logistics
Division can take delivery over a longer period, but the
impact is insignificant.
On board sales is recognised according to the “a point
in time” principle and amount to DKK 359m (Q1 2023:
DKK 275m).
Revenue includes revenue recognised from contracts
with customers in accordance with IFRS 15 and other
revenue (leasing activities). Revenue from leasing
activities amounts to DKK 123m (Q1 2023: DKK 88m).
Q1 2024
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
1,322
-
0
1,322
Mediterranean
1,457
-
0
1,457
Baltic Sea
288
-
0
288
Continent
-
1,205
0
1,205
Nordic
-
1,023
0
1,023
UK/Ireland
835
878
0
1,713
Other
-
-
3
3
Total
3,902
3,107
3
7,011
Product and services
Seafreight and shipping logistics solutions
2,657
8
0
2,665
Transport solutions
160
3,013
0
3,173
Passenger seafare and on board sales
753
0
0
753
Terminal services
164
11
0
174
Charters
118
0
0
118
Agency and other revenue
51
75
3
129
Total
3,902
3,107
3
7,011
Q1 2023
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
1,327
-
0
1,327
Mediterranean
1,140
-
0
1,140
Baltic Sea
319
-
0
319
Continent
-
1,176
0
1,176
Nordic
-
1,014
0
1,014
UK/Ireland
725
636
0
1,361
Other
-
-
3
3
Total
3,511
2,827
3
6,341
Product and services
Seafreight and shipping logistics solutions
2,578
0
0
2,578
Transport solutions
169
2,719
0
2,888
Passenger seafare and on board sales
508
0
0
508
Terminal services
144
2
0
146
Charters
77
0
0
77
Agency and other revenue
35
106
3
144
Total
3,511
2,827
3
6,341
Q1 2024 interim report
Financials
23/30
Note 4 Acquisition of enterprises and
sale of activities
2024, FRS Iberia Group
On 17 September 2023 it was announced that DFDS
Group had entered an agreement to acquire 100% of
FRS Iberia/Maroc, a division of the German short-sea
ferry company FRS GmbH & Co. KG. Closing of the
transaction was completed 10 January 2024. The
acquisition is included in the Ferry Division.
FRS Iberia/Maroc operates three short-sea ferry
routes across the Strait of Gibraltar connecting Spain
and Morocco. The acquisition is aligned with DFDS’
strategy to develop and expand the transport network
focused on moving goods in trailers by ferry, road &
rail as well as moving passengers.
The acquisition expands DFDS’ Mediterranean route
network that today connects Europe with Türkiye and
Tunisia, respectively. The region’s market growth is
expected to continue to exceed growth levels in
northern Europe underpinned by nearshoring of
manufacturing supply chains closer to end markets in
Europe.
DFDS paid DKK 1,519m for the acquired company.
Cash in the acquired company amounted to DKK
421m. Accordingly the cash flow effect was DKK
1,098m.
In connection with the acquisition DFDS has not
identified any intangible assets to be recognised.
Following recognition of acquired identifiable assets
and liabilities at their fair value, the goodwill related to
the acquisition is measured at DKK 762m. Goodwill
relates to the Ferry division. The goodwill represents
primarily the value of purchasing the unique and
integrated operating platform of sea-based transport
of cargo and passengers between Morocco and
Europe as well as the value of the staff and know-how
taken over, and the expected synergies from
combining the acquired activities with the existing
DFDS activities and network. The goodwill is not
deductible for tax purposes.
The preliminary purchase price allocation is shown
opposite.
2023
The purchase price allocation for McBurney Transport
Group is unchanged and is now considered final. The
purchase price allocations for Lundby Åkeri AB, Estron
Group, and D.R. MacLeod are still preliminary but
unchanged compared to 31 December 2023. For
further details of these acquisitions, refer to the annual
report for 2023.
DKK m
Preliminary fair value at
acquisition date
Land and buildings
18
Ships
635
Terminals
15
Equipment etc.
4
Inventories
6
Trade receivables
85
Other receivables
37
Cash at hand and in bank
421
Deferred tax liability
- 38
Interest bearing debt
- 240
Trade payables
- 121
Other current liabilities
- 66
Net assets acquired
756
Goodwill
762
Total purchase price
1,519
Cash and bank balances acquired
- 421
Fair value of the purchase price
1,098
Q1 2024 interim report
Financials
24/30
Note 5 Fair value measurement of
financial instruments
The table discloses fair value and carrying amount of
financial instruments measured at fair value in the
balance sheet. Furthermore, categorisation of the
valuation method according to the fair value hierarchy
is stated.
Transfers between levels of the fair value hierarchy are
considered to have occurred at the date of the event
or change in circumstances that caused the transfer.
There were no transfers between the levels in the fair
value hierarchy in 2024.
Techniques for calculating fair values:
Derivatives
DFDS' usage of derivatives includes interest rate
swaps, bunker swaps, forward exchange contracts
and currency swaps. The fair values of interest rate
swaps have been calculated by discounting the
expected future interest payments. The discount rate
for each interest payment is estimated based on
market interest rates. The fair value of forward
exchange contracts and bunker contracts are
calculated based on actual forward curves.
Q1 2024
Q1 2023
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
183
183
360
360
Securities (Level 3)
2
2
2
2
Financial liabilities
Derivatives (Level 2)
128
128
58
58
Q1 2024 interim report
Financials
25/30
Note 6 Supplementary financial
information on the Parent Company
As a result of DFDS A/S' issuance of corporate bonds
on the Oslo Stock Exchange there is a requirement to
provide certain supplementary financial information
on the Parent Company. The following financial
information has been prepared using the same
accounting policies as for the Annual Report for 2023,
except for those described in note 1 Accounting
policies. Comparative figures have been restated.
DFDS has adopted all new, amended or revised
accounting standards and interpretations (IFRSs)
endorsed by the EU effective for the accounting period
beginning on 1 January 2024. For further description
reference is made to note 1 Accounting policies.
The Parent Company’s revenue increased by DKK
59m, equivalent to 2.3% compared to Q1 2023.
Operating profit before depreciation and amortisation
(EBITDA) decreased by DKK 73m equivalent to 22.6%
compared to Q1 2023.
Profit before tax decreased by DKK 145m compared to
Q1 2023.
The Parent Company’s net interest-bearing debt
increased by DKK 1,876m equivalent to 25.6%
compared to 31 December 2023.
Note 7 Events after Balance sheet
date
No material events have occurred after 31 March 2024
that have consequences for the Q1 2024 interim
report.
Q1
Q1
LTM
Full-year
DKK m
2024
2023
(Restated)
2023-24
2023
(Restated)
Income statement
Revenue
2,595
2,536
11,351
11,292
Operating profit before depreciation and amortisation (EBITDA)
250
323
2,033
2,106
Operating profit before amortisation (EBITA)
- 73
30
890
993
Operating profit (EBIT)
- 90
16
831
938
Financial items, net
- 94
- 56
545
583
Profit before tax
- 184
- 39
1,377
1,521
Profit for the period
- 178
- 40
1,384
1,521
Assets
Non-current intangible assets
478
455
-
476
Non-current tangible assets
7,450
8,046
-
7,395
Investments in subsidiaries
12,990
10,484
-
11,465
Investments in associates, joint ventures and securities
2
2
-
2
Non-current receivables from subsidiaries
26
35
-
28
Other non-current assets
130
156
-
132
Non-current assets
21,075
19,177
-
19,497
Current receivables from subsidiaries
1,163
1,011
-
1,151
Receivables from associates and joint ventures
25
22
-
25
Cash
328
375
-
381
Other current assets
1,637
1,595
-
1,316
Current assets
3,154
3,002
-
2,872
Total assets
24,229
22,179
-
22,370
Equity and liabilities
Equity
11,059
10,061
-
11,481
Non-current liabilities to subsidiaries
50
64
-
41
Other non-current liabilities
7,206
6,095
-
5,226
Non-current liabilities
7,256
6,159
-
5,267
Current liabilities to subsidiaries
2,642
2,193
-
2,479
Other current liabilities
3,272
3,765
-
3,143
Current liabilities
5,914
5,959
-
5,621
Total equity and liabilities
24,229
22,179
-
22,370
Equity ratio, %
45.5
45.4
-
51.3
Net interest-bearing debt
9,204
8,266
-
7,329
Q1 2024 interim report
Financials
26/30
Note 8 Restatement
Income statement (extract)
Q1 2023
Full year 2023
As reported
Adjustment
Restated
As reported
Adjustment
Restated
DKK m
IFRS 16
IFRS 16
Ferry and other ship operation and maintenance
- 1,369
- 25
- 1,395
- 5,485
- 112
- 5,597
Port terminal operations
- 815
- 1
- 815
- 3,264
1
- 3,263
Transport and warehouse solutions
- 1,631
- 8
- 1,638
- 6,743
- 33
- 6,776
Cost of sales, general and administration
- 264
- 2
- 266
- 1,206
0
- 1,206
Operating profit before depreciation and
amortisation (EBITDA)
1,007
- 35
972
5,034
- 144
4,890
Profit/loss on disposal of non-current assets, net
8
1
10
111
2
113
Depreciation, ferries and other ships
- 343
26
- 317
- 1,477
112
- 1,365
Depreciation and impairment losses, other non-
current assets
- 261
8
- 253
- 1,138
30
- 1,108
Operating profit before amortisation (EBITA)
403
0
403
2,504
0
2,504
Operating profit (EBIT)
362
0
363
2,326
0
2,326
Financial income
21
5
26
80
0
80
Financial costs
- 155
2
- 153
- 753
14
-739
Profit before tax
229
7
236
1,652
14
1,667
Tax on profit
- 99
0
- 99
- 148
0
- 148
Profit for the period
130
7
137
1,505
14
1,519
Attributable to:
Equity holders of DFDS A/S
129
7
136
1,501
14
1,516
Non-controlling interests
1
0
1
3
0
3
Total comprehensive income
130
7
137
1,505
14
1,519
Balance sheet (extract)
Q1 2023
Full year 2023
As reported
Adjustment
Restated
As reported
Adjustment
Restated
DKK m
IFRS 16
IAS 1
IFRS 16
IAS 1
Assets
Right-of-use assets
4,906
- 166
-
4,740
5,826
- 226
-
5,600
Non-current tangible
assets
22,044
- 166
-
21,878
21,543
- 226
-
21,317
Non-current assets
29,540
- 166
-
29,374
28,918
- 226
-
28,691
Prepaid costs
414
- 1
-
413
400
0
-
400
Current assets
6,179
- 1
-
6,178
5,955
0
-
5,956
Assets
35,718
- 167
-
35,552
34,873
- 226
-
34,647
Equity and liabilities
-
Retained earnings
11,708
6
-
11,715
13,105
14
-
13,119
Equity attributable to
equity holders of DFDS A/S
12,596
6
-
12,603
13,827
13
-
13,840
Equity
12,711
6
-
12,718
13,918
13
-
13,932
Interest-bearing liabilities
9,914
-
800
10,714
8,116
-
600
8,716
Lease liabilities
4,131
- 84
-
4,047
5,018
- 129
4,889
Non-current liabilities
14,685
- 83
800
15,402
13,756
- 128
600
14,228
Interest-bearing liabilities
2,156
-
- 800
1,356
1,281
-
- 600
681
Lease liabilities
856
- 90
-
766
1,055
- 112
-
942
Current liabilities
8,322
- 90
- 800
7,432
7,199
- 112
- 600
6,487
Liabilities
23,007
- 173
0
22,834
20,955
- 240
0
20,715
Equity and liabilities
35,718
- 167
0
35,552
34,873
- 226
0
34,647
Q1 2024 interim report
Financials
27/30
Statement of cash flows (extract)
Q1 2023
Full year 2023
As reported
Adjustment
Restated
As reported
Adjustment
Restated
DKK m
IFRS 16
IFRS 16
Operating profit before depreciation and
amortisation (EBITDA)
1,007
- 35
972
5,034
- 144
4,890
Change in working capital
177
1
178
- 338
0
- 338
Interest etc, paid
- 134
2
- 133
- 734
9
- 725
Cash flows from operating activities
1,040
- 32
1,007
3,811
- 135
3,675
Free cash flows
- 484
- 32
- 517
2,662
- 135
2,526
Payment of lease liabilities
- 210
32
- 177
- 935
135
- 799
Cash flows from financing activities
340
32
373
- 3,115
135
- 2,980
Net cash flows
- 144
0
- 144
- 454
0
- 454
Key figures (extract)
Net interest-bearing debt
15,845
- 174
15,671
14,689
- 241
14,449
Invested capital, end of period
28,980
- 167
28,813
28,996
- 226
28,770
ROIC before acquisition intangibles (ROIC BAI), %
12.0
0.3
12.4
10.4
0.1
10.5
Return on invested capital (ROIC), %
9.0
0.2
9.2
7.6
0.1
7.6
Financial leverage, times
2.9
0.1
3.0
2.9
0.0
2.9
Earnings per share (EPS), DKK
2.28
0.15
2.43
26.64
0.25
26.89
Q1 2024 interim report
Financials
28/30
Operating profit before depreciation
(EBITDA)
Profit before interest, tax, depreciation,
amortisation, and impairment on non-
current assets
Operating profit before amortisation
(EBITA)
Profit before interest, tax, and amortisation
Operating profit (EBIT)
Profit before interest and tax
Operating margin, %
Operating profit (EBIT)
x 100
Revenue
Net operating profit after taxes (NOPAT)
Operating profit (EBIT) minus payable tax
for the period adjusted for the tax effect of
net finance cost
Invested capital
Non-current intangible and tangible assets
plus net working capital (non-interest
bearing current assets minus non-interest
bearing current liabilities) minus pension
and jubilee liabilities and other provisions
Net Interest-bearing debt (NIBD)
Interest-bearing liabilities (excluding
provision for pensions) minus interest-
bearing assets minus cash and securities
LTM
Last twelve months
Acquisition intangibles
Intangible assets recognised in connection
with acquiring enterprises and activities
(Goodwill and Other non-current intangible
assets)
Return on invested capital (ROIC), %
Net operating profit after
taxes (NOPAT LTM)
x 100
Average invested
capital LTM
ROIC before acquisition intangibles
(ROIC BAI), %
Net operating profit after
taxes (NOPAT LTM)
excluding amortisation
on acquisition intangible
assets
x 100
Average invested capital
excluding acquisition
intangible assets LTM
Free cash flow
Cash flow from operating activities minus
cash flow from investing activities
Adjusted free cash flow (FCFE)
Free cash flow excluding
acquisitions/divestments minus payment of
lease liabilities and currency contracts
related to leases
Return on equity, %
Profit for the period
excluding non-controlling
interests
x 100
Average equity excluding
non-controlling interests
Equity ratio, %
Equity at end of period
x 100
Total assets
Financial leverage, times
Net Interest-bearing debt
(NIBD)
x 100
EBITDA LTM incl. pro
forma EBITDA for
acquired companies
Earnings per share (EPS)
Profit for the period
excluding non-controlling
interests
x 100
Weighted average
number of ordinary
shares in circulation
Dividend per share
Dividend for the year
x 100
Number of shares at the
end of the period
Number of ships
Owned and chartered ships, including slot
charter and vessel sharing agreements
Passenger
Comprise activities related to persons
travelling with or without car and who is
carried on a ro-pax or passenger cruise
ferry across the DFDS route network.
Definitions
Q1 2024 interim report
Financials
29/30
Total distance sailed
Total distance sailed for vessels in
commercial operation
CO2 emissions per GT nautical mile
(Own fleet)
Emissions measured as gCO2 per gross
tonnage nautical mile for vessels in
commercial operation (Own fleet)
CO2 emissions per GT nautical mile
(Route network)
Emissions measured as gCO2 per gross
tonnage nautical mile for vessels in
commercial operation (Route network)
Total fuel consumption (Route network)
Total consumption of heavy fuel oil (HFO)
and marine gas oil (MGO) for vessels in
commercial operation (Route network)
Spills (>1 barrel)
Incidents of oil spills larger than one barrel
into the sea from vessels in operation
Total workforce
Percentage of women in total workforce
(end of period)
Non-office based
Percentage of women of total number of
non-office based employees (end of period)
Office based
Percentage of women of total number of
office based employees (end of period)
Senior management
Percentage of women of total number of
senior management positions defined as
EVPs and VPs (end of period)
Managers
Percentage of women of total number of
management positions, excluding senior
management, defined as positions with
responsibility for at least one other
employee (end of period)
Lost time injury frequency (LTIF), sea
Number of registered work-related
accidents disabling a seafarer to work for
more than 24 hours per one million
exposure hours
Lost time injury frequency (LTIF), land
Number of registered work-related
accidents disabling a land-based
employee work for more than 24 hours per
one million exposure hours
Colleagues
Number of fatalities among employees
caused by work-related accidents
Contractors
Number of fatalities among third-party
contractors caused by work-related
accidents while operating for DFDS
Representation of women on Board of
Directors (AGM elected members)
Percentage of women of total number of
members of the Board of Directors,
excluding staff appointed members,
elected at the Annual General Meeting
Board nationality – non-Danish
(AGM elected members)
Percentage of non-Danish members of
total number of members of the Board of
Directors elected at the Annual General
Meeting
Independent directors
(AGM elected members)
Percentage of independent directors of
total number of members of the Board of
Directors elected at the Annual General
Meeting
Attendance at Board meetings
(All Board members)
Percentage of total number of Board
meetings attended (Not gender specific)
Whistle-blower reporting
Number of cases of whistle-blower reports
ESG Definitions
Q1 2024 interim report
Financials
30/30
8 May 2024
Company announcement no.: 35/2024
Contact
Torben Carlsen, CEO: +45 33 42 32 01
Karina Deacon, CFO: +45 33 42 33 42
Søren Brøndholt Nielsen, IR: +45 33 42 33 59
Dennis Kjærsgaard Sørensen, Media: +45 42 30 38 47
DFDS was founded in 1866 and is headquartered and listed in
Disclaimer
The statements about the future in this announcement contain
risks and uncertainties and actual developments may therefore
diverge significantly from statements about the future.
Addresses of DFDS’ subsidiaries, locations and offices are available from www.dfds.com