jwesth @jwesth: "'𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙖𝙨 𝙪𝙨𝙪𝙖𝙡' 𝙛𝙧𝙤𝙢 𝘿𝙎𝙑..."

United Kingdom

'𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙖𝙨 𝙪𝙨𝙪𝙖𝙡' 𝙛𝙧𝙤𝙢 𝘿𝙎𝙑 - 𝙌𝟭 𝟮𝟬𝟮𝟰 𝙚𝙖𝙧𝙣𝙞𝙣𝙜𝙨 📉 The danish transport giant $DSV.CO (DSV A/S) shares are down 5% in the wake of its first-quarter results, suggesting that some investors are not satisfied with today's performance. This is despite the transportation giant from Hedehusene reporting revenue of 38.3bn kr. - slightly better than analysts' expectations of 37.4bn kr. However, they disappointed slightly with an operating profit of 3.6 kr., where analysts would have liked to see 3.8 kr. 🚚 But it's only the details that don't add up. Management also maintains their previously announced expectations of an operating profit in 2024 of 15-17bn kr. I see today's results as 'business as usual' and the company's situation has not changed. 🚢 In terms of volumes transported, DSV outperforms, and they report strong growth in the Sea Freight division of 8%. However, they earn slightly less on volumes transported, with freight prices under pressure. But with signs of stabilisation from here. On a positive note, they are also managing to increase their market share across all their markets, which has been a focus area for management. In such a competitive market, gaining market share comes at a cost to margins. 📦 We were not given any further information about the ongoing sale of the German freight forwarding giant DB Schenker. A sale that could potentially happen as early as the second half of the year. But the competition for DB Schenker is fierce, with several private equity funds and other freight forwarder competitors such as UPS and Maersk as potential buyers. DSV has a long track record of acquisitions and integration and is a strong candidate for the acquisition. 🐋 A successful acquisition and integration of DB Schenker would put DSV in a league of its own. It would make DSV by far the largest logistics provider, surpassing both Kuehne+Nagel and DHL in size. But whether a potential acquisition is positive for the share price will depend on the price DSV ends up paying and the subsequent integration process. 💡DSV's well-oiled M&A machine and long experience with successful acquisitions provides a good foundation for a successful integration and for paying 'the right price'. But such an acquisition is not without risks. The integration may take longer, and the expected synergies may prove harder to realise, especially given DB Schenker's huge size. $DHL.DE (Deutsche Post AG) $KNIN.ZU (Kuehne & Nagel International AG) $UPS (United Parcel Service Inc) $MAERSKB.CO (A P Moller Maersk) $ZIM (ZIM Shipping Services Ltd) $HLAG.DE (Hapag-Lloyd)

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