Q4 2024 DFDS A/S Earnings Call Transcript
Key Points
- DFDS AS (DFDDF) achieved organic growth in 2024, with positive customer feedback on their network capabilities.
- The acquisition of the Strait of Gibraltar delivered on its business plan, contributing positively to the company's growth.
- DFDS AS (DFDDF) won a 20-year concession agreement with Jersey Islands, expected to be positive from day one.
- The company is on track with its green transition goals, including a 1.7% reduction in ferry emission intensity.
- The North Sea and Channel regions are expected to maintain or improve performance in 2025, with stable commercial performance anticipated.
- 2024 was financially challenging, with results falling short of expectations due to macro and market headwinds.
- The Mediterranean market faced competitive pressures, impacting EBIT negatively, with overcapacity issues from new competitors.
- The acquired Turkish transport company, Ekol, contributed to significant losses, impacting the overall financial performance.
- DFDS AS (DFDDF) experienced increased financing costs, partly due to higher interest rates and leasing payments.
- The company's leverage ratio increased to 3.9 times, above the long-term target range of 2 to 3 times, indicating financial strain.
Thank you, and good morning, and welcome to DFDS' Q4 and full year 2024 conference call. I'm, as usual, joined by Karen Boesen, our CFO; and Søren Brøndholt, our Head of Investor Relations.
This morning, we released our 2024 numbers. As you know, we already released the headline EBIT numbers for '24, and '25 outlook, and they are both unchanged since January. Going into 2025, our story is quite simply that our strategy is to unlock value from our network. And to do that, we have three specific focus areas that we aim to resolve in 2025.
In 2024, we succeeded with organic growth, and we are getting good customer feedback on the capabilities of our network. We have a strong foundation to further unlock value. The three areas that we focus on in '25 are not new. It's the competitive situation for the Mediterranean ferry network, it's the turnaround of the acquired Turkish transport company, and it's the Logistics Boost projects that we initiated in 2024. I'll talk more about these three areas
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