Q3 2024 DFDS AS Earnings Call Transcript
Key Points
- DFDS AS (DFDDF) achieved organic revenue growth, particularly driven by logistics, aligning with their strategic focus.
- The first high season for the acquisition in the Strait of Gibraltar showed great performance, meeting expectations.
- The company reported a 4% increase in organic revenues, with logistics contributing 7% and ferry operations 2%.
- DFDS AS (DFDDF) continues to reduce emission intensity from ferries, with a 1-2% reduction across the network.
- The company is expanding investments in shore power in terminals and ships, aligning with EU regulatory frameworks.
- DFDS AS (DFDDF) lowered its 2024 outlook for EBIT and adjusted free cash flow due to financial performance and the termination of the ECO acquisition.
- The company's ROIC is at 6% over the last 12 months, and cash flow is reduced due to tighter investments.
- Q3 results were below expectations, with a slowdown in the European economy impacting performance.
- The automotive sector's challenges and the ongoing war in Ukraine are negatively affecting growth in the Baltics and Eastern Europe.
- The company faces intensified competition in the Mediterranean, leading to reduced prices and impacting the Italy-Istanbul line.
Good morning and welcome to the DFDS AS Q3 2024 conference call.
I am joined here by Karen Dyrskjot Boesen, our CFO and so Boesen, our head of investor relations.
This morning, we released our Q3 numbers and last Friday, November 1, we lowered our 2024 outlook for EBIT and the adjusted free cash flow.
The outlook change was partly driven by our financial performance and partly by the termination of the ECO acquisition which we also announced last Friday.
The termination of the agreement is of course unfortunate, but we, believe the right decision under the circumstances.
As many of you know, eco logistics is a large and valued customer in our Mediterranean route network, given our customer relationship and an ongoing dialogue about the future post determination. I cannot at this stage provide additional information about the situation, but we have a very strong Mediterranean ferry product, and we continue to see Turkey as a compelling growth market in the coming weeks. We'll continue the dialogue with the eco logistics about the future relationship, both as
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
