Preliminary Q4 2024 DFDS AS Earnings Call Transcript
Key Points
- DFDS AS (DFDDF) reported a 9% revenue growth for 2024, aligning with their outlook range of 8% to 10%.
- The company is focusing on unlocking the value of its expanded network, with strong organic growth expected to continue.
- DFDS AS (DFDDF) is implementing a disciplined approach to capital expenditure, prioritizing cash flow generation.
- The company is actively working on turning around the newly acquired Ekol business, aiming for a break-even by the end of 2025.
- DFDS AS (DFDDF) remains committed to its Moving Together Towards 2030 strategy, focusing on profit protection and growth, standardization, digitization, and sustainability.
- The 2024 EBIT of DKK1.5 billion is at the low end of the outlook range, indicating potential challenges in meeting higher expectations.
- The preliminary 2025 outlook projects a decrease in EBIT to around DKK1 billion, impacted by a competitive environment in the Mediterranean and the Ekol acquisition.
- The company's mid-term and long-term financial ambitions have been canceled due to developments in 2024 and 2025.
- DFDS AS (DFDDF) faces a challenging competitive environment in Turkey, with new entrants affecting profitability.
- The company's financial leverage is expected to increase to around 4 times EBITDA, raising concerns about potential impacts on credit ratings and financial flexibility.
Thank you very much, and welcome to everybody for joining this call where we will talk about our preliminary 2024 results, our preliminary 2025 outlook, and the cancellation of our mid-term, long-term financial ambitions that previously were communicated. As usual, I'm joined by Karen Boesen, our CFO; and Søren Brøndholt, our Head of Investor Relations.
If we turn to page 3, revenues for DFDS are 9% for 2024 to DKK29.8 billion, which is in line with the outlook range of 8% to 10% growth for the year. Our 2024 EBIT is DKK1.5 billion, which is in the low end of the latest outlook range of DKK1.5 billion to DKK1.7 billion that we communicated after Q3. The adjusted free cash flow for the year ended at DKK1 billion versus the outlook of DKK1.2 billion.
Turning to page 4. The preliminary 2025 outlook is an expected EBIT of around DKK1 billion. This includes a substantial negative full-year earnings impact from Mediterranean's changed competitive environment. It also includes the impact of the newly
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