Danish shipping and logistics group DFDS reported a 10 per cent increase in second-quarter revenue to DKK8.6 billion ($1.3 billion), driven by higher earnings across its ferry and logistics divisions.
Operating profit rose by DKK291 million to DKK454 million, prompting the group to raise its full-year financial guidance. Adjusted free cash flow reached DKK728 million during the quarter, while financial leverage declined to 3.4 times net debt to EBITDA at the end of June.
DFDS raised its full-year revenue growth forecast to between three and five per cent, compared with its previous expectation of around zero per cent.
The lower end of its EBIT guidance was increased to DKK1.2 billion, resulting in a range of DKK1.2 billion to DKK1.4 billion versus the previous DKK1 billion to DKK1.4 billion outlook.
Full-year adjusted free cash flow is now expected to reach around DKK500 million, up from the previous forecast of more than DKK250 million.
Chief Executive Officer Michael Hansen said the second-quarter performance was on track but acknowledged that financial results remained below the company's desired level.
“We have launched a strategy review to clarify our long-term vision, positioning, and priorities,” Hansen said. DFDS expects to complete the review within six months, with the process intended to improve financial performance and inform future network investments.
Earnings in the ferry and logistics divisions improved following progress on six turnaround initiatives introduced earlier this year, the company noted.