DFDS recently posted its interim report for the first quarter of 2025, wherein it reported an eight per cent increase in revenue to DKK7.5 billion (US$1.13 billion) from DKK7.011 billion (US$1.06 billion) in the same period last year.
However, net profit dropped from DKK317 million (US$47.9 million) in Q1 2024 to a loss of DKK117 million (US$17.7 million) in Q1 2025. Adjusted free cash flow meanwhile increased to DKK573 million (US$86.6 million) from DKK 246 million (US$37.2 million).
“In March, the earnings trend started to improve following the execution of multiple turnaround actions during the quarter,” said Torben Carlsen, CEO of DFDS.
"2025 is a transitional year, as noted in our latest annual report, where we lay the groundwork for improving financial performance following the events of 2024. Firstly, most of our business units are as expected on track to uphold performance or improve in 2025."
Carlsen added that the company is making progress on resolving three specific focus areas: adapting Mediterranean ferry operations to the changed competitive environment; turning logistics’ Türkey and Europe South around to breakeven by year-end 2025; and delivering on the logistics turnaround projects initiated in 2024.
"As expected, the three focus areas’ substantial negative earnings impact in Q4 2024 continued into Q1 2025."
In March, the earnings trend started to improve following the execution of multiple turnaround actions during the quarter. The actions taken include price increases, capacity adjustments, headcount reductions, closure of unprofitable activities, and office closures/mergers.
"Further actions are being taken and we expect the improving earnings trend to become more visible in our Q2 results and in the remainder of the year," said Carlsen.
Carlsen said that the expansion of DFDS' network to regions positioned to benefit from nearshoring continue to be validated by recent geopolitical events. In addition, Europe’s determination to become more self-reliant is likely to grow trade in the coming years with manufacturing hubs such as Turkey and Morocco."
"Shorter-term, we are not assuming any market tailwinds as the shift in US policies and the ensuing uncertainties may further dampen the already muted European economic growth outlook for 2025.
"Germany’s decision to step up defence and infrastructure spending is set to fuel European growth, but material impacts on activity levels are not expected before 2026. Meanwhile, our focus is on adapting to a low-growth market environment."
The earnings outlook for 2025 is unchanged in that the company still projects profit of around DKK1 billion (US$150 million).