The 2014 revenues of Northern Europe’s shipping and logistics company DFDS increased by 6% to DKK 13bn.
The company’s earnings before depreciation increased by 18% to DKK 1.4bn, as shown in the company’s review of annual results for 2014.
DFDS recorded a rise in return on the invested capital of 8%. However, the company aspires to achieve a return of 10% in the short term.
“The main return gaps to overcome to reach a 10% return are the impact of structural overcapacity on the English Channel and a low return on the freight activities between the Continent and UK in the North Sea,” the company said.
The company’s profit before tax and special items was DKK 571m, an increase of 56% compared to 2013. The increase was mainly driven by higher earnings for the freight shipping activities in the North Sea region and a reduction of the loss for the routes on the English Channel, the company said in its annual results.
In addition, the earnings of the Logistics Division was boosted by the acquisition of three companies (one in 2013 and two in 2014).
The company’s revenue for the year was DKK 12.8bn, an increase of 6% compared to 2013, which was attributed to the effect of the three acquisitions in the Logistics Division and higher revenues in the North Sea and Channel business units.
“We have financial strength to grow our market coverage through acquisitions as well as investing in new technology and our employees. And not least, financial strength and capital discipline to provide our shareholders with a competitive return on their investment,” said Niels Smedegaard, President & CEO of DFDS.