Scan Global Logistics remain upbeat in competitive market conditions
Danish transport and logistics company Scan Global Logistics has navigated the competitive market conditions in 2023 well and reported solid financial results. Following the extraordinary conditions of 2022, and despite macroeconomic and geopolitical challenges and disruptions continuing throughout all of 2023, the freight market showed normalisation and gradually returned towards pre-COVID levels and inventory levels became aligned for re-stocking.
The company reported a revenue figure of €2.02 billion, down from the €3.3 billion a year prior. The decrease was primarily due to a challenging macro environment coupled with lower freight rates and lower air volumes, the company said.
Gross profit amounted to €469 million in 2023, on par with last year. The result for the year amounted to a loss of €33 million primarily driven by the operating performance and net financial items. Excluding costs related to the acquisition of SGL Group by CVC Funds, the result for the year would amount to a profit of €21m compared to €63m in 2022.
In 2023 the company acquired ETS in Germany, Sand in Denmark, Belglobe in Switzerland, FLS in Portugal and 3PL and Global Cargo in the United States.
Read more: Scan Global Logistics acquires military logistics expert FLS
Global CEO Allan Melgaard considers the result satisfactory, with the company continuing to show agility and entrepreneurship across all segments, also in 2023.
“Related to the transaction with our new majority shareholder CVC Capital Partner there have been significant extraordinary transaction costs, resulting in the final result for the year ending in a minus of €33 million. It is exactly as planned. The important thing is that we deliver exactly the EBIDTA that is in line with the expectations we have announced. Our solid performance demonstrates the effectiveness of our resilient business model, offering both standard and complex logistics solutions. Hard work, strong customer focus, and close partnership-based supplier management made it possible to maintain a gross profit on par with 2022,” Melgaard said.
2023 marked an important year for Scan Global Logistics, with private equity firm CVC as a new majority shareholder.
“CVC’s entry as majority shareholder supports our ambitious growth strategy. We see CVC as the perfect partner, both professionally and culturally. Together, we will continue to create value for all stakeholders,” says Melgaard.
Looking into 2024 and beyond, Scan Global Logistics’ CEO says volatility is still the only constant in the logistics market. “However, we are well-positioned to take advantage of the opportunities that present themselves. We are dedicated to supporting our customers’ growth and look forward to another year of opportunities. We will continue our journey and create even greater value for our customers, employees and stakeholders in 2024 and the years to come,” says Melgaard.
