Home Latest Feeds Technology News DACHSER reported the expansion of its global network and declining annual revenue

DACHSER reported the expansion of its global network and declining annual revenue

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DACHSER reported the expansion of its global network and declining annual revenue

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Given the cautious economic forecasts for 2024, DACHSER continues to expect low volumes and only mild revenue growth.

German logistics company DACHSER expanded its network in 2023 through investments, a number of acquisitions and joint ventures, amid declining annual revenue due to weak global logistics demand.

In the announcement, it was highlighted that the financial year was also characterized by weak global logistics demand for DACHSER due to significant overcapacity and sharply falling prices in air and sea freight.

The company’s revenues therefore decreased by 12.5 percent compared to the previous year to around 7.1 billion euros. The volume of shipments decreased by 4.6 percent to approximately 77.4 million shipments, and the weight of goods decreased by 6.5 percent to approximately 40 million tons.

DACHSER significantly expanded its global network in 2023: strategic acquisitions were made and joint ventures were established in the Netherlands (Müller Fresh Food Logistics), Australia and New Zealand (ACA International), Japan (50 percent DACHSER Japan joint venture), Italy (80 percent DACHSER & Fercam Italia joint venture), in South Africa (100 percent takeover of the shares of DACHSER South Africa) and in Sweden (Frigoscandia). The 2023 revenue figures only include the acquisitions in the Netherlands and Oceania for the first half of the year, the company said in a statement.

Given the cautious economic forecasts for 2024, DACHSER continues to expect low volumes and only mild revenue growth.

DACHSER spent more than 244 million euros on investments in 2023 and plans to increase this amount to more than 500 million euros by 2024.

The announcement detailed the results of the business divisions and added: the Road Logistics business division, in which DACHSER combines the transport and storage of industrial and consumer goods (European Logistics) as well as food (Food Logistics), in 2023 by 1.8 percent, 5.8 billion increased its income to EUR.

Compared to the record year of 2022, the European Logistics business generated almost unchanged sales revenue of 4.4 billion euros.

The Food Logistics business also closed a successful financial year in 2023, with revenue increasing by 9.7 percent to 1.4 billion euros.

The Air & Sea Logistics business was negatively affected by weak demand and the consequent underutilization of air and sea freight capacities. A sharp drop in shipping fees led to a 46.3 percent drop in revenue to 1.3 billion euros compared to 2022.

The Contract Logistics business, realized as a combination of transport, warehousing and customer-specific value-added services, was also greatly expanded in 2023.

According to the announcement, Burkhard Eling, the CEO of DACHSER, announced that in the future, even more emphasis will be placed on the integration of the Road Logistics and Air & Sea Logistics businesses, as markets outside of Europe will provide significant growth momentum in the coming years.

DACHSER has increased its workforce by more than 1,100 to around 34,000 in 2023, thanks to the expansion of its sales and IT teams and the acquisition of Müller Fresh Food Logistics and ACA International.

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