“Our initial response to Covid-19 has been successful. We now take further steps to restore long term growth and efficiency. At the same time, we continue to monitor new opportunities that may arise”, says Torben Carlsen, CEO of DFDS.

The new initiatives include:

  • Industry sales of large freight customer solutions, involving both ferry and logistics operations, will be combined in one unit to drive sales across the DFDS organisation. The unit will be part of the Logistics Division. In addition to creating a stronger commercial focus, overlapping functions will be streamlined
  • Consequently, the Ferry Division will focus on delivering reliable and cost-efficient services to freight forwarders and hauliers
    Freight and logistics operations will be adapted to new market conditions, including optimisation of port terminal and haulage operations
  • Passenger concepts have been aligned to changes in travel market dynamics with a higher share of passengers that primarily travel for transport purposes, including holiday travel. Onboard concepts and offerings have been simplified
  • A range of improvement and efficiency projects will simplify and focus business support functions. This includes a reshaped and integrated IT and digital organisation as well as a downsizing of various functions.

These initiatives are expected to generate annual cost savings of up to DKK 250m. In 2020, a positive financial impact of DKK 50-75m is expected.

A one-off redundancy cost of around DKK 100m is expected in 2020 and will be recorded under Special items.  As per 29 June , DFDS will exit the Danish furloughing scheme.