Fears around Brexit have led DFDS to cut its full year outlook, sending shares in the Danish ferry owner spinning downwards today.
Its stock slumped by more than one tenth in early trading after it warned of "exceptional uncertainty" around the UK’s pending exit from the European Union.
The shipowner sliced its core operating profit outlook for this year as its revenue growth forecast were scaled back.
Torben Carlsen, chief executive of DFDS, said: "Brexit is an exceptional situation currently lowering volumes in our ferry and logistics network.
“In spite of this headwind, we are still on track to continue our growth this year.
"The work to deliver on our new strategic and financial ambitions has started and progress is well under way.”
The UK is a major market for DFDS. After a strong first quarter thanks to pre-Brexit stockpiling, it saw goods volumes into the country drop during the second quarter.
Shares in DFDS slumped around 12% in early trading in Copenhagen and were down 7.95% at at DDK 220.40 each at the time of writing.
“Rising uncertainty about Brexit is contributing to a considerable slowdown in UK trade as manufacturers and importers/exporters are adopting a wait-and-see approach to gain more visibility,” DFDS said.
“In line with the stockpiling that took place in Q1 ahead of the previous Brexit date, a new round of stockpiling may occur in September and October ahead of the current Brexit date end October.”
The shipowner is now forecasting Ebitda in the range of DKK 3.5bn to DKK 3.8bn this year. This is below the DDK 3.8bn to DDK 4bn ($600m) range previously projected.
It comes with revenue growth forecasts cut to 6% to 8% from 10% to 12% it had penciled in before today.
Despite the concerns, DFDS said it was well prepared for Brexit, with regards to staff, systems and processes to achieve a smooth transition in case of a no-deal departure from the economic block.
“Many customers are, however, not prepared for handling the transition due to insufficient awareness of required customs documents and systems and this poses risk for the transition,” it said.
“DFDS continues to create awareness among customers of requirements in cooperation with authorities in UK and EU.”
The shipowner booked a profit of DDK 486m in the second quarter, down from DDK 494m at the same stage a year ago.
