Deutsche Post DHL Group Reports Preliminary Quarterly Results, To Raise Short To Medium Term Outlook On The Basis Of Still Strong Earnings
BONN, Germany – (COMMERCIAL THREAD) – Deutsche Post DHL Group (symbol: DPW), a global leader in logistics, today released its preliminary results for the third quarter of 2021. Group EBIT reached approximately 1.765 billion euros in the third quarter of 2021 (Q3 2020: € 1.377 billion), bringing EBIT for the first nine months of 2021 to around € 5.760 billion. This includes a one-time effect of -179 million euros for the second Covid-19 bonus (Q3 2020: -163 million euros), which will be paid in the fourth quarter. Against a backdrop of excellent business development, the Group will revise upward its EBIT and free cash flow outlook for fiscal year 2021. In addition, the medium-term guidance for fiscal year 2023 will be revised upwards on November 4, 2021.
“In the first nine months of the current year, we have already surpassed the result of the previous year. World trade has accelerated considerably compared to the previous year. At the same time, e-commerce shipping volumes remained high. Therefore, we are optimistic for the coming peak season, ”said Frank Appel, CEO of Deutsche Post DHL Group. “We are now intensely preparing for potentially record shipping volumes in the coming weeks and have deliberately increased our capacity in the third quarter, so that we can provide our customers with continued high quality service. ”
DHL divisions achieved significant profit jump
The positive development of the group’s activities observed in the first half of the year continued well until the third quarter of 2021. All DHL divisions significantly exceeded the results of the previous year. Volume trends over the last quarter confirm basic assumptions with a continued and well-supported B2B recovery and B2C volumes remaining at the high levels of the previous year across all major networks. At the same time, the situation of limited capacity in the sea and air freight markets continued.
Express: EBIT for the Express division reached around 970 million euros in the third quarter of 2021, compared to 753 million euros in the previous year quarter.
Global Shipping, Freight: Global Forwarding, Freight’s EBIT was approximately € 370 million in the third quarter of 2021, also significantly higher than the previous year’s result of € 155 million.
Supply Chain: Supply chain EBIT was around € 140 million in the third quarter of 2021, significantly higher than last year’s third quarter result of € 112 million.
E-commerce solutions: eCommerce Solutions recorded EBIT of around 90 million euros in the third quarter of 2021, significantly higher than the third quarter result of last year of 76 million euros.
Post & Parcels Germany: Post & Parcel Germany’s EBIT in the third quarter of 2021 was approximately 300 million euros (Q3 2020: 320 million euros).
The continued positive development of the business is supported by an equally strong continued development of cash flow; Free cash flow in the third quarter of 2021 amounted to more than 1.0 billion euros (Q3 2020: 1.264 billion euros). For the first nine months of 2021, free cash flow amounts to more than 3.1 billion euros and greatly exceeds the result of the previous year (9M 2020: 1.460 billion euros).
The outlook for results and FCF will be revised upwards depending on the dynamism of the activity
In view of the continued positive earnings momentum also in the third quarter of 2021, management will increase its guidance for Group EBIT and FCF for fiscal year 2021, thanks to the strong development of the DHL divisions. In addition, the medium-term forecast for fiscal year 2023 will be revised upwards.
Full disclosure for Q3 2021 will be released as scheduled on November 4, 2021.
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Deutsche Post DHL Group is the world leader in logistics. The Group connects people and markets and is a catalyst for global trade. It aspires to be the first choice of customers, employees and investors around the world. The Group contributes to the world through responsible business practices, corporate citizenship and environmental activities. By 2050, the Deutsche Post DHL group aims to achieve zero-emission logistics.
Deutsche Post DHL Group is home to two strong brands: Deutsche Post is Europe’s leading postal service. DHL offers a full range of international express, freight transportation and supply chain management services, as well as logistics solutions for e-commerce. Deutsche Post DHL Group employs around 570,000 people in more than 220 countries and territories around the world. The Group achieved sales of more than 66 billion euros in 2020.
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