Deutsche Post DHL Group on strong opening quarter

 Deutsche Post DHL Group on strong opening quarter

German logistics giant Deutsche Post DHL Group stayed on track for growth in the second quarter 2021. Revenue increased significantly by 22.2 percent to EUR 19.5 billion (Q2 2020: EUR 15.9 billion). 

With the rising global business activities and steadily growing e-commerce, all five divisions benefited from a very strong demand for logistics services. Shipment volumes reached a new record level and were transported more efficiently than ever before by Deutsche Post DHL Group. 

Operating profit (EBIT) increased to EUR 2.1 billion (Q2 2020: EUR 912 million). The EBIT margin almost doubled to 10.7 percent (Q2 2020: 5.7 percent). Free cash flow was EUR 919 million in the second quarter of 2021. 

“After the global economy had experienced an unprecedented downturn last year, all of our divisions now make a pivotal contribution to accelerate the recovery of global trade. Our entire team performed brilliantly in an environment that remained challenging, enabling us to achieve an outstanding quarterly result”, said Frank Appel, CEO of Deutsche Post DHL Group. 

The dynamic performance in national and international business from April to June was driven by a persisting structural e-commerce trend. At the same time, there was a revitalization in business activities that are more dependent on global trade, such as contract logistics and the international freight forwarding business. 

Profitability was additionally heightened by the continuing digital transformation of business processes and the introduction of new digital customer solutions. Overall, Deutsche Post DHL Group generated net profit after non-controlling interests of EUR 1.3 billion in the second quarter of 2021 (Q2 2020: EUR 525 million). Basic earnings per share thus doubled to EUR 1.05, compared with EUR 0.43 a year ago. 

Elevated guidance confirmed: EBIT to rise to more than EUR 7.4 billion in 2023 

The Group confirms its short- and mid-term earnings guidance, which was raised in July. For the current financial year 2021 Deutsche Post DHL Group continues to forecast record earnings of more than EUR 7.0 billion. The midterm earnings outlook for 2023 remains unchanged at more than EUR 7.4 billion, reflecting the expectation of unchanged high shipment volumes and further improved efficiency.