Deutsche Post DHL Group, a German package delivery and supply chain management major, reported Tuesday higher profit and revenues for its first quarter. Further, the company also maintained its outlook for fiscal 2022 through 2024. Shares of Deutsche Post were gaining around 1 percent in the morning trading in Germany.
For 2022, the company continues to expect EBIT of 8.0 billion euros, plus or minus 5 percent. In fiscal 2021, EBIT was 7.97 billion euros.
Further, for 2024, the company continues to forecast an increase in EBIT to around 8.5 billion euros. The short- and medium-term outlook for the development of free cash flow and gross capital expenditures was also confirmed.
Excluding acquisitions, the company expects free cash flow of 3.6 billion euros, plus or minus percent, in the current year, with a cumulative free cash flow forecast of around 11 billion euros for the period 2022 to 2024.
The outlook for capex in 2022 remains at around 4.2 billion euros and for the period 2022 to 2024 at around 12 billion euros.
For the first quarter, consolidated net profit rose 13.5 percent to 1.35 billion euros or 1.08 euros per share from 1.19 billion euros or 0.94 euros per share in the same quarter last year.
Operating profit or EBIT grew 13 percent to 2.16 billion euros from 1.91 billion euros in the previous year. Meanwhile, EBIT margin was 9.6 percent, down from previous year's 10.1 percent.
Revenue improved 19.8 percent to 22.59 billion euros from the prior year's 18.86 billion euros, with ongoing strong demand for transport services.
International revenues climbed 28 percent from last year to 17.12 billion euros.
The company said the global B2B business was the key growth driver. Global Forwarding, Freight and Supply Chain in particular, as well as Express, benefited from a solid development in global trade and stronger B2B business.
The Express division's revenue increased 15.9 percent to 6.4 billion euros, largely driven by heavier weight shipments and higher fuel surcharges.
Global Forwarding, Freight's revenues jumped 54.9 percent to 7.4 billion euros, mainly due to further intensifying price and margin dynamics in the international transport markets and slightly higher volumes in air and ocean freight.
The Supply Chain division's revenue increased 17.7 percent, while eCommerce Solutions revenue was 0.6 percent below the previous year. Pricing measures compensated the expected decline in shipment volumes.
At Post & Parcel Germany, revenue was moderately below the exceptionally high prior-year level. Shipment volumes normalized as anticipated.
In Germany, Deutsche Post shares were trading at 40.59 euros, up 0.63 percent.
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