Deutsche Post DHL Q2 Profit Climbs, Backs FY22 View; Stock Up

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Shares of Deutsche Post DHL Group were gaining around 6 percent in the morning trading in Germany after the package delivery and logistic major reported Friday higher profit and revenues in its second quarter with strong demand.

Going ahead, the company confirmed its 2022 EBIT guidance of 8.0 billion euros, plus or minus 5 percent, even in consideration of a possible global economic downturn in the second half of 2022. The company also maintained its mid-term EBIT guidance of around 8.5 billion euros for 2024.

CFO Melanie Kreis said, "We have significantly improved our financial strength through a strong operating performance in recent quarters. Greater financial flexibility prepares us for any scenario. Thanks to our strong balance sheet, we can proceed as planned with our targeted investments of around EUR 12 billion by 2024. In doing so, we are creating the conditions for long-term growth beyond the significantly improved earnings level of recent quarters."

For the second quarter, consolidated net profit increased 13.1 percent to 1.46 billion euros from last year's 1.29 billion euros. Earnings per share improved 14.7 percent to 1.17 euros from 1.02 euros in the previous year.

Operating profit or EBIT was 2.34 billion euros, up 12.2 percent year-over-year, while EBIT margin at 9.7 percent was slightly below the prior-year level of 10.7 percent.

Quarterly revenue increased 23.4 percent to 24.03 billion euros from 19.47 billion euros a year ago.

Express division revenue grew 17.5 percent despite moderately lower volumes for international time-definite express shipments, while its EBIT was moderately lower year on year.

Global Forwarding, Freight recorded a significant jump in revenue of 55.8 percent with sustained price and margin dynamics in the international transport markets, and EBIT more than doubled. In the segment, Air freight volumes decreased moderately, while Ocean freight volumes grew 11.3 percent.

Supply Chain's revenue climbed 22.7 percent and EBIT improved 23.2 percent driven by increased warehousing and distribution activities.

eCommerce Solutions' revenue increased in all regions and came in 5.4 percent higher than the previous year.

Post & Parcel Germany's EBIT and revenues were lower the quarter. As expected, parcel volumes continued to normalize, coming in roughly at the same level seen in 2020.

In Germany, Deutsche Post shares were trading at 42.43 euros, up 6.25 percent.

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