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Deutsche Post Lifts FY22 View After Strong Q3 Results; Backs FY24 Outlook

deutschepost nov08 lt

Package delivery and logistic major Deutsche Post DHL Group Tuesday raised fiscal 2022 EBIT guidance after reporting higher third-quarter profit with strong revenues. The company also maintained its mid-term outlook for 2024.

CEO Frank Appel said, "The first three quarters of the year were the most successful in our company's history thanks to the international DHL business.... Even if global growth is losing momentum, we are well on track to achieve the best result ever with an EBIT of around EUR 8.4 billion."

The company previously expected EBIT of 8.0 billion euros with a maximum variance of + / - 5 percent.

Looking ahead to the final quarter, Deutsche Post DHL said it prepares for a peak season with the typical seasonal development of shipment volumes in its B2C businesses, despite continuing global economic uncertainties.

The mid-term outlook for 2024 remains stable with an EBIT of around 8.5 billion euros.

In the third quarter, consolidated net profit grew 13 percent to 1.23 billion euros from last year's 1.09 billion euros. Earnings per share were 1.02 euros, up 16 percent from 0.88 euro last year.

Operating profit or EBIT improved 15.2 percent from last year to 2.0 billion euros. At 8.5 percent, the EBIT margin was slightly below the prior-year level of 8.8 percent.

Revenue grew 20 percent to 24.04 billion euros from last year's 20.04 billion euros.

The strong revenue and EBIT growth reflected the B2B business of DHL's Global Forwarding, Freight, Supply Chain and Express divisions.

The results also were benefited by returning growth in the domestic parcel business and the ongoing trend towards e-commerce.

The Express division's EBIT increased 4.2 percent, while EBIT margin declined, and revenue climbed 21.8 percent. International time-definite express or TDI shipments per day declined 2.6 percent.

The Global Forwarding, Freight division's EBIT growth was 57 percent and revenue increased significantly by 38.2 percent due to the continued high freight rates. Air freight volumes decreased year-on-year.

Supply Chain EBIT improved significantly by 54.9 percent, ans revenue increased across all regions, rising by a total of 14.5 percent.

eCommerce Solutions revenue increased in all regions, rising by 8.2 percent.

In Germany, Deutsche Post shares were trading at 35.48 euros, down 0.96 percent.

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