Deutsche Post DHL Group increases 2022 earnings guidance
Revenue up 20% to €24 billion for Q32022, earnings up 1% €2 billion
Deutsche Post DHL Group increased its third quarter 2022 revenue by 20 percent to €24 billion, operating profit (EBIT) improved over 15 percent to €2 billion and EBIT margin at 8.5 percent was slightly below the prior-year level (Q32021: 8.8 percent).
"Even in a weakening macroeconomic environment, the Group was able to efficiently utilize its global networks thanks to flexible structures and close cooperation between the divisions. Returning growth in the domestic parcel business and the ongoing trend towards e-commerce also contributed to this," says an official release.
"The first three quarters of the year were the most successful in our company's history," says Frank Appel, CEO, Deutsche Post DHL Group. "EBIT remained above €2 billion in all three quarters. Even if global growth is losing momentum, we are well on track to achieve the best result ever with an EBIT of around €8.4 billion. The foundation for our success is our global logistics business, which is extremely well balanced in terms of sectors and regions, powered by our dedicated workforce. This makes us a reliable partner for our customers all around the world - especially in these volatile times."
Global Forwarding, Freight does well
The Global Forwarding, Freight division closed the third quarter with EBIT growth of 57 percent to €584 million. "The main reason for this was the strong revenue performance. Revenue increased significantly by 38.2 percent to €7.9 billion due to the continued high freight rates. Air freight volumes decreased year-on-year but were at a comparable level seen in the second quarter of 2022. In ocean freight, transport volumes grew by 11.9 percent due to the integration of the acquired beverage logistics company Hillebrand. The EBIT margin improved significantly to 7.4 percent (Q3 2021: 6.5 percent)."
2022 EBIT guidance hiked - mid-term outlook confirmed
The Group has raised its EBIT guidance for the current financial year to a record level of around €8.4 billion (previously: €8 billion with a maximum variance of + / - 5 percent). "Looking ahead to the final quarter, Deutsche Post DHL Group is well positioned despite continuing global economic uncertainties and prepares for a peak season with the typical seasonal development of shipment volumes in its B2C businesses. The mid-term outlook for 2024 remains stable with an EBIT of around €8.5 billion. The Group closely monitors the slowing global growth momentum and uses well-established levers. Based on a flexible adjustment of networks, disciplined yield and cost management, the Group is able to respond successfully to a macroeconomic downturn."
For the first nine months, revenue increased 21 percent to €71 billion ($71 billion) and EBIT was up 13 percent to €6.5 billion ($6.5 billion).