DPDHL Q2: all of our divisions now make a pivotal contribution
Deutsche Post DHL Group has stayed on track for growth in the second quarter 2021 and revenue increased significantly by 22.2 percent to EUR 19.5 billion (Q2 2020: EUR 15.9 billion).
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. With these results, the Group exceeded the preliminary quarterly figures published in July and confirmed its increased guidance. The renewed one-time Covid bonus for approx. 550,000 employees worldwide, also announced in July, is to be paid in the fourth quarter 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.
Strategic focus unleashes positive effect
The focus on the profitable core business and the megatrends of e-commerce and digitalization, defined as part of Strategy 2025, continued to have a positive impact on business performance in the second quarter 2021. 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. The divisions more focused on B2B business mastered the persistently challenging conditions in the international air and ocean freight transport markets with an exceptionally high level of efficiency. 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. This includes a Covid bonus scheduled to be paid to approx. 550,000 employees worldwide in the fourth quarter of 2021, with a total volume of around EUR 200 million. The mid-term 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.
Increased investments based on outstanding cash flow development
The Group’s operating cash flow increased significantly year-on-year by 36.0 percent to more than EUR 2.2 billion. Gross capex totaling EUR 794 million (Q2 2020: EUR 482 million) focused in the past quarter on the expansion of the aircraft fleet in the Express division, additional sorting capacity at Post & Parcel Germany and the deployment of further automation technology in the Supply Chain division. Free cash flow in the same period amounted to EUR 919 million, thus well above the prior-year figure of EUR 605 million.
“After more than a year into the Covid pandemic, e-commerce has seen structural growth and shipment volumes reached a substantially higher level. At the same time, our business is benefitting from a resurgence in business customer activities. Based on significantly elevated demand for logistics solutions, all divisions are able to utilize their networks more efficiently than ever before. Thus, we have an excellent position to grow further profitably in the future with targeted investments in our core business and digitalization,” said CFO Melanie Kreis.
