Appel: After nine months, we have already exceeded our record full-year result from the previous year
Deutsche Post DHL Group has released its Q3 results for 2021 revealing the Group increased its revenue by 23.5 percent year-on-year to EUR 20.0 billion. The dynamic development was driven in particular by the noticeable increase in global trade.
This led to a strong demand for logistics services worldwide and a jump in earnings, particularly at the DHL divisions. Although brick-and-mortar retail has reopened, the shipment volumes in e-commerce stabilized on a higher level.
The Group’s operating profit (EBIT) in the third quarter of 2021 increased by 28.6 percent year-on-year to EUR 1.8 billion. The EBIT margin improved to 8.8 percent (previous year: 8.5 percent). Deutsche Post DHL Group thus confirmed the preliminary quarterly figures published at the beginning of October. Against the background of the continued very positive development of revenue and earnings, the Group has again raised its earnings outlook: for the financial year 2021, Deutsche Post DHL Group now expects a record result of more than EUR 7.7 billion (previously: more than EUR 7.0 billion). For 2023 the Group anticipates an EBIT of more than EUR 8.0 billion (previously: more than EUR 7.4 billion).
“Our business continued to develop extremely positively in the third quarter of 2021. After nine months, we have already exceeded our record full-year result from the previous year”, said Frank Appel, CEO of Deutsche Post DHL Group. “Based on this substantially higher earnings level, the prospects for Deutsche Post DHL Group’s future development remain positive: Global trade returns to its old strength. Online shopping is maintaining its new higher level. With our focus on e-commerce and digitalization, we have positioned Deutsche Post DHL Group excellently. We will build on that momentum and expect an EBIT of more than EUR 8.0 billion in 2023.”
“In the first nine months of this year, we more than doubled EBIT, net profit and free cash flow. Thanks to the relentless joint efforts we were able to successfully convert the structurally higher demand for logistics solutions into profitable growth. It is particularly pleasing that this strength spreads across all divisions and comes along with sustainably improved cash generation”, said CFO Melanie Kreis.
Post & Parcel Germany: online retailing enables further revenue growth
The Post & Parcel Germany Division generated EBIT of EUR 300 million in the third quarter of 2021 (Q3 2020: EUR 320 million). This included increased staff and material costs for the deliberate build-up of additional resources for the upcoming Christmas business. Revenue increased to around EUR 4.0 billion (Q3 2020: EUR 3.8 billion) thanks to continued parcel growth. Parcel volumes grew by 4.6 percent year-on-year in the past quarter. With an average shipment volume of around 5.8 million parcels per working day, growth has continued even after the easing of pandemic-related restrictions. Volumes in the mail business increased slightly. The reason for this was the exceptionally high absentee voting rate in the federal election as well as in the state elections in Germany. However, absolute letter volumes remained significantly below pre-pandemic levels. At 7.6 percent, the EBIT margin was below the previous year’s level (Q3 2020: 8.4 percent).