CEO DHL Group on 2024 results: we achieved substantial revenue and earnings growth
DHL Group closed 2024 with significant revenue and earnings growth in the fourth quarter. Revenue increased 6.4 percent to EUR 22.7 billion in the fourth quarter; EBIT rose 12.9 percent to EUR 1.9 billion in the same period.
Despite the challenging economic environment, the Group even achieved a revenue increase of 3.0 percent to EUR 84.2 billion in 2024 (2023: EUR 81.8 billion, pre-pandemic year 2019: EUR 63.3 billion). As expected, operating profit (EBIT) was 7.2 percent below the prior-year figure at EUR 5.9 billion (2023: EUR 6.3 billion), but well above the pre-pandemic level of 2019 (EUR 4.1 billion).
“We increased our revenue in 2024 despite the challenging environment. In a strong fourth quarter with good service quality for our customers, we achieved substantial revenue and earnings growth. We expect the global political and economic situation to remain volatile in 2025. However, we want to continue growing in this environment and are focusing on the measures we can control. We are actively increasing our efficiency and accelerating our sustainable growth ambitions with our Group cost program ‘Fit for Growth’.”
Tobias Meyer, CEO DHL Group
Efficient capital deployment
The Group’s gross capital expenditure (capex) amounted to EUR 3.1 billion in the financial year 2024 (2023: EUR 3.4 billion). The company’s effective yield management and targeted investments contributed to strong free cash flow (excluding M&A) of EUR 3.0 billion (2023: EUR 3.3 billion; 2019: EUR 187 million).
Overall, DHL Group generated consolidated net profit after non-controlling interests of EUR 3.3 billion in 2024 (2023: EUR 3.7 billion). In the same period, basic earnings per share amounted to EUR 2.86, compared with EUR 3.09 in 2023.
Group cost program “Fit for Growth” designed to improve cost base by more than EUR 1 billion
To support the company’s growth, the Management Board launched the Group program “Fit for Growth”. This program is part of the 2030 strategy, by which the company aims to become leaner and more efficient overall. Through “Fit for Growth”, the Group aims to structurally improve its cost base by more than EUR 1 billion. The Group-wide program includes various measures across all business units and will realize the full impact in the 2027 financial year. At Post & Parcel Germany, around 8,000 positions will be reduced in a socially responsible manner in 2025 as part of “Fit for Growth”.
Focus on dividend continuity; share buyback program increased and extended
The Management Board and the Supervisory Board plan to propose a stable dividend of EUR 1.85 per share (2023: EUR 1.85 per share) to shareholders at the Annual General Meeting on May 2, 2025. Subject to approval by the shareholders, the Group would distribute a total amount of EUR 2.1 billion. Based on the dividend proposal, the payout ratio would be 64 percent. The Board of Management has also decided to increase the Group’s share buyback program, which was launched in 2022, by EUR 2 billion to up to EUR 6 billion and to extend it until 2026.
“DHL Group is an attractive investment for shareholders. We underscore this with the dividend proposal and an extended, topped-up share buyback program. We have a strong balance sheet and high financial performance. We expect to return to earnings growth in 2025 and are actively supporting this process with our ‘Fit for Growth’ program and targeted investments in future growth markets.”
Melanie Kreis, CFO DHL Group
