Deutsche Post DHL: Profits to hit €8 billion by 2023

Deutsche Post DHL saw revenues grow by 23.5% in the third quarter of 2021. Group revenue hit €20 billion and operating profits grew by 28.6% to €1.8 billion in the quarter.

The global logistics giant has also raised its group operating profit forecast for the full year to more than €7.7 billion, which will be a record for the firm. CEO Frank Appel said, “We achieved a sustainably higher level of earnings and anticipate for 2023 an EBIT of more than EUR 8.0 billion.”

The carrier benefitted from the pandemic surge in parcel volumes, and says that even as high street stores reopened, volumes have settled at a higher level than pre-pandemic.

“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 Appel. “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.”  

Highlights of its divisions included operating profit at Express increasing significantly to €971 million (Q3 2020: €753 million). Revenue grew by 21.4% to around €5.9 billion. Meanwhile the  eCommerce Solutions division increased its operating profit to €91 million (Q3 2020: €76 million). Revenue increased by 13.2% to around €1.4 billion. Post & Parcel Germany Division generated EBIT of €300 million (Q3 2020: €320 million), despite a revenue growth to €4.0 billion (Q3 2020: EUR 3.8 billion). The drop in profit here was attributed to preparing for the coming Christmas peak delivery season, so should be significantly offset in the coming months.