Deutsche Post DHL ends 2022 with record revenue

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2022 with record revenue
Deutsche Post DHL Group says its revenue jump resulted entirely from the international business of the DHL divisions. Photo from DP-DHL
  • Group revenue in 2022 reaches €94.4 billion (around US$101 billion) and EBIT increases 6% to €8.4 billion ($9.2 billion)
  • Free cash flow (excluding net merger & acquisition fund) exceeds expectations at €4.6 billion
  • Dividend increase of €1.85 per share proposed; share buyback program up by €1.0 billion
  • CEO Frank Appel says DP DHL has again demonstrated group capability of “surmounting challenging environments and looking ahead in the best shape ever”

Deutsche Post DHL Group managed to end 2022 with record revenue of €94.4 billion (around $101 million), exceeding its record proceeds in the previous year.

The German logistics giant said its revenue jump resulted entirely from the international business of the DHL divisions, despite global trade and e-commerce normalizing in 2022 with slowing momentum in the final quarter. Consequently, shipment volumes slightly lagged the all-time high of 2021.

With flexible structures, the group said it was able to continue utilizing its global networks efficiently throughout the year. The company saw profits grow 20% in the first quarter and benefited from increasing demand for resilient supply chains in contract logistics and – particularly in the first half of 2022 – from high freight forwarding rates.

Overall, Deutsche Post DHL achieved a record operating profit (earnings before interest and tax, or EBIT) of €8.4 billion, compared with €8 billion in 2021.

The key driver was positive earnings development in DHL’s internationally operating divisions, which generated €7.6 billion EBIT (2021: €6.6 billion). With €1.3 billion, EBIT of Post & Parcel Germany fell about €500 million year on year. The group-wide EBIT margin was 8.9% (2021: 9.8%).

“We have demonstrated resilience and innovation capability in a challenging environment. Our course and strategy remain well on track. Once again, our thanks go to our employees for their extraordinary commitment in a challenging year,” said Frank Appel, CEO of Deutsche Post DHL.

Last year, the group invested a record sum of €4.1 billion (2021: €3.9 billion) in its operating business as well as in digitalization and sustainability. Further investments were made to modernize the DHL Express division’s aircraft fleet and to build new CO2-neutral delivery bases in Germany.

Excluding acquisitions, free cash flow set a new all-time high of €4.6 billion (2021: €4.1 billion). The exceptionally good result also reflected on higher net income. Deutsche Post DHL raised its net profit after non-controlling interests to €5.4 billion (2021: €5.1 billion). Basic earnings per share was €4.41.

The Board of Management and Supervisory Board will propose to shareholders at the annual general meeting on May 4, 2023, an increase of the dividend to €1.85 per share (2022: €1.80 per share). For 2023, the company foresees a gross capital expenditure in the range from €3.4 billion to €3.9 billion and predicts free cash flow of around €3.0 billion independent of the macroeconomic scenarios.

International logistics business of DHL divisions

DHL Express: Revenue rose to €27.6 billion (2021: €24.2 billion). Pricing measures, exchange rate and high fuel surcharges were the drivers of this development. EBIT eased 4.6% y-o-y to €4 billion mainly due to higher costs and negative exchange rate effects.

DHL Global Forwarding, Freight: This division achieved a significant jump in revenue and earnings in 2022 thanks to operational improvements and high freight rates. EBIT increased significantly to €2.3 billion (2021: €1.3 billion). Revenue jumped sharply to €30.2 billion (2021: €22.8 billion).

Air freight volumes were down 9.3% y-o-y, while road freight shipment volumes fell 4.8%. In ocean freight, transport volumes grew 4.8% due to the integration of the beverage logistics company Hillebrand. The division’s EBIT margin improved to an exceptionally high level of 7.6% (2021: 5.7%).

DHL Supply Chain:  The division saw its strongest ever figures for new business, with annualized revenue of about €1.5 billion in 2022 (2021: €1.4 billion). High demand pushed revenue up to €16.4 billion in 2022 (2021: €13.9 billion). EBIT reached a strong level of €893 million (2021: €705 million).

DHL eCommerce Solutions:  Revenue climbed to €6.1 billion (2021: €5.9 billion), driven mainly by pricing measures. The expected normalization of shipment volumes materialized, with a 6.3% decline in parcel volumes. Demand for reliable supply chains grew once again in 2022..

Post & Parcel Germany: The division’s revenue and earnings remained below previous year’s level. Revenue fell to €16.8 billion (2021: €17.4 billion), mainly due to the expected normalization in parcel shipments while facing limited opportunities for price adjustments in the letter mail business.