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Group EBIT rose 15% to €2.04 billion ($1.98 billion) in third quarter 2022
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2022 EBIT guidance will be upgraded on November 8
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CEO Frank Appel says the well-diversified logistics services provided the group with resilience to successfully cope with a fast-changing economic environment
Deutsche Post DHL’s preliminary 3Q EBIT (earnings before interest and tax) this year rose to €2.04 billion (US$1.98 billion) from €1.771 billion in the same period last year, the global logistics company disclosed on October 10.
The company said the strong EBIT expansion in 3Q 2022 resulted from e-commerce-driven shipment volumes approaching strongly elevated levels delivered last year.
The increased earnings took group EBIT for the first nine months of this year to around €6.5 billion, up 12.7% from €5.765 billion a year ago.
As a result, Deutsche Post DHL said it will revise its 2022 EBIT guidance of €8 billion +/-5% upwards with the formal release of its full third quarter 2022 earnings on November 8.
“The breadth of our well-diversified logistics services provides us with resilience to successfully cope with a fast changing economic environment,” said DPDHL chief executive Frank Appel said in a statement.
In 2021, strong performance in all divisions as the COVID-19 pandemic generated robust demand for e-commerce contributed to record group revenue of €81.7 billion.
The group recorded a good business development in the third quarter of this year. As expected, year-on-year comparison of e-commerce-driven B2C shipment volumes improved in the third quarter of 2022, after volumes recorded a more pronounced decline in the first half.
Against the backdrop of overall macroeconomic uncertainties, transport volumes in the B2B business reflected a softer demand.
Consequently, the capacity situation in Ocean and Air Freight markets division eased. Overall network activities in all DHL divisions maintained good utilization levels leading to an improved EBIT.
How the divisions performed
Express: EBIT in the Express division reached around €1.01 billion in the third quarter of 2022, compared with 3Q 2021 EBIT of €971 million.
Global Forwarding, Freight: EBIT in Global Forwarding, Freight stood at around €585 million in the third quarter of 2022, once more surpassing last year’s €372 million third-quarter.
Supply Chain: EBIT at Supply Chain came in at around €220 million in Q3 2022, also well above last year’s third-quarter earnings of €142 million.
eCommerce Solutions: eCommerce Solutions recorded EBIT of around €85 million in the third quarter of 2022, lower than €91 million a year ago.
Post & Parcel Germany: EBIT in Post & Parcel Germany in the third quarter of 2022 was around €285 million, as against €300 million for the same period last year.
The continued positive earnings development successfully led to a growing free cash flow. In the third quarter 2022, free cash flow was more than €1.5 billion, versus €1.257 billion in 3Q 2021.
The comprehensive disclosure for the third quarter 2022 will be published as planned on November 8, 2022.
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