DP DHL Group posts 20% higher Q1 revenues
Group revenue rises to €22.6 billion (US$23.82 billion) in the first quarter of 2022 on steady strong demand for transport services while capacity remains constrained
Global B2B business, the major growth driver, lifts EBIT to €2.2 billion
Free cash flow adjusted for acquisitions at €1.1 billion on prior year’s record level
Balanced portfolio proves resilient despite economic uncertainty
Deutsche Post DHL Group posted revenues of €22.6 billion (US$23.82 billion) in the first quarter of the year, up 19.8% year-on-year, the company announced on May 3.
The group, headquartered in Bonn, Germany, also recorded an excellent opening quarter this year with operating profit (EBIT) of €2.2 billion, compared with €1.9 billion in Q1 2021, as DP DHL successfully balanced higher energy prices and transport costs.
At 9.6%, the EBIT margin in the first quarter this year was comparable to the 10.1% in Q1 2021.
“The first quarter saw the expected normalization in e-commerce. However, we were able to overcompensate that development with strong results in our global logistics activities. Once again, our portfolio – balanced by region and sector – proved to be a strong and resilient foundation for our success,” said Frank Appel, chief executive of DP DHL.
The global B2B business was the key growth driver in the first quarter, DP DHL said. The group added that its global forwarding, freight and supply chain divisions, in particular, as well as express, benefited from a solid development in global trade and stronger B2B business.
Earnings in the global forwarding and freight divisions almost tripled due to an exceptionally positive performance in the air and ocean freight business, DP DHL said.
In the domestic and international parcel businesses, B2C shipment volumes normalized at the start of 2022 after an exceptionally high level in the previous year, due to COVID-related restrictions on public life in many places.
Accordingly, earnings of ecommerce solutions and Post & Parcel Germany were below the very strong level of 2021.
“Overall, we had a good start into the year and further increased our earnings,” said Appel. With regard to the consequences of the Russian war on Ukraine, he added: “Following the outbreak of war, global trade has so far proven resilient, yet we are closely monitoring the increasing challenges to global economic development.”
For the rest of the year, DP DHL said it continues to expect EBIT of €8.0 billion, plus or minus 5%. For 2024, the company forecast that EBIT will increase to around €8.5 billion.
With the short- and medium-term outlook for the development of free cash flow and gross capital expenditure confirmed, the group expects free cash flow of €3.6 billion (+/– 5%) this year, with a cumulative free cash flow forecast of around €11 billion for 2022-2024.
The outlook for capex in 2022 remains at €4.2 billion, with a cumulative capex of around €12 billion for 2022-2024.