Group follows up on record result in 2020 and more than triples EBIT to EUR1.9 billion in the first quarter 2021; net profit jumps to EUR1.2 billion
Group revenue surges to EUR18.9 billion; organic growth of 26% achieved
In the first quarter of 2021, all five divisions were able to increase revenue and achieve a positive earnings performance
Earnings guidance for 2021 raised significantly due to positive business performance
Deutsche Post DHL (DP DHL) posted its strongest opening quarter to date with net profit jumping fourfold to EUR1.2 billion (US$1.4 billion), prompting the German logistics giant to raise its earnings guidance for 2021 significantly.
DP DHL on May 5 announced a consolidated net profit of EUR1.190 billion in the first quarter, up 295.3% from EUR301 million in the same period in 2020. Earnings before interest and taxes (EBIT) soared to EUR1.9 billion, higher by 222.8% from EUR592 million in Q1 2020, while revenue in the first quarter of this year rose by 22% to EUR18.9 billion from EUR15.5 billion last year.
The company in its statement said it benefited from the continued strong momentum in global e-commerce and the simultaneous recovery in world trade.
The group has as a result raised its short- and medium-term targets. It now expects EBIT of more than EUR6.7 billion for 2021, much higher than the previous target of EUR5.6 billion.
For 2023, it expects EBIT of more than EUR7.0 billion compared to the previous forecast of more than EUR6.0 billion.
Over the same period, the group will now invest around EUR11.0 billion (from the previous EUR9.5 billion to EUR10.5 billion) in its networks.
“We had the best opening quarter ever and were able to unleash our full strength as a Group. All five of our divisions are on track for growth and are ideally positioned to benefit from the continuing boom in e-commerce and the resurgence in global trade,” said Frank Appel, CEO of DP DHL group.
“We expect further growth in the coming quarters, even with growth rates normalizing over time. We are therefore stepping up investments in our infrastructure to be able to continue to optimally serve higher shipment volumes,” said Appel.
All five divisions were able to significantly increase EBIT and revenue.
The express, e-commerce solutions, and post & parcel Germany divisions especially benefited from the sustained momentum in e-commerce leading to a sharp rise in shipment volumes in the national and international parcel business.
The global freight forwarding and supply chain divisions but also express division benefited particularly strongly from the rapid recovery in world trade and the growing B2B business.