Deutsche Post DHL (DP DHL) has increased its guidance for 2020 after a very good third quarter performance and in expectation of “an exceptionally strong Christmas business.”
The logistics and transport company in a statement said earnings before interest and taxes (EBIT) increased to around EUR1.37 billion (US$1.62 billion) in the third quarter, around 45% higher than the EUR942 million earned in the same period in 2019.
Group CEO Frank Appel said the company’s positive third-quarter performance was due to the dynamic e-commerce growth in its businesses.
He added: “We are now fully focused on preparing for an exceptionally strong Christmas business.”
By segment, operating profit in Post & Parcel Germany rose to around EUR320 million in the third quarter from EUR304 million year-on-year despite one-off payments totaling EUR95 million.
The express division increased its EBIT to around EUR750 million from EUR454 million last year, driven by strong international volumes. Operating profit in global freight forwarding stood at around EUR155 million, above the previous year’s Q3 result of EUR124 million. Supply chain earnings recovered with EBIT at around EUR110 million in the third quarter from 2019’s EUR162 million.
The DHL e-commerce unit recorded an EBIT of around EUR75 million in the third quarter, way above the previous year’s EBIT of EUR6 million. The expansion was driven by strong B2C volumes.
Looking ahead, DP DHL has adjusted the outlook for the full year 2020 to between EUR4.1 billion and EUR4.4 billion, up from the previously declared EUR3.5 billion to EUR3.8 billion as it expects a very strong peak season driven in particular by e-commerce.
The group continues to expect an EBIT of around EUR1.5 billion for the Post & Parcel Germany division. For its DHL divisions, it now forecasts an EBIT between EUR3.3 billion and EUR3.6 billion, up from the previous EUR2.8 billion to EUR3.1 billion.
Photo courtesy of DP DHL
