- Group revenue up slightly year on year in the second quarter of 2024 at EUR 20.6 billion (Q2 2023: EUR 20.1 billion)
- Operating profit (EBIT) of EUR 1.35 billion as expected below prior-year figure (Q2 2023: EUR 1.7 billion), but significantly above pre-pandemic level (Q2 2019: EUR 769 million)
- Free cash flow of EUR 344 million (Q2 2023: EUR 450 million;
- Q2 2019: EUR -547 million)
- Guidance for operating profit of between EUR 6.0 billion and EUR 6.6 billion confirmed
- Melanie Kreis, CFO DHL Group: “Thanks to our unique logistics portfolio we are well prepared for when global trade regains momentum.”
DHL Group, the world’s leading logistics company, met market expectations in the second quarter of 2024. Despite the persistently weak economic environment, Group revenue was slightly higher than in the previous year at EUR 20.6 billion (Q2 2023: EUR 20.1 billion). As expected, operating profit (EBIT) was below the prior-year level at EUR 1.35 billion (Q2 2023: EUR 1.7 billion). However, a comparison with EBIT in the pre-pandemic year 2019 (Q2 2019: EUR 769 million) demonstrates DHL Group’s structurally improved profitability.
Focus on safeguarding earnings and investments in growth trends
Gross capital expenditure (capex) amounted to EUR 633 million in the second quarter (Q2 2023: EUR 708 million). Given global economic parameters, DHL Group continues to concentrate on safeguarding earnings and cash flow and focuses its capital expenditure on its structural growth drivers omnishoring, e-commerce, sustainability, and digitalization. Free cash flow was EUR 344 million (Q2 2023: EUR 450 million; Q2 2019: EUR -547 million).
DHL Group generated consolidated net profit after non-controlling interests of EUR 744 million in the second quarter of 2024 (Q2 2023: EUR 978 million). Basic earnings per share were EUR 0.64 in the same period, compared with EUR 0.82 in the second quarter of 2023. The Management Board resolution of May 2, 2024 reduced the issued capital by EUR 39 million by retiring 39,059,409 treasury shares. The issued capital now comprises 1,200,000,000 no-par value registered shares (ordinary shares).
Group confirms forecast for 2024
The global economy developed in line with DHL Group’s expectations in the first half of 2024: a broad and dynamic economic upturn failed to materialize. In the second half of the year, DHL Group expects typical positive effects from peak season. In conjunction with ongoing earnings and cost management, the Group is convinced it is well on track to meet its targets for the 2024 financial year. The Group confirms its forecast for the 2024 financial year. It anticipates EBIT of between EUR 6.0 billion and EUR 6.6 billion as well as free cash flow excluding acquisitions and divestments of around EUR 3.0 billion.
In its medium-term forecast for 2026, DHL Group continues to expect an operating profit of between EUR 7.5 billion and EUR 8.5 billion.
Express: Division posts double-digit EBIT margin even in challenging environment
Express's overall shipment volumes declined somewhat, as expected, although B2B shipment volumes increased slightly. The division addressed the weak economic environment with productivity improvements, network optimization, and ongoing yield and cost management. Despite low network utilization, the division recorded a double-digit EBIT margin.
Global Forwarding, Freight: Growth in volumes continues
Global Forwarding, Freight registered a slight increase in revenue. For the second consecutive quarter, the division recorded mid-single-digit growth in air and ocean freight volumes against a low comparison base.
Supply Chain: EBIT growth continues
The Supply Chain division continues to benefit from the growth trends in e-commerce and omnishoring. New business, contract renewals, and expanding e-commerce contributed to higher revenue in almost all regions and sectors.
eCommerce: Revenue increases year on year
The eCommerce division's revenue and volume growth continues, as the structural e-commerce trend is more than offsetting reticent consumer spending. EBIT development in the second quarter particularly reflected ongoing investments to expand networks and improve service quality.
Post & Parcel Germany: Structural trend from letter mail to parcels continues
The Post & Parcel Germany division registered gains in revenue and earnings. The positive development was attributable exclusively to the Parcel Germany business unit (4.6 percent growth in volumes compared with Q2 2023). The German postal business declined as expected (-6.8 percent decline in volumes compared with Q2 2023), although the European election and other factors mitigated this trend somewhat.
