Preliminary results: Deutsche Post DHL Group raises forecasts after record quarterly results and once again announces Corona bonus for its employees
BONN, Germany – (COMMERCIAL THREAD) – Deutsche Post DHL Group (symbol: DPW), the world leader in logistics, today released its preliminary results for the second quarter of 2021. At the same time, the outlook for the current financial year and for 2023 has been raised . In addition, a unique corona bonus1 for about 550,000 employees worldwide has been decided. Preliminary second quarter operating profit (EBIT) improved to a record high of around 2,075 million euros (Q2 2020: 912 million euros) and more than doubled year-on-year previous. Against a backdrop of excellent commercial performance, the Group raised its EBIT outlook for 2021 to over â‚¬ 7.0 billion (to date: over â‚¬ 6.7 billion). The medium-term EBIT outlook for 2023 is now expected to exceed â‚¬ 7.4 billion (so far: over â‚¬ 7.0 billion).
â€œThe second quarter has proven once again that the volume of global trade continues to recover and that the e-commerce boom is sustainable – and we are strongly benefiting from both. All divisions continue to operate at full capacity around the world with double-digit EBIT growth rates. We want to thank our employees who are doing a fantastic job all over the world and deserve another corona bonus, â€said Frank Appel, CEO of Deutsche Post DHL Group.
The group again grants a one-time corona bonus of around â‚¬ 200 million
As a thank you for their tireless efforts during the pandemic, the Group has decided to once again grant a corona bonus of EUR 3002 to employees around the world. This one-time payment is intended for approximately 550,000 colleagues in all divisions and countries. Excluded are executives. The corresponding expenditure of around â‚¬ 200 million will be recognized in the third quarter of 2021 and is already included in the updated earnings outlook for 2021.
All divisions achieved a significant jump in their profits
All divisions significantly exceeded the results of the previous year. Network capacity utilization was consistently high in the second quarter of 2021. B2C shipping volumes remained higher than last year across all networks, while the recovery of B2B activities continued to gain momentum. At the same time, the situation of limited capacity in the sea and air freight markets remained unchanged.
Express: EBIT for the Express division reached approximately â‚¬ 1,170 million in the second quarter of 2021, compared to â‚¬ 565 million in the previous year quarter.
Global Shipping, Freight: Global Forwarding, Freight’s EBIT was around 315 million euros in the second quarter of 2021, also significantly ahead of the previous year’s result of 190 million euros.
Supply chain: Supply chain EBIT was around 195 million euros in the second quarter of 2021. It was 33 million euros in the second quarter of 2020 at the initial stage of the pandemic.
E-commerce solutions: eCommerce Solutions recorded EBIT of around 115 million euros in the second quarter of 2021, significantly higher than the second quarter result of last year of 1 million euros.
Post & Parcels Germany: Post & Parcel Germany’s EBIT in Q2 2021 was approximately â‚¬ 315 million (Q2 2020: â‚¬ 264 million).
The positive development of the activity is based on the continued strong development of cash flow. Free cash flow in the second quarter of 2021 amounts to more than 800 million euros (Q2 2020: 605 million euros). For the first half of 2021, free cash flow now amounts to more than 2.0 billion euros (H1 2020: 196 million euros).
Profit outlook noted with expectation of unchanged high shipment volumes and improved efficiency
Given the continued earnings momentum, the Group’s EBIT for 2021 is now expected to exceed â‚¬ 7.0 billion (so far: over â‚¬ 6.7 billion). This includes additional spending of around â‚¬ 200 million for the one-time corona bonus. For 2021 as a whole, the Group now forecasts free cash flow of more than 3.2 billion euros (to date: more than 3.0 billion euros). Gross investments in 2021 are expected to reach around 3.9 billion euros (so far: around 3.8 billion euros). The Group’s tax rate for the whole of 2021 will now reach 28%, the upper limit of the previously guided range of 26 to 28%.
The medium-term forecast for the Group’s 2023 EBIT is now expected to exceed â‚¬ 7.4 billion (previously: over â‚¬ 7.0 billion). The 2021-2023 aggregate forecast for free cash flow remained unchanged at around 9.0 billion euros. The cumulative outlook for gross investments has also been confirmed at around 11.0 billion euros for the period 2021-2023.
Full disclosure for Q2 / H1 2021 will be released as scheduled on August 5, 2021.
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Deutsche Post DHL Group Deutsche Post DHL Group is the world leader in logistics. The Group connects people and markets and is a catalyst for global trade. It aspires to be the first choice of customers, employees and investors around the world. The Group contributes to the world through responsible business practices, corporate citizenship and environmental activities. By 2050, the Deutsche Post DHL group aims to achieve zero-emission logistics.
Deutsche Post DHL Group is home to two strong brands: Deutsche Post is Europe’s leading postal service. DHL offers a full range of international express, freight transportation and supply chain management services, as well as logistics solutions for e-commerce. Deutsche Post DHL Group employs around 570,000 people in more than 220 countries and territories around the world. The Group achieved sales of more than 66 billion euros in 2020.
THE logistics company for the world.
1 300 euros per full-time employee
2 300 euros per full-time employee