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The DHL Group reported operating profit (EBIT) of 1.35 billion euros in Q2, down 20.2% from the same prior year period
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The latest figure is in line with expectations for the period but well exceeded the 769 million euros posted in Q2 of pre-pandemic year 2019
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Group revenues of 20.639 billion euros were up 2.7% despite the persistently weak economic environment
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EBIT is expected at between 6.0 and 6.6 billion euros and free cash flow, excluding acquisitions and divestments, of around 3.0 billion euros for the 2024 financial year
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In its medium-term forecast for 2026, DHL Group continues to expect an operating profit of between 7.5 and 8.5 billion euros
The DHL Group reported operating profit (EBIT) of 1.35 billion euros in the second quarter of the year, down 20.2%, from the prior-year level of 1.7 billion euros.
The latest figure is in line with expectations for the period but well exceeded the 769 million euros posted in the second quarter of pre-pandemic year 2019.
Group revenues of 20.639 billion euros were up 2.7% in the second quarter of the year “despite the persistently weak economic environment,” the German-based express and logistics company said in a statement.
“As a result of our balanced cost and capacity management, we are in good shape even in a weak economic environment. And thanks to our unique logistics portfolio we are well prepared for when global trade regains momentum,” DHL Group chief financial officer Melanie Kreis said.
The Group said it is convinced it is well on track to meet its targets for the 2024 financial year.
EBIT is expected at between 6.0 billion euros and 6.6 billion euros and free cash flow, excluding acquisitions and divestments, of around 3.0 billion euros.
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 its medium-term forecast for 2026, DHL Group continues to anticipate an operating profit of between 7.5 billion euros and 8.5 billion euros.
Revenues per division
Revenues of the express division revenues rose 1.6% in the second quarter to 6.22 billion euros.
As expected, express’ overall shipment volumes dropped although B2B shipments grew slightly, the company said.
The forwarding and freight division revenues slightly edged up 0.8% to 4.9 billion euros in the second quarter on higher volumes (5.3% in air freight and 6.4% in ocean freight) and increasing freight rates.
EBIT was down 28.1% to 279 million euros.
“For the second consecutive quarter, the division recorded mid-single digit growth in air and ocean freight volumes against a low comparison base,” DHL Group said.
The supply chain division revenues grew 2.8% to 4.4 billion euros, continuing to benefit from growth in ecommerce and omnishoring. EBIT reached 279 million, up 2.6% year-on-year in the second quarter.
E-commerce revenues jumped 10.5% to 1.7 billion euros with EBIT down 14.1% to 67 million euros.
The Post & Parcel Germany division registered gains in revenue and earnings attributable exclusively to the Parcel Germany business unit (4.6% growth in volumes compared with Q2 2023). The German postal business declined as expected (-6.8% in volumes compared with Q2 2023), although the European election and other factors mitigated this trend somewhat.
READ: DHL Group hits 2023 targets despite weak global economy
