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The DHL Group ended 2024 with revenue up 3% year-on-year despite a challenging economic environment
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In the fourth quarter alone, revenue rose by 6.4% to 22.7 billion euros while earnings before interest and taxes jumped 12.9% to 1.9 billion euros
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The group expects operating profit of more than 6 billion euros in 2025
The DHL Group ended 2024 with revenue up 3% to 84.2 billion euros year-on-year despite the challenging economic environment, the company said in a statement.
“In a strong fourth quarter with good service quality for our customers, we achieved substantial revenue and earnings growth,” said Tobias Meyer, CEO of the DHL Group.
Fourth-quarter revenue rose by 6.4% to 22.7 billion euros in the fourth quarter, while earnings before interest and taxes (EBIT) increased by 12.9% to 1.9 billion euros.
As expected, operating profit (EBIT) was 7.2% in 2024 at 5.9 billion euros, below the previous-year figure but above the pre-pandemic level of 2019’s 4.1 billion euros.
Capital expenditure amounted to 3.1 billion euros in 2024. The company’s effective yield management and targeted investments contributed to strong free cash flow of 3.0 billion euros.
Overall, DHL Group generated consolidated net profit after non-controlling interests of 3.3 billion euros in 2024.
To support the company’s growth, the Management Board launched the “Fit for Growth” program, which is part of the 2030 strategy, by which the company aims to become leaner and more efficient overall.
Through the program, the Group aims to structurally improve its cost base by more than 1 billion euros.
The Group-wide program includes various measures across all business units and will realize the full impact in 2027.
At Post & Parcel Germany, some 8,000 positions will be cut in a socially responsible manner this year as part of “Fit for Growth.”
Focus on dividend continuity; share buyback program increased and extended The Management Board and the Supervisory Board plan to propose a stable dividend of EUR 1.85 per share to shareholders at the Annual General Meeting on May 2, 2025. Subject to approval by the shareholders, the Group will distribute a total of 2.1 billion euros.
Based on the dividend proposal, the payout ratio would be 64 percent. The Board of Management has also decided to increase the Group’s share buyback program, which was launched in 2022, by 2 billion euros to 6 billion euros and to extend it until next year.
As part of its corporate Strategy 2030 “Accelerate sustainable growth,” presented in September 2024, the Group added a fourth strategic bottom line – “Green Logistics of Choice” – to its existing ones “Employer of Choice,” “Provider of Choice” and “Investment of Choice.”
The Group has thus anchored all components of its ESG Roadmap in the corporate strategy and is pursuing measurable goals in the areas of environmental, social, and responsible corporate governance.
For example, logistics-related greenhouse gas emissions (GHG emissions) are to be reduced to less than 29 million tons of CO2 equivalents by 2030 despite considerable growth.
The Group made progress with its environmental indicators during the reporting period. At 33.77 million tons of CO2e, GHG emissions have developed better than expected. This development is partly due to declining transport volumes and decarbonization measures.
In total, DHL Group was able to reduce 1,584 kilotons of CO2e through decarbonization measures. The savings were largely attributable to the use of sustainable aviation fuels (SAF), the electrification of the pick-up and delivery fleet, and the use of renewable energies in buildings.
The company also expanded its “GoGreen” product range, with which DHL Group actively supports its customers in decarbonizing their supply chains. SAF accounted for around 3.5 percent of the aviation fuel used in DHL’s own aircraft fleet. This puts DHL Group in a leading position in logistics and aviation. In addition, more than 40 percent of the Group’s pick-up and delivery fleet consisted of electric vehicles in the reporting period.
Last year, DHL Group had around 39,100 e-vehicles in use for pick-up and delivery. Employee satisfaction in the financial year of 2024 was 82%. The proportion of women in middle and upper management rose by 1.2 percentage points to 28.4%. In terms of occupational safety, DHL Group reduced the accident rate per million working hours from 15.6 to 14.5.
READ: DHL enhances EV, battery supply chain solutions
In 2025, the company continues to anticipate a subdued macroeconomic environment. Based on this assumption, DHL Group expects an operating result of 6 billion euros, more or less, and a free cash flow of some 3 billion euros.
This outlook, however, does not cover potential impacts of changes in tariff or trade policies as these could have substantial negative but also positive effects for the DHL Group.
