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The DHL Group posted a 6.2% year-on-year rise in revenues of 20.6 billion euro in the third quarter of 2024
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Operating profits of 1.372 billion euros met market expectation and were also significantly above pre-pandemic levels
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Capital expenditures, meanwhile, totaled 690 million euros, while free cash flow was at 723 million euros
The DHL Group posted a 6.2% year-on-year rise in revenues of 20.6 billion euro ($22.077 billion) in the third quarter.
Operating profits of 1.372 billion euros ($1.471 billion) met market expectation and were also significantly above pre-pandemic levels.
Capital expenditures, meanwhile, totaled 690 million euros ($740 million) while free cash flow was at 723 million euros ($775.482 million).
Overall, DHL Group had consolidated net profit of 751 million euros ($805.515 million) in the third quarter of this year.
“The weak momentum of global trade was a recurring theme throughout the first nine months of 2024. Nevertheless, we significantly increased revenue in the third quarter and initiated a turnaround in EBIT compared to the prior-year quarter. Now it is crucial to provide our customers with the expected high quality during the peak season and to deliver corresponding profitability,” said Tobias Meyer, CEO DHL Group.
In a news release, the company said that due to the peak season they expect “a typical ramp up in the B2C e-commerce shipments in the fourth quarter.”
The various divisions are expected to still deliver quality services despite expected shipment volumes.
The Supply Chain plans to use almost 500 additional robots and some 5,000 temporary workers, while Post & Parcel will hire 10,000 temporary staff. In Germany alone, the division expects to deliver more than 11 million parcels daily at peak times.
By end-September, the seasonal acceleration of e-commerce deliveries to consumers was expected to materialize. Business-to-business volumes, however, were still characterized by weak economic dynamics.
Expectations of the Board of Management are that DHL will benefit from a seasonal increase of B2C volumes until yearend. However, there is little proof of better B2B and mail volumes will take place.
In the air freight forwarding business, margins are below expectations.
The Board, therefore, decided to adjust earnings before interest and taxes downwards to 5.8 billion euros. Capital expenditures for the year have been reset to between 3 billion 3.2 billion euros (from 3 to 3.6 billion)
DHL’s Express division saw revenue and earnings growth in the third quarter, as did Global Forwarding, Freight.
Air and ocean freight volumes rose, notably on the routes from Asia.
The Supply Chain division was also a bright spot, achieving significant growth in both revenue and earnings. This was spurred by renewals, contract signings, and the growing e-commerce business.
A significant proportion of new business was generated by the Energy, Retail, Life Sciences & Healthcare, and E-fulfillment solutions.
The youngest DHL division — eCommerce — continued to benefit from the structural e-Commerce trend.
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