DHL Group meets market expectations in the second quarter

 DHL Group 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.

Source: DHL Group