DHL Group on the Right Track for a Successful 2024

The logistics company DHL Group has made a good start to the new fiscal year 2024. As expected, there was no significant growth in the global economy in the first quarter of 2024. Despite these conditions, the Group achieved revenue of 20.3 billion euros (first quarter 2023: 20.9 billion euros). As anticipated, the operating profit (EBIT) of 1.3 billion euros was below the level of the previous year (first quarter 2023: 1.6 billion euros), but exceeded the same period before the pandemic in 2019 (first quarter 2019: 1.2 billion euros).

– “We are in an unusually long phase of weak momentum in global trade. In this environment, we continue to focus on consistent capacity and cost management. However, we also see further growth potential. Demand for omnishoring and e-commerce solutions remains high, and our customers are increasingly aware of sustainable logistics – this is clearly reflected in the demand for GoGreen Plus. With our portfolio, we are ideally positioned to capitalize on the turnaround in global trade. Despite all the challenges, 2024 is a year of opportunity,” said Tobias Meyer, CEO of DHL Group.

Measures to Protect Earnings and Cash Flow are Effective

DHL Group had already anticipated a slowdown in global economic momentum in 2022 and successfully implemented appropriate measures to protect earnings and cash flow. These measures include consistent capacity and cost management, as well as price adjustments. In the first quarter of 2024, gross investments (capex) amounted to 483 million euros (first quarter 2023: 569 million euros).

The Group continued to invest strategically in the quality of its services and in structural growth trends such as omnishoring, e-commerce, sustainability, and digitalization. Free cash flow was 608 million euros (first quarter 2023: 983 million euros; first quarter 2019: -256 million euros).

Overall, DHL Group achieved a consolidated net profit after non-controlling interests of 743 million euros in the first three months of 2024 (first quarter 2023: 911 million euros). In the same period, the basic earnings per share amounted to 0.63 euros compared to 0.76 euros in the first quarter of 2023.

The Group Confirms Forecast for 2024

As expected, there was no broad and dynamic economic growth in the first three months of the year. DHL Group continues to expect a more positive global economic momentum in the second half of 2024. Overall, the Group confirms its forecast for the fiscal year 2024 and expects EBIT between 6.0 billion and 6.6 billion euros and free cash flow, excluding acquisitions and sales, of around 3.0 billion euros.

In the mid-term forecast for 2026, DHL Group continues to expect operating profit between 7.5 billion and 8.5 billion euros.

In DHL Express, the expected continued weak demand has led to a slight decline in shipment volumes. DHL Express is countering the sluggish market environment by improving productivity, optimizing the network, and effectively managing yields and costs.