DHL Group reports revenues of €20.6 billion in the second quarter

DHL Group, the world’s leading logistics company, met market expectations in the second quarter of 2024. Despite a persistently weak economic environment, the group’s revenues were slightly higher compared to last year, amounting to €20.6 billion (in the same period last year, their revenue was €20.1 billion). As expected, the operating profit (EBIT) was below last year’s level of €1.35 billion (it amounted to €1.7 billion).

However, a comparison with the operating profit (EBIT) in the pre-pandemic year of 2019 (second quarter of 2019: €769 million) shows that DHL Group has structurally improved profitability.

– The volume of air and sea freight transport further improved in the second quarter, given the low starting level. However, a comprehensive recovery of global trade is still not in sight. Modest progress is observed in the volume of business with companies in the DHL Express branch, but this is not yet a significant acceleration. Accordingly, we are still not utilizing the DHL Express network optimally. However, due to balanced cost and capacity management, the company is in good shape even in a weak economic environment. And thanks to its unique logistics portfolio, we are well prepared for the recovery of global trade – said Melanie Kreis, Chief Financial Officer of DHL Group.

Emphasis on preserving earnings and investing in growth trends

Gross capital expenditures (capex) amounted to €633 million in the second quarter. Considering global economic parameters, DHL Group continues to emphasize preserving earnings and cash flow and directs capital expenditures towards drivers of structural growth, omnishoring, e-commerce, sustainability, and digitalization. Free cash flow amounted to €344 million.

DHL Group achieved a consolidated net profit after non-controlling interests of €744 million in the second quarter of 2024, while last year in the same period it amounted to €978 million. The basic earnings per share were €0.64 compared to €0.82 in the second quarter of 2023. By a decision of the management board on May 2, 2024, the company’s share capital was reduced by €39 million through the withdrawal of 39,059,409 treasury shares. The company’s share capital now comprises 1,200,000,000 shares with no nominal value (ordinary shares).

Group confirms forecast for 2024.

Globally, the economy moved in line with DHL Group’s expectations in the first half of 2024: comprehensive and dynamic economic growth was absent. In the second half of the year, DHL Group expects typical positive effects after the peak season. In combination with ongoing revenues and cost management, the group is confident that it is on the right track to achieve its goals for the financial year 2024.

The group confirms, they stated, their forecast for the financial year 2024. They predict EBIT between €6 billion and €6.6 billion and free cash flow without net mergers and acquisitions of around €3 billion. In the medium-term forecast for 2026, DHL Group still expects operating profit between €7.5 billion and €8.5 billion.