Overall, DHL Group generated consolidated net profit after non-controlling interests of EUR 751 million in the third quarter of 2024 (Q3 2023: EUR 807 million). In the same period, basic earnings per share amounted to EUR 0.64, compared with EUR 0.68 in the third quarter of 2023.
In the first nine months of 2024, the Group generated revenue of EUR 61.5 billion (9M 2023: EUR 60.4 billion), which was up slightly compared to the same period of the previous year. At EUR 4.0 billion, operating profit developed in line with expectations (9M 2023: EUR 4.7 billion).
Typical increase in B2C shipment volumes due to peak season
Due to peak season, DHL Group expects a typical ramp up in the B2C e-commerce shipments (Business- to-Consumer) in the fourth quarter. The Group’s divisions are prepared to offer high quality services despite the expected shipment volumes. For example, Express is deploying additional Boeing 777 cargo aircraft on the important routes between Asia and Europe. Supply Chain plans to use almost 500 additional robots and around 5,000 temporary workers. The team at Post & Parcel will be reinforced by around 10,000 temporary staff. In Germany, the division expects to deliver over 11 million parcels per day at peak times.
Guidance adjusted due to weak economic dynamics in B2B volumes and a significant decline in letter volumes
In the domestic parcel businesses, the seasonal acceleration of e-commerce deliveries to consumers appears to materialize as expected from the end of September. However, B2B volumes (Business-to-Business) continue to be characterized by weak economic dynamics. The accelerated structural decline in letter business, with its high fixed costs, had a high impact in the third quarter.
The Board of Management continues to expect that the Group will benefit from a seasonal increase in B2C shipment volumes until the end of the year. However, based on the trading in October, there is currently no indication of a better development for B2B and mail volumes. Also, in the air freight forwarding business, margins are below expectations despite some seasonal acceleration of volumes.
Therefore, the Board of Management has decided to adjust the Group EBIT guidance for the year 2024 to >EUR 5.8 billion (previously: EUR 6.0 to 6.6 billion). The DHL divisions are expected to contribute >EUR 5.5 billion (previously: >EUR 5.7 billion), and the Post & Parcel Germany division ~EUR 0.8 billion (previously: >EUR 0.8 billion).
In line with market developments, the Group has also reduced the expected capital expenditure (excl. leases) for the full year 2024 to EUR 3.0 to 3.2 billion (previously: EUR 3.0 to 3.6 billion). The Group expects a continued high full year 2024 free cash flow (excl. Net M&A) of now EUR 2.8 to 3.0 billion (previously: ~EUR 3.0 billion).
Based on the adjusted expectations for 2024 and the weaker macroeconomic environment, particularly in Europe, the Board of Management has also revised the guidance for the medium-term growth of Group EBIT to >EUR 7.0 billion in 2026 (previously EUR 7.5 to 8.5 billion). Expectations for investments and free cash flow remain unchanged in the cumulative ranges for 2024 to 2026.
