Deutsche Post DHL Group publishes preliminary quarterly results and will raise outlook based on continued strong earnings
The positive development of the Group's businesses seen in the first half of the year has continued well through the third quarter 2021.
- Group EBIT was up around 28% to EUR 1.765 billion in third quarter 2021, driven by a significant jump in earnings of the DHL divisions
- Short and mid-term outlook will be increased on November, 4
- CEO Frank Appel: "After a strong performance in the first nine months of this year, we are intensively preparing ourselves for potential record breaking shipment volumes in the coming weeks."
Bonn - Deutsche Post DHL Group has today released preliminary results for the third quarter of 2021. The Group's EBIT reached around EUR 1.765 billion in the third quarter 2021 (Q3 2020: EUR 1.377 billion), bringing the EBIT of the first nine months of 2021 to around EUR 5.760 billion. This includes a one-off effect of EUR -179 million for the second Covid-19 bonus (Q3 2020: EUR -163 million), which will be paid in the fourth quarter. Against the backdrop of the excellent business development, the Group will revise upward its outlook for EBIT and free cash flow for FY 2021. In addition, the mid-term guidance for FY 2023 will be increased on November 4, 2021.
"In the first nine months of the current year, we have already exceeded previous year's full-year result. Global trade accelerated significantly compared to the previous year. At the same time, shipment volumes in e-commerce remained high. Therefore we are optimistic for the oncoming peak season", said Frank Appel, CEO of Deutsche Post DHL Group. "We are now intensively preparing ourselves for potential record breaking shipment volumes in the coming weeks and have deliberately built up capacity in the third quarter, in order to be able to offer our customers continued high quality service."
DHL divisions achieved a significant jump in earnings
The positive development of the Group's businesses seen in the first half of the year has continued well through the third quarter 2021. All DHL divisions significantly exceeded the previous year's results. Volume trends in the past quarter confirm base assumptions with continued well supported B2B recovery and B2C volumes staying at high previous year levels across all major networks. At the same time the tight capacity situation both in Ocean and Air Freight markets continued.
Express: EBIT in the Express division reached around EUR 970 million in the third quarter 2021 compared to EUR 753 million in the previous year's quarter.
Global Forwarding, Freight: EBIT in Global Forwarding, Freight stood at around EUR 370 million in the third quarter 2021, also clearly ahead of previous year's result of EUR 155 million.
Supply Chain: EBIT at Supply Chain came in at around EUR 140 million in the third quarter 2021, significantly above last year's third quarter result which stood at EUR 112 million.
eCommerce Solutions: eCommerce Solutions recorded EBIT of around EUR 90 million in the third quarter 2021, significantly above last year's third quarter result which stood at EUR 76 million.
Post & Parcel Germany: EBIT in Post & Parcel Germany in the third quarter 2021 was around EUR 300 million (Q3 2020: EUR 320 million).
The continued positive business development is underpinned by a continued equally strong development of cash flow; free cash flow in the third quarter 2021 amounted to more than EUR 1.0 billion (Q3 2020: EUR 1.264 billion). For the first nine months of 2021 free cash flow stands at more than EUR 3.1 billion and significantly exceeds the previous year result (9M 2020: EUR 1.460 billion).
Earnings and FCF outlook will be revised upwards based on dynamic business performance
In light of the continued positive earnings momentum also in the third quarter 2021, management will raise guidance for FY 2021 Group EBIT and FCF, driven by the strong development in the DHL divisions. Also, the mid-term guidance for FY 2023 will be subject to upward revision.
The comprehensive disclosure for third quarter 2021 will be published as planned on November 4, 2021.