Deutsche Post DHL Group Meets 2019 Earnings Target And Addresses Impact Of Coronavirus

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Deutsche Post DHL Group today announced that its 2020 earnings guidance is, as of now, excluding any effect induced by the Coronavirus. Since the Chinese government introduced measures to contain the Coronavirus, DPDHL Group has been consistently monitoring the volume development in its networks. In recent weeks, trade volumes have weakened, not only on the inbound and outbound China trade lanes but also in other countries of Asia; constraints on industrial production are increasingly expected also outside of China.

The Group had seen a very good start into 2020 in January and was prepared for the usual effects around Chinese New Year in February when the measures of the Chinese government were introduced. Since then the business development in Post & Parcel Germany as well as in DHL Supply Chain and DHL eCommerce Solutions has only been marginally impacted by the Corona crisis. In contrast, the Group currently sees more significant effects for the DHL Express and DHL Global Forwarding divisions, where the business is particularly affected with regards to cross-border trade flows into and out of China. Group-wide the negative impacts of the Corona crisis on Group EBIT amount to around EUR 60-70 million for the month of February, compared to the initial internal planning.

Implications for the Group results for full-year 2020 cannot be currently concretely assessed. Should the macroeconomic situation normalize again, there could also be positive effects for logistics companies. In case of longer duration or a worsening of the current situation over the coming months, the negative impacts for the Group are likely to outweigh the positives. The concrete earnings impact can only be assessed after the normalization of the situation.

“Deutsche Post DHL Group had the very good year 2019 and a successful start to 2020 in January. Thanks to our broad geographic set-up and our comprehensive portfolio we are more resilient than other companies. However, a worldwide crisis like the Coronavirus does not leave us unaffected. It is currently hard to judge how strong the impact on our business will be. That is why our guidance is as of now excluding any impact of this”, said CEO Frank Appel.

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Also against the background of the global economic uncertainties, the Group decided to not further actively pursue the current exploratory talks regarding partnership options for the StreetScooter activities. Instead, StreetScooter will concentrate on the operation of the current fleet of e-vehicles.

“Thanks to our StreetScooter we have one of the biggest electric delivery fleets in the world and have made a significant contribution to the development of e-mobility. We have always said that we do not want to be a car manufacturer. Further scaling of the business without the right partner does not fit our long-term strategic goals. Independent from the decision today, we will further foster the transition of our fleet towards e-mobility”, said Frank Appel. “We are committed to our Mission 2050, which means zero-emission logistics by 2050.”

Basically, eMobility is only one of the many levers for the company to make logistics more efficient and thus more sustainable. The Group is, therefore, working intensively on various levers, such as the involvement in the production of alternative fuels, the optimization of its routes and energy efficiency in its buildings.

Read Also:  DHL Global Forwarding invests 126.5 million rand in new facility in South Africa

The refocusing of StreetScooter – a change outside of the company’s core businesses – is expected to result in one-off charges of EUR 300-400 million for the current financial year. The impact on the cash flow, however, will be limited.

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The 2020 guidance for a Group EBIT of more than EUR 5.0 billion is hence as of now excluding any still to be quantified effect induced by Corona implications, as well as the above-mentioned charges related to the decision on StreetScooter. 2022 guidance for a Group EBIT of minimum EUR 5.3 billion is not at all affected by this.

As the guidance update is taking an advance on the publication of 2019 full-year results planned for March 10th, the Group also publishes the following key numbers of the preliminary closure of FY2019 accounts:

Deutsche Post DHL Group continued to post profitable growth during the past financial year. Group revenue was up 2.9% year on year to EUR 63.3 billion, with all five divisions contributing to this positive performance.

The Group’s operating profit (EBIT) improved significantly (+30.6%) compared with the previous year in which earnings were impacted by one-time effects. Group EBIT reached EUR 4.13 billion, which is well within the range of EUR 4.0 to 4.3 billion targeted for 2019 by Deutsche Post DHL Group. The Post & Parcel Germany division contributed EUR 1.23 billion to earnings (forecast: EUR 1.1 to 1.3 billion). The DHL divisions generated total EBIT of EUR 3.4 billion (forecast: EUR 3.4 to 3.5 billion). EUR 2.039 billion of which are attributable to the Express division, EUR 521 million to Global Forwarding Freight and EUR 912 million to Supply Chain. The division eCommerce Solutions recorded a result of EUR -51 million, while the result for Corporate Functions came in at EUR -523 million.

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„We have reached record earnings in 2019 despite the challenging macroeconomic environment. All divisions continued to grow, and we took a big step forward with regards to our profitability”, said Frank Appel.

Deutsche Post DHL Group continued to invest heavily in profitable growth in the past financial year, spending a total of EUR 3.6 billion across all divisions – approximately EUR 1 billion more than in the prior year. This includes EUR 1.1 billion for the debt-financed renewal of the Express division’s aircraft fleet. The new machines are 18 percent more efficient and thus also contribute to the group’s sustainability goals.

Despite higher Capex spending, cash flow performed very well in the past financial year. Free cash flow was EUR 867 million, well above the figure of more than EUR 500 million projected for 2019. The Group had anticipated lower cash inflows in 2019 (previous year: EUR 1.1 billion) due to higher cash outflows for revamping the aircraft fleet at Express.

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Deutsche Post DHL Group Meets 2019 Earnings Target And Addresses Impact Of Coronavirus - Brand SpurDeutsche Post DHL Group Meets 2019 Earnings Target And Addresses Impact Of Coronavirus - Brand Spur
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Deutsche Post DHL Group Meets 2019 Earnings Target And Addresses Impact Of Coronavirus - Brand SpurDeutsche Post DHL Group Meets 2019 Earnings Target And Addresses Impact Of Coronavirus - Brand Spur

Latest News

Strongest first quarter ever: Preliminary results of Deutsche Post DHL Group above market expectations

  • All divisions significantly increased EBIT in first quarter 2021; Group EBIT tripled to around EUR 1.9 billion
  • Free cash flow development continued positive trajectory and improved by more than EUR 1.4 billion to around EUR 1.0 billion
  • CEO Frank Appel: "The start into the new financial year was more dynamic than ever"


SINGAPORE - Media OutReach - 12 April 2021 - Deutsche Post DHL Group has today released preliminary results for the first quarter of 2021 and has raised the outlook for the current financial year. Preliminary operating profit (EBIT) for the first three months improved to around EUR 1.9 billion (Q1 2020: EUR 592 million). The positive development of the group's businesses seen in the fourth quarter 2020 has continued well through the first quarter 2021. In the first three months of the year the B2C shipment volumes remained high in all networks while the recovery in the B2B business continued.

"The start to the new financial year was more dynamic than ever. It proves that we have successfully geared our business to the right growth drivers. One year into the pandemic we experienced in the first quarter 2021 a sustained momentum in e-commerce and a significant stabilization in global trade with increasing air- and sea-freight volumes. Consequently all divisions reported a significant jump in earnings above market expectations. Global trade continues to recover and vaccine distribution is in full swing which makes me very optimistic for the rest of 2021 and beyond," said Frank Appel, CEO of Deutsche Post DHL Group.

All divisions optimally positioned for continuing e-commerce boom and growth in global trade

Express: The division reached an EBIT of around EUR 955 million in the first quarter 2021 compared to EUR 393 million in Q1 2020.

Global Forwarding, Freight: EBIT in Global Forwarding, Freight stood at around EUR 215 million in Q1 2021, clearly above previous year's Q1 of EUR 73 million.

Supply Chain: EBIT at Supply Chain came in at around EUR 165 million in the first quarter 2021 compared to EUR 105 million in Q1 2020.

eCommerce Solutions: eCommerce Solutions recorded a first quarter 2021 EBIT of around EUR 115 million, clearly above last year's Q1 result of EUR 6 million.

Post & Parcel Germany: EBIT in Post & Parcel Germany in Q1 2021 was around EUR 555 million (Q1 2020: EUR 334 million).

Earnings momentum mirrored in positive cash flow development and improved outlook


The continued positive business development is underpinned by a strong cash flow development; free cash flow amounted to around EUR 1.0 billion in the first quarter 2021. In Q1 2020 this figure was still negative at EUR -409 million.

In light of the strong earnings momentum, guidance for 2021 is adjusted as follows:

Group EBIT for 2021 is now expected to be significantly above EUR 5.6 billion (previous forecast: more than EUR 5.6 billion). Equally, the result for the DHL divisions is now seen significantly above EUR 4.5 billion (previous forecast: more than EUR 4.5 billion). EBIT for the Post & Parcel Germany division is no longer expected at around EUR 1.6 billion but above EUR 1.6 billion. The expectation of a Group Functions EBIT of around EUR -0.4 billion remains unchanged. Full year 2021 Free Cash Flow is now expected to be significantly above EUR 2.3 billion (previous forecast: around EUR 2.3 billion).

The Group will introduce a revised detailed guidance with the comprehensive disclosure for Q1 2021 which will be published as planned on May 5, 2021.

Deutsche Post DHL Group

Deutsche Post DHL Group is the world's leading logistic company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees and investors worldwide. To this end, Deutsche Post DHL Group is focusing on growth in its profitable core logistics businesses and accelerating the digital transformation in all business divisions. The Group contributes to the world through sustainable business practices, corporate citizenship and environmental activities. By the year 2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.


Deutsche Post DHL Group is home to two strong brands: DHL offers a comprehensive range of parcel and international express service, freight transport, and supply chain management services, as well as e-commerce logistics solutions. Deutsche Post is Europe's leading postal and parcel service provider. Deutsche Post DHL Group employs approximately 570,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than 66 billion Euros in 2020.


The logistics company for the world.

Deutsche Post DHL Group Meets 2019 Earnings Target And Addresses Impact Of Coronavirus - Brand Spur
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