DHL 2023 consolidated net profit down 31%

DHL Group reported a 13 percent decline in revenue at €81.8 billion for financial year 2023 and an operating result (EBIT) of €6.3 billion (2022: €8.4 billion), down 25 percent.

Consolidated net profit, after non-controlling interests, declined 31 percent to €3.7 billion in 2023 (2022: €5.4 billion).

"At €3.3 billion (2022: €4.6 billion), free cash flow excluding net M&A was significantly above the 2023 forecast of €3 billion. With EBIT and free cash flow well above the figures for the pre-pandemic year 2019, the Group demonstrated its increased earning capacity even in a persistently soft market environment," says an official release.

Tobias Meyer, CEO, DHL Group says: "The year 2023 was characterised by a weak global economy, and, above all, weak global trade. Even under these conditions, we achieved our targets for the year. Our high profitability allows us to continuously invest in our network, sustainability, digitalisation and our e-commerce capabilities and to further improve quality for our customers. Major uncertainty factors such as volatility in demand and geopolitical crises will remain with us in 2024. However, we are very well positioned for the opportunities and challenges of 2024."

The existing share buyback programme (2022 to 2024) will be extended until 2025, and the volume increased by €1 billion to €4 billion. Shares with a total value of €925 million were purchased in the reporting year, the release added.

Express revenue declined 10 percent to €24.8 billion and EBIT was down 20 percent to €3 billion. "As a result of the continuing weak market conditions, daily time-definite international (TDI) shipment volumes fell by 2.5 percent. Significant negative currency effects amounting to €1.2 billion and lower fuel surcharges had a negative impact on the business of DHL Express."

Global forwarding revenue dropped 36 percent to €19 billion and EBIT was down 38 percent to €1.4 billion. "Market volumes at DHL Global Forwarding, Freight were down compared to the previous year due to weak demand but stabilised over the course of the year. As expected, air and ocean freight rates continued to normalise. In the European road freight market, the cyclical decline in demand continued. Costs remained at a high level due partly to increased diesel and vehicle prices as well as staff costs."

E-commerce revenue increased three percent to €6.3 billion but EBIT declined 25 percent to €292 million. "The structural trend in e-commerce remains intact with volumes well above pre-pandemic levels in 2019. Excluding negative currency effects of €174 million, revenues were up 5.6 percent compared to the previous year. Higher costs and continuous investment in the expansion of the networks were the main factors contributing to the EBIT development."

2024 outlook
For the financial year of 2024, DHL Group forecasts EBIT between €6-6.6 billion and free cash flow excluding net M&A of approximately €3 billion. In its medium-term forecast for 2026, DHL Group anticipates an operating result of €7.5-8.5 billion.