Deutsche Post DHL Group Q2 revenue up 23%
Net profit increased 13% to €1.5 billion ($1.53bn), confirms 2022 EBIT guidance of €8 billion ($8.2bn, +/- 5%).
Deutsche Post DHL Group reported a 23.4 percent increase in second quarter revenue at €24 billion ($24.5 billion) "on strong demand as a reliable logistics partner."
The Group reported operating profit (EBIT) of €2.3 billion compared to €2.1 billion in Q22021), an increase of 10 percent. "At 9.7 percent, the EBIT margin was slightly below the prior-year level (10.7 percent in Q22021," says an official release.
Net profit increased 13 percent to €1.5 billion ($1.53 billion).
"Thanks to the outstanding efforts of our employees we provide our customers with reliable logistics solutions also in volatile times," says Frank Appel, CEO, Deutsche Post DHL Group. "This strength is reflected in the excellent earnings performance and will continue to pay off in the future. Our customers appreciate logistics services more than ever before. Based on our strong international footprint coupled with the most modern infrastructure, we are able to offer reliable solutions in an increasingly complex environment across all sectors. We remain solid as a rock in uncertain times."
Operating cash flow in the second quarter 2022 came in at €2 billion ($2.4 billion) compared to €2.2 billion in Q22021 - a drop of 10 percent.
"We have significantly improved our financial strength through a strong operating performance in recent quarters," says CFO Melanie Kreis. "Greater financial flexibility prepares us for any scenario. Thanks to our strong balance sheet, we can proceed as planned with our targeted investments of around €12 billion by 2024. In doing so, we are creating the conditions for long-term growth beyond the significantly improved earnings level of recent quarters."
The Express division increased revenue by 17.5 percent to €7 billion despite lower volumes for international time-definite express (TDI) shipments. "Revenue growth was again based on an increase in higher-weight shipments, price measures and higher fuel surcharges. EBIT was down 6 percent year on year at €1.1 billion (€1.2 billion in Q22021). The EBIT margin remained strong at 15.7 percent compared to an exceptionally high margin of 19.8 percent in the prior-year period."
Global Forwarding, Freight more than doubled EBIT to €746 million (€312 million in Q22021. "The sustained price and margin dynamics in the international transport markets enabled a significant jump in revenue of 56 percent to €8.2 billion. "Air freight volumes decreased moderately in part due to modal shifts back towards ocean freight products as customers recognised the again improved schedule reliability in ocean freight. Ocean freight volumes grew by 11.3 percent, driven by the integration of the acquired beverage logistics company Hillebrand at the beginning of the second quarter. The EBIT margin improved significantly to 9.1 percent (6 percent in Q22021).
Supply Chain revenue was up 23 percent to €4.1 billion, and EBIT improved by 23.2 percent to €244 million.
E-Commerce Solutions revenue 5% at €1.5 billion. "Price adjustments more than compensated for the decline in shipment volumes."
2022 outlook confirmed
The Group has confirmed its 2022 EBIT guidance of €8 billion ($8.2 billion, +/- 5 percent) "even in consideration of a possible global economic downturn in the second half of 2022. With an EBIT of €4.5 billion ($4.7 billion) achieved in H1 2022, the Group has a strong basis for delivering on this."