DHL 2024 revenue up 3%, operating profit declines 7%

DHL reported a three percent increase in revenue at €84.2 billion for 2024 of which €62.5 billion was international revenue.

Operating profit (EBIT) declined seven percent to €5.9 billion but well above the pre-pandemic level of 2019 (€4.1 billion), says an official release.

Revenue increased 6.4 percent to €22.7 billion in the fourth quarter and EBIT rose 12.9 percent to €1.9 billion in the same period, the release added.

"We increased our revenue in 2024 despite the challenging environment," says Tobias Meyer, CEO, DHL Group. "In a strong fourth quarter with good service quality for our customers, we achieved substantial revenue and earnings growth. We expect the global political and economic situation to remain volatile in 2025. However, we want to continue growing in this environment and are focusing on the measures we can control. We are actively increasing our efficiency and accelerating our sustainable growth ambitions with our Group cost programme Fit for Growth."

Overall, DHL Group generated consolidated net profit after non-controlling interests of €3.3 billion in 2024 (2023: €3.7 billion).

The Board of Management has decided to increase the Group's share buyback programme, which was launched in 2022, by €2 billion to up to €6 billion and to extend it until 2026.

"DHL Group is an attractive investment for shareholders," says Melanie Kreis, CFO, DHL Group. "We have a strong balance sheet and high financial performance. We expect to return to earnings growth in 2025 and are actively supporting this process with our Fit for Growth programme and targeted investments in future growth markets."

Express revenue up marginally
Express revenue increased marginally (1.2 percent) to €25.1 billion while EBIT was down five percent at €3 billion.

"Express countered the declining volumes with ongoing yield discipline, productivity improvements and capacity management. The division increasingly focused on higher-value B2B shipments, particularly on the transpacific trade lane. The division was able to convert the peak season into significant earnings growth in the fourth quarter of 2024 (+42.9 percent YoY). This was partly due to the peak season demand surcharge, which was introduced for the first time in 2024."

Global Forwarding, Freight: Increased revenue due to higher volumes, rates
Global Forwarding, Freight division reported revenue of €19.6 billion, up 1.8 percent and EBIT of €1 billion, down 24 percent.

"In 2024, the global freight forwarding market was characterised by capacity bottlenecks as a result of freight detours due to the crisis in the Red Sea as well as ongoing geopolitical conflicts. Given higher demand - especially in e-commerce - and limited capacities, air and ocean freight rates rose over the course of 2024. In the European road freight market, the decline in demand continued in the reporting year and did not recover even in months when volumes are usually high for seasonal reasons."

Supply Chain revenue up 4%
Revenue in Supply Chain grew 4.3 percent in 2024 to €17.7 billion and EBIT increased 11 percent to €1 billion. "The increase in revenue was supported by new business, a high proportion of contract renewals and the growing e-commerce business. In addition to revenue growth, productivity increases through digitalisation and standardisation contributed to the improvement in earnings."

ECommerce revenue up 10%
eCommerce recorded year-on-year volume growth in almost all markets and achieved revenue growth of 10.2 percent at €7 billion. EBIT, however, was down three percent at €281 million. "The lower EBIT is primarily due to increased depreciation and amortisation as a result of continuous network expansion."

2025 guidance
DHL Group expects an operating result of >€6 billion and a free cash flow (excluding M&A) of € ~3 billion for the fiscal year 2025. The outlook does not cover potential impacts of changes in tariff or trade policies as such changes could have substantial negative but also positive effects for DHL Group, the release added.