Deutsche Post DHL Group posts record earnings; 2020 operating profit at 17.4%
German logistics giant Deutsche Post DHL Group posted a record in the past financial year despite significant challenges.
German logistics giant Deutsche Post DHL Group posted a record in the past financial year despite significant challenges. The company’s 2020 operating profit hit about EUR 4.8 billion, up 17.4 per cent.
Commenting on the results, CEO Frank Appel said: “This success didn't come from nowhere. It is the result of years of hard work by our entire organization.”
DPDHL also forecast about EUR 5.6 billion in 2021 operating profit, slightly above the preliminary forecast in January. DPDHL, which traditionally delivers rolling three-year forecasts, predicted that 2023 operating profit will exceed EUR 6 billion. DHL measures operating profit by earnings before interest and taxes (EBIT).
This growth was primarily driven by the global e-commerce boom, which led to considerably higher shipment volumes in the parcel and express business. Operating profit (EBIT) improved by 17.4 percent in 2020 to more than EUR 4.8 billion. The group thus significantly exceeded its previously adjusted earnings target of EUR 4.1 to EUR 4.4 billion. Adjusted for one-off effects, the underlying EBIT was even more than EUR 5.4 billion.
The company also initiated upto EUR 1 billion share repurchase program and raised its annual dividend to EUR 1.35 per share. The company’s employee strength has grown by 20,000 to 570,000 worldwide.