DPDHL Group posts 2021 first quarter results, calls it strongest-ever
The global logistics giant Deutsche Post DHL Group has today released its preliminary results for the first quarter of 2021 noting that operating profit (EBIT) for the first three months improved to EUR 1.9 billion from EUR 592 million in Q1 2020 (220 per cent) and EUR 1.2 billion in Q1 2019 (58 per cent), calling it the strongest first-quarter result ever.
“The positive development of the group's businesses seen in the fourth quarter 2020 has continued well through the first quarter of 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,” says the release.
The group had posted a record operating profit of about EUR 4.8 billion for the financial year 2020.
Frank Appel, CEO of Deutsche Post DHL Group, said, "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 of 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.”
The Express division reached an EBIT of around EUR 955 million in the first quarter 2021 compared to EUR 393 million in Q1 2020.
EBIT in Global Forwarding, Freight stood at around EUR 215 million in Q1 2021, clearly above the previous year's Q1 of EUR 73 million.
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 recorded a first-quarter 2021 EBIT of around EUR 115 million, above last year's Q1 result of EUR 6 million.
EBIT in Post & Parcel Germany in Q1 2021 was around EUR 555 million (Q1 2020: EUR 334 million).
“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 of 2021. In Q1 2020 this figure was still negative at EUR -409 million, noted the release.
Updated guidance for 2021
Group EBIT for 2021 is now expected to be above EUR 5.6 billion (previous forecast: more than EUR 5.6 billion). Equally, the result for the DHL divisions is now seen 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 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.