Deutsche Post, the owner of DHL, saw its shares drop by around 6 percent in morning trading in Germany following the announcement of its disappointing quarterly profits and revenues. However, the firm held its dividend steady and decided to enhance its share buyback program by an extra €1 billion.
DHL issued a prediction for its 2024 EBIT – a significant earnings measure – stating its expectation for medium-term operating profit growth. It speculates an EBIT between €6.0 billion and €6.6 billion for 2024, compared to the €6.3 billion recorded in fiscal 2023.
Looking further ahead, DHL predicts a medium-term working result of €7.5 billion to €8.5 billion for 2026. Tobias Meyer, DHL Group's CEO, remarked that despite a weak global economy and international trade in 2023, the group met its targets for the year. Predicting more volatility and geopolitical crises from 2024 ahead, he stated the company's readiness to face the opportunities and challenges of the new year.
Shareholders will be offered a dividend of €1.85 per share, the same as the previous year, at the Annual General Meeting scheduled for May 3. The board has extended its existing share buyback scheme until 2025, increasing the volume from €3 billion to €4 billion.
The last quarter witnessed a drop in consolidated net profit by 26.5% to €981 million from €1.34 billion the previous year. Earnings per share also dipped 25.7% from €1.09 to €0.81. There was a 14.6% reduction in EBIT to €1.64 billion, and a 10.2% drop in revenue to €21.35 billion.
Express revenues decreased by 6.7% to €6.56 billion, and Global Forwarding, Freight revenues plummeted by 33% to €4.57 billion. Meanwhile, Supply Chain revenues stayed flat compared to the previous year, but eCommerce grew by 7.6% and Post & Parcel Germany increased by 2.5%.
In German trading, Deutsche Post's shares were listed at €39.35, down by 5.62%.
