DHL Q3 2024 $DHL (+1.33%)
Financial Performance
Revenue: In the third quarter of 2024, revenue increased by 6.2% compared to the previous year and reached EUR 20.592 million.
EBIT: EBIT remained stable at 1.373 million euros and showed no significant changes compared to the previous year.
Net profitConsolidated net profit fell to EUR 811 million in the third quarter of 2024, compared to EUR 847 million in the third quarter of 2023.
Balance sheet summary
AssetsTotal assets amounted to EUR 66.867 million as at September 30, 2024, up slightly from EUR 66.830 million at the end of 2023.
Shareholders' equityEquity decreased to EUR 22.612 million, compared to EUR 22.888 million in the previous year.
Overview of income
Operating profitProfit from operating activities (EBIT) for the first nine months of 2024 amounted to EUR 4.035 million, down on the EUR 4.703 million in the same period of 2023.
Earnings per shareBasic earnings per share amounted to EUR 1.91 in the first nine months of 2024, compared to EUR 2.26 in the previous year.
Cash flow overview
Operating cash flowNet cash inflow from operating activities amounted to EUR 2.043 million in the third quarter of 2024, compared to EUR 2.534 million in the third quarter of 2023.
Free cash flowFree cash flow in the third quarter of 2024 amounted to EUR 723 million, a decrease compared to EUR 1.074 million in the previous year.
Key figures and profitability ratios
Return on sales: The return on sales in the third quarter of 2024 was 6.7%, down slightly on 7.1% in the previous year.
ROIC: The Group's ROIC (excluding leases and goodwill) amounted to 41.8% for the 2023 financial year.
Segment information
Express division: Sales increased by 3.0% to EUR 6.063 million in the third quarter of 2024, with an EBIT margin of 11.3
Global Forwarding, Freight: EBIT fell by 9% year-on-year to 277 million euros.
Supply Chain: EBIT increased by 13 % to 274 million euros.
Competitive position
In the Express division, the company remains strongly focused on earnings and cost management in order to counteract market volatility.
Forecasts and management comments
EBIT forecast 2024EBIT forecast has been revised to over 5.8 billion euros, previously the target range was 6.0-6.6 billion euros.
Free cash flow forecast: Free cash flow for the 2024 financial year is now estimated at EUR 2.8-3.0 billion.
Risks and opportunities
Risks: Continued weak macroeconomic momentum, particularly in Europe, as well as challenges in the air freight market.
OpportunitiesStrong free cash flow generation, which supports both shareholder returns and targeted growth investments.
Summary of results
DHL Group's Q3 results show a stable EBIT despite a challenging macroeconomic environment, especially in Europe. Revenue growth was mainly driven by the Supply Chain and Express divisions, while Global Forwarding, Freight was under pressure. The company has adjusted its EBIT and free cash flow forecasts for 2024, reflecting the subdued market conditions. Management continues to focus on cost and revenue management with a strategic focus on sustainable growth and capital allocation as part of Strategy 2030.
Positive aspects
Revenue growthDHL Group recorded year-on-year revenue growth of 6.2% in the third quarter of 2024, reaching EUR 20,592 million. This development was largely supported by strong results in the Supply Chain and Express divisions.
High-performance Supply Chain divisionThe Supply Chain division increased EBIT by 13.2% to 274 million euros and achieved a solid EBIT margin of 6.2%. This positive development is attributable to new and extended contracts as well as continued growth in e-commerce.
Growth in the parcel business: The Parcel Germany business unit achieved year-on-year revenue growth of 9.1% in the third quarter of 2024, indicating high demand in the e-commerce sector.
Improvement in EBIT of the Express divisionEBIT in the Express division increased by 2.8% to 686 million euros, with a stable EBIT margin of 11.3%. This result was achieved through successful yield and cost management.
Strong free cash flow generationDespite economic challenges, the company was able to maintain strong free cash flow generation, which supports the distribution to shareholders and targeted growth investments.
Negative aspects
Decline in net profitNet profit attributable to DPAG shareholders decreased by 6.9% to 751 million euros in the third quarter of 2024. This decline reflects the ongoing challenges in the macroeconomic environment.
EBIT decline in the Global Forwarding, Freight divisionGlobal Forwarding, Freight division recorded a decline in EBIT of 9.5% to EUR 277 million, which is attributable to the pressure on margins due to higher purchase prices in the air freight sector.
Declining mail volumesThe Post & Parcel Germany division recorded a 13 % decline in letter volumes compared to the previous year, which could not be fully compensated for by growth in the parcel sector.
Adjusted EBIT forecast: Due to weaker macroeconomic conditions, the company lowered its EBIT forecast for 2024 to more than 5.8 billion euros, compared to the previous target range of 6.0 to 6.6 billion euros.
Decrease in cash and cash equivalentsCash and cash equivalents decreased significantly to EUR 2,690 million at the end of the reporting period, compared to EUR 3,906 million at the beginning of the year, indicating potential liquidity challenges.
