$DHL (+1.11%) has delivered a solid picture overall with its latest quarterly figures and surprised positively, particularly on the earnings side.
- Sales (expected): EUR 20.67 billion
- Turnover (reported): EUR 20.40 billion
- EPS (expected): EUR 0.68
- EPS (reported): EUR 0.73
The key point in the quarter is the operating performance. EBIT rose by around 8 % to around EUR 1.5 billion, also exceeding expectations. The main driver was the strong express business, which benefited from global supply chain shifts and rising demand for fast transportation solutions. At the same time, the figures show that the cost-cutting programmes and efficiency measures introduced are taking effect and stabilizing margins.
However, the sales trend is less positive. On a reported basis, revenue declined slightly, mainly due to currency effects and weaker freight rates. In addition, the traditional mail business remains under structural pressure, while parts of the e-commerce segment have also been weaker recently.
On the other hand, free cash flow is a clear plus point, having risen significantly to around € 1.2 billion, underlining the Group's financial strength. At the same time, the management confirms the outlook for the year as a whole (EBIT > € 6.2 billion), which provides additional stability.
The decisive factor for me in the coming quarters will be whether $DHL (+1.11%) development in the Express segment can be maintained, as this is where the majority of profitability is currently generated. Equally important for me is the development of freight rates and global trade flows, which are strongly influenced by geopolitical factors. I will also continue to monitor the cost program and margin development, as these currently represent the greatest leverage for earnings development.
Analyst reactions are predominantly positive. Many are talking about a better quarter than originally expected. At the same time, however, they continue to point to the existing risks due to geopolitical uncertainties and the weaker sales trend.
~ No filing advice ~
