DHL Q3 revenue up 6%, net profit down 7%

DHL Group reported a six percent increase in revenue at €20.6 billion for the third quarter of 2024 (Q32023: €19.4 billion) despite persistently muted market dynamics.  "Operating profit (EBIT) remained stable at €1.4 billion (Q32023: €1.4 billion) and was significantly above the pre-pandemic level (Q32019: €942 million)," says an official release.

Tobias Meyer, CEO, DHL Group says: "The weak momentum of global trade was a recurring theme throughout the first nine months of 2024. Nevertheless, we significantly increased revenue in the third quarter and initiated a turnaround in EBIT compared to the prior-year quarter. Now it is crucial to provide our customers with the expected high quality during the peak season and to deliver corresponding profitability."

DHL Group generated consolidated net profit after non-controlling interests of €751 million in the third quarter of 2024 (Q32023:€807 million), down seven percent.

In the first nine months of 2024, the Group generated revenue of €61.5 billion (9M2023:€60.4 billion) and operating profit of €4 billion (9M2023: €4.7 billion), the release added.

The Express division recorded three percent revenue and earnings growth at €6.1 billion and €686 million, respectively. "In view of the continued low market momentum, daily TDI shipment volumes fell 5.9 percent in the third quarter while daily TDI revenue remained at the previous year’s level. The division continues to counter this development with effective yield and cost management and the optimization of network capacity." Revenue at Global Forwarding, Freight increased 14 percent to €5 billion due to higher volumes and ocean freight rates "while operating profit declined (nine percent) due to the margin trend. Air and ocean freight volumes increased, particularly on the routes from Asia."

The youngest Group division, eCommerce, continues to benefit from the structural e-commerce trend, the release added. Revenue increased significantly in the third quarter (11 percent at €1.6 billion) but EBIT was down nine percent at €50 million, "partly due to increased depreciation because of continuous investment in network expansion. eCommerce continues to make targeted investments in network expansion and service quality in structural growth markets." Revenue increased two percent to €4 billion as parcel volumes grew (+5.4 percent year-on-year) while the German postal business declined, the release added. DHL Group has adjusted the EBIT guidance to >€5.8 billion (previously €6-6.6 billion) due to weak economic dynamics in B2B volumes and air freight forwarding margins as well as an accelerated decline in letter volumes, the release added.

"The Board has also revised the guidance for the medium-term growth of Group EBIT to >€7 billion in 2026 (previously €7.5-8.5 billion)."