e-Commerce Fuels Successful Third Quarter for Deutsche Post DHL Group
Revenues up 4.4% y-o-y to $19.2 billion
Deutsche Post DHL Group, the world’s leading logistics company, saw strong growth in the third quarter of 2020.
In an economic climate dominated by COVID-19, the Group grew its revenue by 4.4% to $19.2 billion. Organic revenue – after adjusting for portfolio and currency effects – was up by an even 9%.
With its broad range of logistics services, Deutsche Post DHL Group has benefitted from the surge in global e-commerce activities.
The Group’s Post & Parcel Germany and DHL eCommerce Solutions divisions reported especially pronounced growth in shipment volumes.
Volumes also surged in the time-definite international Express business across all regions, which allowed the Group to utilize its network very well.
Deutsche Post DHL Group increased operating profit (EBIT) by approximately 50% compared with the prior year to EUR 1.4 billion.
With this, the Group confirmed its preliminary figures issued in October. The EBIT margin rose from 6.1% to 8.5%. The free cash flow increased by more than $885 million to around $1.65 billion compared with the prior year.
Frank Appel, CEO of Deutsche Post DHL Group said: “We had a successful third quarter and achieved improvements in revenue, EBIT and cash flow – thanks to our 550,000 employees worldwide and our outstanding portfolio of e-commerce logistics solutions benefitting both small and large customers globally.
"With our global services, we keep the world economy running even during the crisis. Every day, our employees perform exceptionally well under challenging conditions to provide our customers with the best possible service.”
The Express division increased third-quarter revenue by 14.6% year-on-year to approximately $5.8 billion. Operating profit rose by 65.9% over the prior-year level to reach a record $889 million – despite one-time special bonus expenses of $39 million.
This outstanding performance was driven by growth of 15.8% in the time-definite international Express shipments. Volumes were significantly higher in all regions of the world during the entire third quarter.
Revenue in the e-Commerce Solutions division increased by 26.1% in the third quarter to more than $1.4 billion.
The division’s operating profit also rose considerably to $90 million (2019: EUR 6 million) as a result of strong volume growth in the private consumer business in Europe and the Americas.
The realignment of the Group’s international parcel activities is paying off: In addition to the good revenue trend, improvements in cost management also led to efficiency increases.