📋 Tender Overview
Deutsche Post DHL Group the worlds leading logistics company continued its profitable growth trajectory in the third quarter of 2019. In the period from July to September the Group increased revenue by 4.7 year-on-year to EUR 15.6 billion. Operating profit improved from EUR 376 million to EUR 942 million with the prior-year figure being impacted by non-recurring expenses of EUR 392 million at Post Parcel Germany. All five divisions contributed to the Groups good revenue and earnings performance. The international express business and the German parcel business saw especially dynamic growth as e-commerce continued to boom.We had a very good third quarter. All five divisions performed well despite the challenging global economic environment. Thanks to our broad portfolio and the market-leading position of our divisions we are growing even in uncertain times said Frank Appel CEO of Deutsche Post DHL Group. For the fourth quarter we anticipate a traditionally strong holiday season and we reaffirm our guidance for the full year 2019.For the current financial year Deutsche Post DHL Group continues to expect to increase operating profit to between EUR 4.0 and EUR 4.3 billion. The Post Parcel Germany division is forecast to contribute between EUR 1.1 and EUR 1.3 billion of this amount. Earnings in the DHL divisions are expected to be at EUR 3.4 to EUR 3.5 billion. Deutsche Post DHL Group has confirmed both its guidance for 2020 and the Strategy 2025 targets announced in October for the period until 2022 which put Group EBIT at more than EUR 5.0 billion next year and at a minimum of EUR 5.3 billion in 2022. To achieve these targets the Group plans to push growth in its profitable core businesses and speed up the digital transformation as stated in its Strategy 2025.The improvement in operating profit boosted consolidated net profit after non-controlling interests from EUR 146 million in the prior year to EUR 561 million in the third quarter of 2019. Basic earnings per share improved accordingly rising from EUR 0.12 to EUR 0.45.Capital expenditure and cash flow two more Boeing 777 freighters commissioned for ExpressDeutsche Post DHL Group again made targeted investments in its core business during the third quarter to further strengthen its foundation for long-term profitable growth. The Group invested a total of EUR 854 million across all divisions 2018 EUR 827 million. For example the Group made further progress in extending its parcel infrastructure in Germany in addition to expanding global and regional hubs in the Express division and further renewing its intercontinental fleet. The Group spent EUR 245 million on this measure alone in the third quarter. After commissioning two Boeing 777 aircraft in the second quarter Express put another two of its 14 new freight aircraft of this type into service in the third quarter.The Group still plans to increase capital expenditure to approximately EUR 3.7 billion for full-year 2019 up from EUR 2.6 billion in 2018. This includes approximately EUR 1.1 billion for the 777 renewal of the intercontinental Express fleet.Free cash flow increased to EUR 507 million in the third quarter 2018 EUR 143 million despite the cash outflows for increased capital expenditure. The positive cash flow trend is evidence of the Groups good operating performance. The Groups new Strategy 2025 puts even more strategic focus on improving cash flow. Deutsche Post DHL Group therefore issued medium-term guidance for this KPI for the first time when announcing its Strategy 2025. According to the guidance cumulative free cash flow will increase to between EUR 4.5 and EUR 5.5 billion in the period from 2020 to 2022.PP Germany dynamic growth continues in German parcel businessThe Post Parcel Germany division posted a revenue increase of 5.5 to EUR 3.7 billion in the third quarter of 2019. Thanks to booming e-commerce the German parcel business continued to perform very well. The initiated pricing measures remain effective leading to an increase in average revenue per parcel. Combined with continued volume growth revenue of Parcel Germany rose by 9.9 to EUR 1.4 billion in the third quarter. Revenue for Post was up 3.1 to EUR 2.3 billion due to the July 1 postage rate increase.Operating profit for the PP division climbed to EUR 304 million in the third quarter 2018 EUR -202 million. Earnings in the prior-year period were negatively impacted by non-recurring restructuring expenses of EUR 392 million. Even excluding this effect year-on-year earnings of the division increased by EUR 114 million. This reflects the benefits of the Groups measures to improve productivity and reduce indirect costs as well as the positive impact of the pricing measures in Post and Parcel which were contrasted by higher costs for personnel transport and materials.Express strong growth in revenue and earnings continuesThe Express division continued to perform very well in the third quarter. The divisions revenue climbed 8.7 to EUR 4.2 billion in the period from July to September. Volumes per day in the core business of international time-definite TDI deliveries rose by 5.9 compared with the prior-year period.The continued expansion of volumes coupled with strict yield management led to an increase in the divisions operating profit of 11.0 to EUR 454 million in the third quarter and a margin improvement to 10.7 2018 10.5.Global Forwarding Freight further improvements in profitability despite weak marketIn a challenging market environment the Global Forwarding Freight division posted a year-on-year revenue increase of 0.9 to EUR 3.7 billion in the third quarter. As in the second quarter the global air freight market remained weak. The ocean freight and overland freight transport markets also lost momentum in the third quarter.
