Deutsche Post (DHL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 6.2% to €20,592 million, reversing prior declines, while EBIT was flat at €1,373 million, showing improvement from earlier quarters.

• Strong B2C parcel and eCommerce volume growth offset weak B2B and mail volumes, especially in Europe.

• Net profit attributable to shareholders declined 6.9% to €751 million; basic EPS was €0.64, down 5.9%.

• Board announced a major modernization of the Group structure, aligning legal and management structures and managing all divisions as standalone entities over two years.

• Management remains focused on cost, yield, and capex discipline, supporting strong free cash flow and shareholder returns.

Financial highlights

• Q3 2024 revenue: €20,592 million (+6.2% year-over-year); Q3 EBIT: €1,373 million (flat year-over-year).

• Net profit attributable to shareholders was €751 million, down 6.9% year-over-year; basic EPS was €0.64, down 5.9%.

• Free cash flow for Q3 was €723 million, down from €1,074 million in Q3 2023, mainly due to higher working capital outflow.

• Group EBIT margin remained stable; positive one-time effect of ~€70 million from legal disputes included in Q3 EBIT.

• Net debt as of September 30, 2024: €19,428 million, up from €17,739 million at year-end 2023.

Outlook and guidance

• FY 2024 EBIT guidance revised to above €5.8 billion (from €6.0–6.6 billion), with DHL divisions expected to contribute over €5.5 billion and Post & Parcel Germany around €0.8 billion.

• FY 2024 capex guidance reduced to €3.0–3.2 billion; free cash flow guidance now €2.8–3.0 billion.

• Midterm EBIT target adjusted to above €7 billion, reflecting slower B2B recovery and regulatory decisions.

• Guidance reflects continued muted macro environment, challenging B2B volumes, and accelerated mail decline.

• Strategy 2030 launched, targeting over 5% annual revenue growth and 50% higher Group revenue by 2030, with focus on quality, customer loyalty, and decarbonization.