Deutsche Post DHL Group closed 2020 with record-breaking results. On the back of those figures, the company also expects further profit growth in 2021.
Last week, Deutsche Post DHL Group published its preliminary results for 2020. The Group’s EBIT (earnings before interest and tax) rose to a record high of €4.840 billion, significantly exceeding the earnings forecast of €4.1 to €4.4 billion for the 2020 financial year.
Group sales also increased by 5%, reaching €66.8 billion.
The company’s excellent performance can be partly attributed to the growth of global eCommerce. Free cash flow was approximately €2.5 billion in the 2020 financial year.
Overall, the Group managed to significantly exceed the previous year’s result by around €1.6 billion. In addition, the company invested €3.0 billion in 2020, exceeding gross investment forecasts.
2020 was a remarkable year: despite numerous challenges, we managed to achieve a record result. Our strategy and business model have proven resilient – even in turbulent times for the global economy,” comments Frank Appel, CEO of Deutsche Post DHL Group.
Group increases medium-term profit forecast
In view of the positive business development, Deutsche Post DHL also expects an increase in its medium-term forecasts.
The outlook for cumulative free cash flow between 2020 and 2022 has been raised to over €6 billion (originally estimated between €5 billion and €6 billion). Moreover, gross investment (capital expenditure) over the same period is expected to be around €9.5 billion (originally predicted to be between €8.5 billion and €9.5 billion).
£350M investment: DHL UK teams up with Mars to build warehouses
In addition to the aforementioned financial results, DHL has just announced that the company has partnered up with Mars to construct two warehousing facilities in the UK. The aim of the project is to remove one million miles from the roads, says DHL.
Photo credit @ DHL
The new sites in the Midlands and East London, which will be constructed at the cost of £350M, have been designed with sustainability in mind. The new facilities should reduce Mars’ outbound logistics carbon footprint in the UK by 7.7%, which equates to a million miles a year.
The partially solar-powered depots, ‘East Midlands Gateway’ and ‘London Thames Gateway’, will be operational in the spring of 2022 and 2023 respectively.
The sites will have a combined square footage of over a million feet and they will both have state of the art high bay facilities which include innovative automated pallet storage.
Photo credit @ DHL Deutsche Post