Photo: Deutsche Post DHL Group press materials

Last Mile Brief 09/03/2023: Deutsche Post DHL Group records increased year-on-year profits

In today's Last Mile Brief, we bring you Deutsche Post DHL Group's 2022 results, plus reports of a new bpost partnership, as well as delivery troubles for Tesco in the UK.

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Today’s headline story:

Deutsche Post DHL Group has announced 15.5% improved year-on-year profits in 2022 and revenue of EUR 94.4 billion.

The company says the jump in revenue resulted entirely from the international business of the DHL divisions, despite the fact that global trade and e-commerce normalized in 2022 as expected with slowing momentum in the final quarter.

Although shipment volumes were slightly below the all-time high of 2021, Deutsche Post DHL Group adds that thanks to flexible structures, the Group was able to continue utilizing its global networks efficiently throughout the year.

The company claims it has also benefited from the increasing demand for resilient supply chains in contract logistics and, particularly in the first half of the year, from high freight rates in the forwarding business.

“Deutsche Post DHL Group achieved a new record with operating profit (EBIT) of EUR 8.4 billion (2021: EUR 8.0 billion). The key driver was the positive earnings development in the internationally operating DHL divisions, which generated EBIT of around EUR 7.6 billion (2021: EUR 6.6 billion). With EUR 1.3 billion, EBIT of Post & Parcel Germany declined by around EUR 500 million compared with the prior-year result. The Group-wide EBIT margin was 8.9 percent (2021: 9.8 percent),” concluded Deutsche Post DHL Group’s statement.

However, as far as 2023 is concerned, Chief Financial Officer Melanie Kreis said:

“The slowing macroeconomic growth momentum is reflected in our EBIT outlook. That is why we are acting particularly prudent in the first half of 2023 and focusing on our yield and cost management.”

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