DHL Group has reported revenue growth for 2024, despite a decline in annual operating profit. The company’s total revenue increased by 3% to €84.2 billion, up from €81.8 billion in 2023. However, operating profit (EBIT) fell 7.2% to €5.9 billion, compared to €6.3 billion in the previous year.
“We increased our revenue in 2024 despite the challenging environment. In a strong fourth quarter with good service quality for our customers, we achieved substantial revenue and earnings growth,” said CEO Tobias Meyer on revenue and growth.
In the fourth quarter of 2024, DHL Group saw a 6.4% revenue increase, reaching €22.7 billion, while EBIT rose 12.9% to €1.9 billion. Despite a challenging economic environment, the company continued to expand its revenue base, though its annual net profit declined by 9.3% to €3.3 billion.
DHL Group’s free cash flow (excluding M&A) stood at €3 billion, slightly below the €3.3 billion reported in 2023. The Management Board has proposed maintaining the dividend at €1.85 per share, resulting in a total payout of approximately €2.1 billion. The company also increased its share buyback program by €2 billion, bringing the total to €6 billion, extending it until 2026.
“DHL Group is an attractive investment for shareholders. We underscore this with the dividend proposal and an extended, topped-up share buyback program. We have a strong balance sheet and high financial performance,” added CFO Melanie Kreis.
Express
- Revenue increased by 1.2% to €25.1 billion.
- EBIT declined by 4.5% to €3.08 billion, impacted by cost pressures and market volatility.
The division focused on high-value B2B shipments, particularly on transpacific trade lanes.
Global Forwarding, Freight
- Revenue rose 1.8% to €19.6 billion.
- EBIT dropped 24.5% to €1.07 billion, affected by geopolitical conflicts and supply chain disruptions in the Red Sea.
Freight rates increased due to capacity constraints and e-commerce demand.
Supply Chain
- Revenue grew 4.3% to €17.7 billion.
- EBIT climbed 11.1% to €1.07 billion, reaching a record level.
Growth was driven by contract renewals and efficiency improvements through digitalization.
eCommerce
- Revenue rose 10.2% to €7 billion.
- EBIT fell 3.1% to €281 million, mainly due to network expansion costs.
Post & Parcel Germany
- Revenue increased 2.7% to €17.3 billion.
- EBIT declined 5.6% to €821 million, despite parcel volume growth.
Letter mail volumes continued to decline, impacting overall profitability.
DHL Group introduced its “Fit for Growth” program to cut costs by over €1 billion by 2027. As part of the initiative, the company plans to reduce approximately 8,000 positions in its Post & Parcel Germany division in 2025.
DHL Group anticipates a subdued macroeconomic environment in 2025 but expects to generate an EBIT of over €6 billion and free cash flow of approximately €3 billion. The outlook does not account for potential trade policy changes, which could significantly impact operations.