DHL defended itself surprisingly well against the upheavals caused by global trade conflicts in the third quarter. Contrary to analysts’ expectations, operating profit increased. This is the result of active capacity management and structural cost improvements, said CEO Tobias Meyer, according to an announcement on Thursday in Bonn. Price adjustments also helped. Meyer confirmed the annual outlook and sees the group as well prepared for the important end-of-year business.
Sales in the third quarter fell slightly compared to the previous year to 20.1 billion euros, which the DAX group attributed to currency effects and declines in volume when presenting its quarterly report. But operating earnings before interest and taxes (EBIT) rose by 7.6 percent to 1.5 billion euros. Analysts, however, had expected a decline.
At the beginning of March, DHL announced a savings program with numerous measures in all areas of the group, which is expected to take full effect in 2027. The board wants to reduce costs by more than a billion euros. In the third quarter, reduced aviation costs helped in the high-margin express business with time-critical shipments.
The austerity measures also had a very positive effect on free cash inflow, which rose by 80 percent to 1.2 billion euros. The profit attributable to shareholders rose by around 12 percent to 840 million euros. These metrics were also stronger than analysts had expected, according to data provided by the company.
DHL also surprised positively with its confirmed annual forecast. The group continues to expect an operating profit of at least 6 billion euros in 2025. However, analysts surveyed by the company do not yet assume that the round mark can be broken.
After the unexpectedly strong third quarter, the important final quarter is now crucial for a good performance for the year as a whole. It is of great importance year after year because of the Christmas business, but also thanks to many discount campaigns from online retailers such as “Black Friday” and “Singles’ Day” and brings in enormous quantities of goods shipped. During this period of so-called heavy traffic, DHL expects a “typical seasonal increase in e-commerce deliveries to consumers” despite the economic downturn and cautious consumer sentiment. DHL boss Meyer sees the group as well prepared for this.