In its preliminary results for 2020, Deutsche Post DHL Group (DP DHL) has reported record earnings, despite the “challenging economic environment” experienced last year as a result of the coronavirus pandemic.
The logistics and parcels giant achieved its highest operating profits (ebit) for the financial year: €4.8bn, which “significantly outperformed” its earnings guidance of €4.1bn to €4.4bn.
Meanwhile, the group achieved revenues of €66.8bn for the financial year of 2020 year.
The company said it benefitted from a successful peak season in the last few months of the year, as well as e-commerce growth throughout the entire year.
“Evidence of the profitable growth in the past financial year is the extraordinarily positive development in the express as well as in the national and international parcel business,” the company stated in a press release.
DP DHL’s highest-performing division last year, in terms of revenues, was Express, which posted a 19% year-on-year increase in revenues to €19.1bn. The division also achieved a 35% year-on-year increase in ebit to €2.8bn.
The second-best earning division was Post & Parcel Germany, which recorded a 7% year-on-year increase in revenues to €16.5bn. Full-year ebit for the division increased 29% year on year to €1.6bn.
Global Forwarding Freight achieved a 5% year-on-year increase in revenues to €16bn. Ebit for the year increased 13% year on year to €5.9m.
eCommerce Solutions revenues increased by 19% year on year to €4.8bn. The division also posted €160m in ebit for the year.
The Supply Chain division experienced a 7% year-on-year slide in revenues to €2.5bn. Ebit declined 53% year on year to €430m.
Frank Appel (pictured), chief executive of DP DHL, commented: “The year 2020 was an exceptional year: despite all the challenges faced, we achieved a record result.
“Our strategy and business model have proven resilient – even in turbulent times for the global economy.”
Chief financial officer Melanie Kreis added: “In financial terms, the past financial year was a complete success.
“We were able to accomplish all planned investments in future growth and at the same time increased our profitability. We can be proud of the outstanding development of free cash flow in an economically uncertain environment.
“With the record result behind us and the beginning economic recovery in sight, we can confidently provide a more positive outlook.”
Appel concluded: “Thanks to the incredible performance of our 550,000 employees all over the world we made a positive contribution to people and societies during the Covid-19 crisis. We are now focused on distributing the Covid-19 vaccine all over the world.”
DP DHL informed that its reporting for the full year of 2020 will be published on March 9, 2021.
source:Air Cargo News