Dividend stable
DHL profit collapses – further decline possible
March 6, 2024, 8:53 a.m
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The global crises are leaving their mark on DHL. Sales and earnings are falling significantly. The group does not expect a recovery until the second half of the year at the earliest. Investors should initially feel little of this – the distribution remains stable and the people of Bonn invest even more in maintaining the price.
The logistics group DHL recorded an even sharper drop in profits last year than expected. And the people of Bonn are not expecting a quick improvement. “We will continue to experience major uncertainties such as volatility in demand and geopolitical crises in 2024,” said DHL boss Tobias Meyer and does not rule out a further decline in earnings. For the first half of the year, the DAX group does not expect a broad economic upturn, but rather an even further decline in market volume. The group only expects more positive global economic dynamics in the second half of the year.
As a result, the logistics giant is aiming for an operating result of between 6 and 6.6 billion euros for the full year 2024. This could mean that it is lower than the 6.3 billion euros that remained operational last year. This was already a quarter less than in 2022. By 2026, EBIT is expected to increase to 7.5 billion to 8.5 billion euros.
According to further information, the surplus fell by almost a third to almost 3.7 billion euros. The revenue of the former Deutsche Post, which has been operating under the name DHL since last year, fell from 94.4 billion to 81.8 billion euros.
Regardless of the reduced profit for the financial year, investors should receive an unchanged dividend of 1.85 euros per share. In addition, the share buyback program will be extended until 2025 and increased by a third to four billion euros.
In an initial reaction, a market participant pointed out that Deutsche Post had slightly missed expectations regarding profit figures. “On the other hand, the market was already very skeptical about the numbers.” That’s why the slight disappointment could be priced in, he says. The focus is also on increasing the share buyback program, which should now support the price.