Deutsche Post AG Sees Strong Q3 2021 And Will Raise Guidance
BONN, GERMANY - EQS Newswire - 7 October 2021 - Disclosure of inside information pursuant to Article 17 MAR
Management has today assessed the preliminary group results for the month of September and hence Q3 2021 as well as the outlook for the remainder of the year.
The positive development of the group's businesses seen in the first half of the year has continued well through the third quarter 2021. Q3 volume trends confirm base assumptions with continued well supported B2B recovery and B2C volumes staying at high previous year levels across all major networks. At the same time the tight capacity situation both in Ocean and Air Freight markets continued. For Q3 2021 the EBIT performance is forming out as follows:
Preliminary group EBIT reached around EUR 1.765 billion in Q3 2021 (Q3 2020: EUR 1.377 billion), bringing the EBIT of the first nine months of this year to around EUR 5.760 billion. As a reminder, Q3 2020 came including EUR -163 million for the one-time pandemic bonus; in this year's Q3 there is an effect of EUR -179 million with a similar distribution across the divisions. Related payment is expected in Q4.
The divisional results in Q3 in detail:
EBIT in the Express division reached around EUR 970 million in the third quarter of 2021 compared to previous year's Q3 of EUR 753 million.
EBIT in Global Forwarding, Freight stood at around EUR 370 million in Q3 2021, also clearly ahead of previous year's Q3 of EUR 155 million.
EBIT at Supply Chain came in at around EUR 140 million in Q3 2021, significantly above last year's Q3 result which stood at EUR 112 million.
Also, eCommerce Solutions recorded Q3 2021 EBIT of around EUR 90 million. It was at EUR 76 million in Q3 2020.
EBIT in Post & Parcel Germany in Q3 2021 was around EUR 300 million (Q3 2020: EUR 320 million).
Group Functions/Consolidation recorded a result of around EUR -105 million in Q3 2021; last year's Q3 reached EUR -39 million including positive effects in the context of the StreetScooter repositioning.
The continued positive business development is underpinned by a continued equally strong development of cash flow; free cash flow in Q3 2021 amounted to more than EUR 1.0 billion. In Q3 2020 this figure was at EUR 1.264 billion. For the first nine months of 2021 Free Cash Flow now stands at more than EUR 3.1 billion versus EUR 1.460 billion last year.
In light of the continued positive earnings momentum also in Q3 2021, management will raise guidance for FY 2021 Group EBIT and FCF, driven by the strong development in the DHL divisions. Also, the mid-term guidance for FY 2023 will be subject to upward revision.
The revised guidance will be published with the formal release of Q3 2021 earnings on November 4th 2021.
The comprehensive disclosure for Q3/9M 2021 will be released on November 4th 2021 as planned.
Explanations on these financial indicators are available in the 2020 Deutsche Post DHL Group Annual Report (see page 25f) which is published on the company's website at the link below: