Overall assessment of the Board of Management

In the first year without direct effects from the pandemic, the Group managed to maintain results of operations at a level well above that from the years before the pandemic, in spite of the absence of a thorough economic recovery. The 2023 fiscal year was shaped by the lack of global economic recovery and the normalization of freight transport following the pandemic-related volatility of the years 2021 and 2022. As expected, profit from operating activities (EBIT) of €6.3 billion did not reach the level of the prior-year figure. Lower freight volumes and significantly decreased freight rates, as well as negative currency effects, were a burden on the business of the DHL divisions. The results of the Post & Parcel Germany division reflect cost increases and regulatory framework conditions for the German letter mail business. Nevertheless, the Group achieved a free cash flow of €2.9 billion, including acquisitions and divestitures, in the past fiscal year. DHL Group thus underscores its structurally improved ability to perform and financial strength, even in a weak economic environment.

In the year under review, the divisions continued to focus on their profitable core business and ensured that the services and products could be provided reliably. On the one hand, DHL Group kept a close eye on costs and, on the other, invested further in growth areas of global operations as well as in the quality of its services. Representing a significant lever for sustainable business growth, digital transformation plays a crucial role in the DHL Group strategy. DHL Group therefore invests in initiatives designed to improve the experiences its customers and employees have with the company and to increase operational efficiency. Overall, we believe that e-commerce and globalization – along with omnishoring – and increasingly sustainability as well, are megatrends that will provide for growth in the future.

DHL Group has a wealth of experience in dealing with various economic cycles and crises around the world. Thanks to its global presence and the broad portfolio of transport and logistics services, there were also areas of business growth in the year under review. DHL Group is well positioned to not only manage the current challenges, but also to take advantage of an upward trend in the global economy as soon as it arises.