Results of operations

Group revenue falls by 13.4%

Due to the economic environment, Group revenue fell by €12,678 million to €81,758 million in the 2023 fiscal year. Above all, the normalization of freight rates in the Global Forwarding, Freight division and negative currency effects in the amount of €2,684 million also contributed to this development. The proportion of revenue generated abroad changed from 76.8% to 74.4%. In the fourth quarter of 2023, revenue was down from the prior-year period (€23,776 million) to €21,348 million; negative currency effects in the amount of €770 million contributed to this. At €2,787 million, other operating income fell short of the prior-year period (€2,925 million).

Significantly lower material expense

Material expense decreased significantly from €53,473 million to €41,663 million, largely due to lower transport costs in the Global Forwarding, Freight division in particular as a result of lower volumes and freight rates. In addition, kerosine prices fell markedly year over year. Wage and salary increases and a slightly higher number of employees raised staff costs by €942 million to €26,977 million. Depreciation, amortization and impairment losses were up by €300 million to €4,477 million due to investment activity. At €5,409 million, other operating expenses were below the prior-year period (€5,712 million). In addition to decreased expenses from currency translation, lower expenses from impairment losses and remeasurements of receivables and liabilities were incurred in the year under review. Net income/expenses from investments accounted for using the equity method changed from €⁠–⁠39 million in the previous year to €161 million. In the year under review, this included, in particular, remeasurement income as a result of the increased shareholding in DHL Logistics in the United Arab Emirates.

Consolidated EBIT down

Totaling €6,345 million in the year under review, profit from operating activities (EBIT) came in €2,091 million lower than the prior-year figure. This figure declined from €1,922 million to €1,642 million in the fourth quarter. Primarily because the interest expenses for provisions and lease liabilities rose, net finance costs were €829 million and therefore above the level of the previous year (net finance costs of €525 million). Profit before income taxes fell by €2,395 million to €5,516 million. As a result, income taxes decreased by €613 million to €1,581 million in spite of a slightly higher tax rate.

Consolidated net profit in line with EBIT

Consolidated net profit showed a decline in the 2023 fiscal year from €5,717 million to €3,935 million. Of this amount, €3,677 million is attributable to Deutsche Post AG shareholders and €258 million to noncontrolling interest holders. Basic earnings per share fell from €4.41 to €3.09 and diluted earnings per share from €4.33 to €3.04.

Dividend of €1.85 per share proposed

Our finance strategy calls for paying out 40% to 60% of net profit as dividends as a general rule. The Board of Management and the Supervisory Board will therefore propose to the shareholders at the Annual General Meeting on May 3, 2024, a dividend of €1.85 per share for the 2023 fiscal year (previous year: €1.85). The payout ratio in relation to the consolidated net profit attributable to Deutsche Post AG shareholders amounts to 59.0%. The dividend yield based on the year-end closing price for shares is 4.1%. The dividend will be disbursed on May 8, 2024.

TOTAL DIVIDEND AND DIVIDEND PER NO-PAR-VALUE SHARE

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1 Proposal.

EBIT after asset charge (EAC) declines

EAC declined in 2023 from €5,117 million to €2,860 million. While EBIT was down, the imputed asset charge rose slightly.

Net asset base as of the reporting date increased by €1,724 million to €41,886 million. Intangible assets and property, plant and equipment increased, mainly on account of the takeover of MNG Kargo as well as the acquisition of freight aircraft and investments in warehouses, sorting facilities and the vehicle fleet. Net working capital decreased compared with the previous year.

Both operating provisions as well as other noncurrent assets and liabilities were up.