EDITORIAL
"We planned our capacities
with a view to the future,
kept our eye on costs
and increased our efficiency."
Dear Readers,
DHL Group once again demonstrated its high performance in 2023. Although the global economy underwent no noteworthy recovery and the geopolitical challenges remain, as a company, we achieved our annual targets.
In the 2023 fiscal year, EBIT came in at €6.3 billion and thus within the forecast range. Free cash flow is particularly pleasing, amounting to €3.3 billion before M&A activities. The numbers prove it: we are highly profitable, even in the economically weakest market environment of the last 15 years.
This is thanks to the fact that we not only had good responses to the challenges, but we were also prepared: we planned our capacities with a view to the future, kept our eye on costs and increased our efficiency on an ongoing basis. The investments of recent years resulted in structural improvements to our profitability. We benefit from this even in phases of weak economic momentum. In addition, we adjusted prices in line with the market and passed on inflationary cost developments to our customers.
The past fiscal year makes it once again clear: our logistics portfolio, which is unique around the world, is productive and robust. No other company in the industry boasts such a broad, diversified and global structure. And our network is very well suited for online retail, which remains a strong and fundamental driver of growth. As a company, we have been on board with the e-commerce trend since the early days and have used it to our advantage. It has been contributing to our success for many years – and will continue to do so in the coming years.
DHL Group also pursues ambitious goals with regard to the environment, social responsibility and sound corporate governance in line with our ESG Roadmap. Our ESG measures contribute to us remaining a market leader in the future as well.
Our particular priority along the way is that we remain steadfast on the path to decarbonization of logistics. In the year under review, we increased our investments in the reduction of greenhouse gases by 56% and saved 1.3 million metric tons of CO2e. In addition, we successfully placed our first sustainability-linked bond on the capital market with a volume of €500 million. We will not ease up in our dedication to more environmentally friendly logistics. Climate change remains the greatest problem that humanity is faced with. And the clock keeps on ticking.
My particular thanks go to our more than 590,000 employees worldwide – for their tireless efforts in yet another challenging year. Without their motivation and passion, we would not have been able to so successfully accomplish many things. We are pleased that we again exceeded the target of more than 80% in Employee Engagement in the year under review, with the figure coming in at 83%. And, going forward, we plan to offer our employees more opportunities to directly take part in the success of the company. To this end, we are piloting a program in 12 countries that allows employees to acquire our shares at a discounted price. The program is intended to further strengthen the connection between the workforce and the company.
And what can we look forward to over the remainder of 2024? Although global trade continues to find itself in a challenging environment, I see a year of opportunity – also because competitors are withdrawing or appear to be distracted. For our part, we are definitely focused and in a position to continue delivering excellent quality. We are continuing to work on our status as an employer, provider and investment of choice. In doing so, we want to take advantage of the many opportunities for DHL Group to continue to grow.
And I thank you, Dear Shareholders, for the trust you have placed in me since I was named CEO of DHL Group. Leading a company that keeps the world running, day in and day out, and that enables trade in more than 220 countries and territories is an inspiring and special responsibility. A company that connects people and improves lives. DHL Group has evolved from a national postal service provider to a leader in the global logistics market. I look forward to writing the upcoming chapters of this success story together with my colleagues on the Board of Management and the highly dedicated workforce.
Tobias Meyer
Chief Executive Officer
Tobias Meyer
Chief Executive Officer