SELECTED KEY FIGURES |
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|---|---|---|---|---|---|---|---|
| 9M 2022 adjusted |
9M 2023 | +/– % | Q3 2022 adjusted |
Q3 2023 | +/– % | ||
| Revenue | €m | 70,660 | 60,410 | –14.5 | 24,038 | 19,398 | –19.3 |
| Profit from operating activities (EBIT) | €m | 6,514 | 4,703 | –27.8 | 2,029 | 1,372 | –32.4 |
| Return on sales1 | % | 9.2 | 7.8 | – | 8.4 | 7.1 | – |
| EBIT after asset charge (EAC) | €m | 4,052 | 2,108 | –48.0 | 1,170 | 501 | –57.2 |
| Consolidated net profit for the period2 | €m | 4,024 | 2,696 | –33.0 | 1,220 | 807 | –33.9 |
| Free cash flow | €m | 2,285 | 2,507 | 9.7 | 1,817 | 1,074 | –40.9 |
| Net debt3 | €m | 15,856 | 17,249 | 8.8 | – | – | – |
| Earnings per share4 | € | 3.30 | 2.26 | –31.5 | 1.01 | 0.68 | –32.7 |
| Number of employees5 | 590,386 | 589,184 | –0.2 | – | – | – | |
1 EBIT/revenue.2 After deduction of noncontrolling interests.3 Prior-year figure as of December 31.4 Basic earnings per share.5 Headcount at the end of the quarter, including trainees. |
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As part of the completed second and initiated third tranches of the 2022–2024 share buyback program, we had repurchased a total of 18.4 million additional shares in the amount of €772 million over the course of the year through September 30, 2023.
On June 26, 2023, we placed a sustainability-linked bond with an issue volume of €500 million and a term through 2033. The cash inflow in conjunction with the bond was recognized in the third quarter of 2023.
In the third quarter of 2023, the consolidated revenue of €19,398 million was 19.3% below the prior-year level due to the economic environment and the expected normalization of the freight markets. This includes negative currency effects amounting to €989 million. At €753 million, other operating income exceeded the prior-period amount of €664 million.
Consolidated EBIT in the third quarter of 2023 amounted to €1,372 million, 32.4% below the prior-year figure. Net finance costs amounted to €162 million (previous year: €152 million). Profit before income taxes fell by €667 million to €1,210 million. As a result, income taxes decreased to €363 million, and the tax rate amounted to 30.0% (previous year: 29.0%).
Consolidated net profit for the period in the third quarter of 2023 amounted to €847 million, thus below the prior-year figure of €1,333 million. Of this amount, €807 million is attributable to Deutsche Post AG shareholders and €40 million to noncontrolling interest holders. Earnings per share amounted to €0.68 for both basic and diluted.
EAC for the third quarter of 2023 declined from €1,170 million to €501 million, due mainly to the decrease in EBIT. Imputed asset charges rose slightly. The increase in property, plant and equipment through capital expenditure in all divisions was largely offset by a decline in net working capital, in particular in the Global Forwarding, Freight division.
As of September 30, 2023, the Group reported centrally available liquidity in the amount of €1.7 billion, which is comprised of cash and cash equivalents as well as current financial assets. Due to our solid liquidity situation, the syndicated credit line in the amount of €2 billion was not drawn. In addition, unused bilateral credit lines in the amount of €1.6 billion were available as of the reporting date.
Investments in property, plant and equipment and intangible assets acquired (not including goodwill) amounted to €871 million in the third quarter of 2023 (previous year: €958 million) and were made predominantly in the expansion of network infrastructure.
Net cash from operating activities decreased in the third quarter of 2023 from €3,465 million in the previous year to €2,534 million. Net cash used in investing activities amounted to €559 million, €734 million below the figure in the same quarter of last year, which was primarily characterized by short-term investments and the purchase price payment for the Glen Cameron Group. At €1,074 million, free cash flow in the third quarter came in below the prior-year figure of €1,817 million. Excluding the payments for acquisitions and divestitures, it decreased by €884 million. Net cash used in financing activities declined by €239 million to €1,370 million, due primarily to proceeds of €498 million from the sustainability bond. Cash and cash equivalents rose from €3,790 million as of December 31, 2022, to €3,906 million.
Net debt rose from €15,856 million as of December 31, 2022, to €17,249 million as of September 30, 2023.
Revenue in the division decreased by 18.2% to €5,885 million in the third quarter of 2023. This includes negative currency effects amounting to €439 million, as well as lower fuel surcharges. Excluding currency effects and fuel surcharges, third-quarter revenue was down 6.4%. Reflective of the continued softer market conditions, TDI daily shipment volumes declined by 2.7%.
As with previous reporting quarters in the prevailing operating environment, benefits were seen from the continued drive to enhance productivity, optimize the utilization of capacity in our network and effectively manage costs. In the third quarter of 2023, EBIT in the division was €667 million, 34.1% below the level of the prior-year’s figure. In addition to currency effects, temporary negative effects from the increase in fuel prices had an impact in this regard. Accordingly, return on sales amounted to 11.3%.
KEY FIGURES, EXPRESS |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Revenue | 20,563 | 18,288 | –11.1 | 7,197 | 5,885 | –18.2 |
| of which Europe | 8,293 | 8,132 | –1.9 | 2,824 | 2,586 | –8.4 |
| Americas | 4,586 | 4,438 | –3.2 | 1,627 | 1,474 | –9.4 |
| Asia Pacific | 7,433 | 6,458 | –13.1 | 2,597 | 2,129 | –18.0 |
| MEA (Middle East and Africa) | 1,169 | 1,118 | –4.4 | 407 | 361 | –11.3 |
| Consolidation/Other | –918 | –1,858 | <–100 | –258 | –665 | <–100 |
| Profit from operating activities (EBIT) | 3,084 | 2,471 | –19.9 | 1,012 | 667 | –34.1 |
| Return on sales (%)1 | 15.0 | 13.5 | – | 14.1 | 11.3 | – |
| Operating cash flow | 4,376 | 3,732 | –14.7 | 1,785 | 1,368 | –23.4 |
1 EBIT/revenue. |
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EXPRESS: REVENUE BY PRODUCT |
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|---|---|---|---|---|---|---|
| €m per day1 | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Time Definite International (TDI) | 84.9 | 80.5 | –5.2 | 85.8 | 77.3 | –9.9 |
| Time Definite Domestic (TDD) | 6.4 | 6.0 | –6.3 | 6.1 | 5.6 | –8.2 |
1 To improve comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days. |
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EXPRESS: VOLUME BY PRODUCT |
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|---|---|---|---|---|---|---|
| Items per day (thousands) | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Time Definite International (TDI) | 1,128 | 1,083 | –4.0 | 1,096 | 1,066 | –2.7 |
| Time Definite Domestic (TDD) | 551 | 480 | –12.9 | 513 | 436 | –15.0 |
Revenue in the division decreased as expected by 44.0% to €4,417 million in the third quarter of 2023 due to lower volumes and declined freight rates. Excluding negative currency effects of €307 million, revenue was down 40.1% compared with the prior-year period.
Revenue in the Global Forwarding business unit decreased by 50.7% to €3,256 million in the third quarter against the backdrop of the general normalization of freight markets. Without taking negative currency effects of €274 million into account, the decrease was 46.5%. Gross profit in the Global Forwarding business unit was down from the previous year by 30.1% to €911 million.
We registered a decrease of 12.2% in air freight volumes in the third quarter of 2023. This impacted all main trade lanes, especially those between Asia, the United States and Europe, as well as within Asia. Air freight revenues dropped by 48.4% and gross profit by 45.0% due to lower volumes and selling rates. Ocean freight volumes were down 10.2% over the prior-year period in the third quarter of 2023. Our ocean freight revenues decreased by 59.5% and gross profit by 27.9% in the third quarter.
At €1,190 million, revenue in the Freight business unit was 10.1% below the prior-year period in the third quarter of 2023. Volumes were down by 12.9%. Gross profit for the business unit fell by 4.9% to €309 million.
EBIT in the division decreased to €306 million in the third quarter of 2023. The EBIT margin of 6.9% remained at a very good level. EBIT in the division thus corresponds to 25.1% of gross profit and 30.2% for the Global Forwarding business unit.
KEY FIGURES, GLOBAL FORWARDING, FREIGHT |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Revenue | 23,407 | 14,740 | –37.0 | 7,892 | 4,417 | –44.0 |
| of which Global Forwarding | 19,541 | 10,984 | –43.8 | 6,604 | 3,256 | –50.7 |
| Freight | 3,969 | 3,844 | –3.1 | 1,323 | 1,190 | –10.1 |
| Consolidation/Other | –103 | –88 | 14.6 | –35 | –29 | 17.1 |
| Profit from operating activities (EBIT)1 | 1,909 | 1,083 | –43.3 | 573 | 306 | –46.6 |
| Return on sales (%)1, 2 | 8.2 | 7.3 | – | 7.3 | 6.9 | – |
| Operating cash flow | 2,222 | 1,847 | –16.9 | 1,109 | 505 | –54.5 |
1 Prior-year figure adjusted due to final purchase price allocation for Hillebrand.2 EBIT/revenue. |
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GLOBAL FORWARDING: REVENUE |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Air freight | 8,228 | 4,542 | –44.8 | 2,595 | 1,340 | –48.4 |
| Ocean freight | 9,022 | 4,464 | –50.5 | 3,193 | 1,292 | –59.5 |
| Other | 2,291 | 1,978 | –13.7 | 816 | 624 | –23.5 |
| Total | 19,541 | 10,984 | –43.8 | 6,604 | 3,256 | –50.7 |
GLOBAL FORWARDING: VOLUMEs |
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|---|---|---|---|---|---|---|---|
| thousands | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % | |
| Air freight exports | tons | 1,453 | 1,239 | –14.7 | 467 | 410 | –12.2 |
| Ocean freight | TEU1 | 2,525 | 2,318 | –8.2 | 883 | 793 | –10.2 |
1 Twenty-foot equivalent units. |
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Revenue in the division increased by 1.8% to €4,258 million in the third quarter of 2023. Excluding negative currency effects of €191 million, the increase was 6.3%. This development was driven by new business, contract renewals and growing e-commerce business.
In the third quarter of 2023, the division concluded additional contracts with a volume of €905 million. The Consumer and Retail sectors accounted for the majority of the new business, which is, in a large part, attributable to e-commerce-based solutions. The annualized contract renewal rate remained at a consistently high level.
EBIT in the division for the third quarter increased to €242 million (previous year: €219 million). In addition to the positive development of revenue, earnings growth was spurred by productivity improvements thanks to digitalization and standardization. The EBIT margin for the third quarter was 5.7%
Key figures, SUPPLY CHAIN |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Revenue | 12,068 | 12,597 | 4.4 | 4,184 | 4,258 | 1.8 |
| of which EMEA (Europe, Middle East and Africa) | 5,306 | 5,546 | 4.5 | 1,785 | 1,886 | 5.7 |
| Americas | 5,045 | 5,206 | 3.2 | 1,782 | 1,761 | –1.2 |
| Asia Pacific | 1,770 | 1,888 | 6.7 | 637 | 629 | –1.3 |
| Consolidation/Other | –53 | –43 | 18.9 | –20 | –18 | 10.0 |
| Profit from operating activities (EBIT)1 | 668 | 741 | 10.9 | 219 | 242 | 10.5 |
| Return on sales (%)1, 2 | 5.5 | 5.9 | – | 5.2 | 5.7 | – |
| Operating cash flow | 613 | 947 | 54.5 | 387 | 494 | 27.6 |
1 Prior-year figures adjusted due to the final purchase price allocation for Cameron.2 EBIT/revenue. |
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The division generated revenue of €1,477 million in the third quarter of 2023, down 0.8% on the prior-year level. Excluding negative currency effects of €59 million, revenue was 3.2% up on the prior-period amount.
EBIT in the division for the third quarter of 2023 declined from €87 million to €55 million. This was attributable mainly to higher costs as well as continuous investment in the expansion of the networks. The EBIT margin for the quarter was 3.7%.
Key figures, ECOMMERCE |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Revenue | 4,446 | 4,490 | 1.0 | 1,489 | 1,477 | –0.8 |
| of which Americas | 1,552 | 1,553 | 0.1 | 529 | 511 | –3.4 |
| Europe | 2,351 | 2,452 | 4.3 | 770 | 797 | 3.5 |
| Asia | 543 | 484 | –10.9 | 190 | 168 | –11.6 |
| Other/Consolidation | 0 | 1 | 100.0 | 0 | 1 | 100.0 |
| Profit from operating activities (EBIT) | 298 | 214 | –28.2 | 87 | 55 | –36.8 |
| Return on sales (%)1 | 6.7 | 4.8 | – | 5.8 | 3.7 | – |
| Operating cash flow | 469 | 354 | –24.5 | 173 | 127 | –26.6 |
1 EBIT/revenue. |
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At €3,959 million, revenue in the division was with 0.3% slightly above the prior-year period in the third quarter of 2023. The main reason for this development was the higher parcel prices for business customers and increased volumes in national and international business with shipments containing merchandise. This was countered by a volume decline of 6.1% in the third quarter in German postal business caused by sustained structural change in mail and communication business as well as declining sales of advertising mail due to inflation and consumer restraint.
Division EBIT in the third quarter of 2023 amounted to €207 million and thus fell 28.6% short of the prior-year period. With revenue slightly above the prior-year quarter, this was attributable to higher material costs brought on by inflation and pressure from collective bargaining agreements. Return on sales in the quarter was 5.2%.
KEY FIGURES, POST & PARCEL GERMANY |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Revenue | 12,156 | 12,153 | 0,0 | 3,948 | 3,959 | 0.3 |
| of which Post Germany | 5,837 | 5,533 | –5.2 | 1,871 | 1,791 | –4.3 |
| Parcel Germany | 4,552 | 4,790 | 5.2 | 1,502 | 1,577 | 5.0 |
| International | 1,707 | 1,761 | 3.2 | 556 | 567 | 2.0 |
| Other/Consolidation | 60 | 69 | 15.0 | 19 | 24 | 26.3 |
| Profit from operating activities (EBIT) | 887 | 468 | –47.2 | 290 | 207 | –28.6 |
| Return on sales (%)1 | 7.3 | 3.9 | – | 7.3 | 5.2 | – |
| Operating cash flow | 1,147 | 768 | –33.0 | 267 | 222 | –16.9 |
1 EBIT/revenue. |
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POST & PARCEL GERMANY: REVENUE |
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|---|---|---|---|---|---|---|
| €m | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Post Germany | 5,837 | 5,533 | –5.2 | 1,871 | 1,791 | –4.3 |
| of which Mail Communication | 3,977 | 3,736 | –6.1 | 1,276 | 1,209 | –5.3 |
| Dialogue Marketing | 1,342 | 1,284 | –4.3 | 434 | 422 | –2.8 |
| Other/Consolidation Post Germany | 518 | 513 | –1.0 | 161 | 160 | –0.6 |
| Parcel Germany | 4,552 | 4,790 | 5.2 | 1,502 | 1,577 | 5.0 |
POST & PARCEL GERMANY: VOlumes |
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|---|---|---|---|---|---|---|
| items (millions) | 9M 2022 | 9M 2023 | +/– % | Q3 2022 | Q3 2023 | +/– % |
| Post Germany | 10,433 | 9,786 | –6.2 | 3,350 | 3,145 | –6.1 |
| of which Mail Communication | 4,617 | 4,371 | –5.3 | 1,465 | 1,371 | –6.4 |
| Dialogue Marketing | 5,136 | 4,772 | –7.1 | 1,673 | 1,582 | –5.4 |
| Parcel Germany | 1,181 | 1,233 | 4.4 | 391 | 411 | 5.1 |
Of the three macroeconomic scenarios that previously formed the basis for our guidance, the scenario with a broad recovery as of the middle of the year is no longer applicable; for this reason, we can confirm the remaining scenarios of a later or no recovery in the calendar year at this time:
In the current 2023 fiscal year, we therefore anticipate consolidated EBIT between €6.2 billion and €6.6 billion. We expect the DHL divisions to generate total EBIT between €5.7 billion and €6.1 billion. We continue to expect EBIT of the Post & Parcel Germany division to come in between €0.8 billion and €1.0 billion. Group Functions is anticipated to contribute around
€–0.45 billion to earnings.
We plan for capital expenditure (excluding leases) at around €3.5 billion in 2023, while focusing on the same areas as in previous years. Free cash flow is projected at around €3.0 billion, excluding acquisitions/divestitures; we expect cash outflows of around €500 million for acquisitions/divestitures in 2023.
Mail volumes fell more markedly than planned in the reporting period, which represents a risk of medium significance for us. The risk from collective bargaining negotiations became concrete with the conclusion of the collective bargaining agreement and it was already accounted for in the forecast starting on page 71 of the 2022 Annual Report.
There are pricing risks due to greater pressure in certain markets in the Express division as well as in other divisions, in particular in the Global Forwarding, Freight division, with the risk of lower freight rates. Overall, this risk is still of medium significance for the Group.
The Group’s overall opportunity and risk situation did not otherwise change significantly during the third quarter of 2023 compared with the situation described in the 2022 Annual Report beginning on page 72. Based upon the Group’s early-warning system, and in the estimation of its Board of Management, there are no identifiable risks for the Group that, individually or collectively, cast doubt upon the Group’s ability to continue as a going concern. Nor are any such risks apparent in the foreseeable future.
