The structural transformation in letter mail business continues: as conventional letter mail volumes containing documents continue to decline, volumes of goods shipments in the mail and parcel network are growing. The Dialogue Marketing business unit underwent negative development, with the advertising spend for physical advertising mail declining compared with the previous year due to inflation, reluctance to buy and customer insolvencies. Despite cautious consumer sentiment in the German parcel market dampening the mood in online retail, parcel volumes increased.
Post & Parcel Germany: ongoing structural change shapes business performance
At €17,347 million, revenue in the Post & Parcel Germany division in the year under review exceeded the prior-year figure by 2.7%. The main reasons for this were the higher prices for business customers and increased volumes in national and international business with goods shipments. This was countered by a volume decline in national and international postal business caused by sustained structural change in the letter mail business. The discontinuation of the EINKAUFAKTUELL product and an adverse market development led to declining sales of advertising mail. At €4,868 million, revenue for the fourth quarter of 2024 in the Post & Parcel Germany division was up by 2.7% versus the prior-year period.
EBIT in the Post & Parcel Germany division in 2024 amounted to €821 million and was 5.6% below the prior-year figure. This included a positive net, non-recurring effect from developments in various legal disputes of around €70 million. Revenue growth in parcel business and goods shipping along with higher other operating income were unable to compensate for declining mail volumes and increased material and staff costs, caused particularly by collective bargaining agreements. Return on sales in the year under review was 4.7%. EBIT in the Post & Parcel Germany division in the fourth quarter of 2024 amounted to €326 million and was 18.9% below the prior-year figure. This was primarily due to wage increases under collective bargaining agreements and higher transport costs in peak season.
