Dear Readers,
Thirty years ago, Deutsche Post became a stock corporation, marking the beginning of a new era of private enterprise and a milestone in the journey from national postal service to a global logistics group. Back then, we primarily delivered letters in Germany. Today, DHL Group with its five divisions is active in almost every part of the world. We deliver practically anything, anywhere – from online purchases, to urgently needed medicines, to machinery. Customers in more than 220 countries and territories place their trust in us.
The 2024 fiscal year was another volatile period, and a broad upturn in world trade once again failed to materialize. Thanks to the positive performance in the second half of the year, we increased our full-year revenue by 3.0% year on year to €84.2 billion. Operating profit (EBIT) and free cash flow were in line with our revised guidance and again significantly exceeded pre-pandemic levels. We also recorded a strong fourth quarter with substantial growth in revenue and earnings. We ended the fiscal year on a positive note and are determined to continue this course in 2025.
What was behind this achievement in a difficult environment? Firstly, our approximately 600,000 employees all around the world. Their commitment, energy and hard work played a major part in our results and deserve our thanks. Moreover, our outstanding service quality meant that, outside Post & Parcel Germany, we were able to adjust our prices in line with the market. On top of this, we are seeing the rewards for being early to recognize the enormous potential of e-commerce many years ago and for continuing to grow our business in this area. Last but not least, we have flexibly adjusted capacity in our global network to ensure a high level of efficiency.
“We have flexibly adjusted capacity in our global network to ensure a high level of efficiency.”
The global economic parameters are visibly shifting. Trade conflicts, wars and geopolitical tensions mean that, although world trade is still growing roughly in step with the economy, it is no longer outpacing global GDP. Combined with the sometimes skeptical view of European stocks on the part of many investors, this meant that our share price performance was disappointing in the past year.
At the same time, however, the changed environment is making supply chains more complex. Many companies want to better diversify their risks and spread warehouses and production more widely around the world. While trade between China and the United States has declined, there is still major growth potential – often in precisely those areas where DHL Group has a high market share. This opens opportunities for our company: our unusually extensive network makes us the perfect partner for our customers in this scenario. We offer best-in-class logistics solutions for almost all industries and needs. And we know the local requirements and conditions for logistics worldwide.
To make the most of our opportunities as a global logistics provider, we presented our Strategy 2030 in the reporting period. With this strategy, we are taking our focus on fast-growing sectors and geographies to the next level. Among other things, we will further step up our logistics for pharmaceuticals, medical devices, renewable energy and electrification, as well as improving our service quality even more. We have also made sustainability an integral part of our strategy framework. Today, we already go further than any other logistics company in helping customers to decarbonize their supply chains, future-proofing their businesses in the process. We firmly believe that low-emission logistics will become an important competitive factor. After all, if we want to preserve a livable planet for everyone, there is no getting away from curbing climate change. That is why DHL Group’s ambitious goal remains to cut greenhouse gas emissions from logistics to net zero by 2050, while growing our business at the same time.
“With Strategy 2030, we are taking our focus on fast-growing sectors and geographies to the next level.”
I would like to offer my sincere thanks to you, our shareholders, for your trust and support. Despite the sluggish economy, we will be able to propose an unchanged dividend to you at the Annual General Meeting on May 2, 2025. Over the coming years, we plan to grow further and invest in the logistics markets of the future, keeping a close eye on efficiency and costs as we do so. We are ready for more.
Tobias Meyer
Chief Executive Officer