Deutsche Post DHL reported Thursday weak earnings in its fourth quarter, despite higher revenues benefited mainly by international operations.
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For fiscal 2022, the company recorded improved results, but sees weak earnings for fiscal 2023. Over the medium term, it projects earnings growth.
Further, the company raised its dividend and expanded share buyback program.
Chief Financial Officer Melanie Kreis said, "The slowing macroeconomic growth momentum is reflected in our EBIT outlook. That is why we are acting particularly prudent in the first half of 2023 and focusing on our yield and cost management."
For fiscal 2023, the company projects EBIT to range from 6.0 billion euros to 7.0 billion euros citing three scenarios, in light of the continuing uncertainty about the course of an economic recovery.
In the favorable case of a recovery starting around mid-year, Deutsche Post DHL expects EBIT of around 7.0 billion euros for fiscal year 2023. EBIT would be around 6.5 billion euros in case of a recovery starting more towards year end. Meanwhile, in the least favorable case of no significant recovery in 2023, the Group predicts EBIT of at least 6.0 billion euros.
In fiscal 2022, EBIT was 8.44 billion euros, higher than the previous year.
Deutsche Post DHL again issued a medium-term guidance, expecting to be able to increase EBIT relative to 2023 again. The EBIT target for 2025 is set to more than 8 billion euros. The Group anticipates to generate cumulative free cash flow of 9 billion euros to 11 billion euros in the period from 2023 to 2025.
Further, the company said it will propose to the shareholders at the Annual General Meeting on May 4 an increase of the dividend to 1.85 euros per share from 1.80 euros per share paid last year.
In addition, the existing share buyback program 2022-24 will be increased by 1.0 billion euros, now totaling 3.0 billion euros. There is no change in the intention to conclude the program until the end of 2024.
By the year 2050, Deutsche Post DHL Group aims to achieve net-zero emissions logistics. ■