08.03.2017
Deutsche Post AG DE0005552004
Deutsche Post AG: Deutsche Post DHL Group ends financial year 2016 with record earnings
DGAP-Media / 08.03.2017 / 07:00
Deutsche Post DHL Group ends financial year 2016 with record earnings
- Group meets its guidance with operating profit of EUR 3.5 billion
- Q4 strongest operating quarter in company history[1]
- Dividend increase to EUR 1.05 per share proposed
- Further EBIT increase to around EUR 3.75 billion forecast for 2017
- Carbon efficiency target for 2020 already met; new aim of zero emission
logistics by 2050
- CEO Frank Appel: "2016 was a very successful year for us."
Bonn, March 8, 2017: Deutsche Post DHL Group, the world's leading mail and
logistics company, concluded the 2016 financial year with record earnings1.
The Group's operating profit climbed by 45% to EUR 3.5 billion, delivering
the EBIT target for 2016. The Group's fourth-quarter EBIT of EUR 1.111
billion represented operationally the best quarterly result in company
history1. Deutsche Post DHL Group had already posted record figures in the
preceding quarters.
All four divisions contributed to the Group's strong performance in 2016.
The company continued to benefit from its outstanding market position in
global growth segments - particularly in the e-commerce business. EBIT in
the Post - eCommerce - Parcel (PeP) division increased to over EUR 1.4
billion compared with EUR 1.1 billion in the previous year. The DHL
divisions generated operating profit of EUR 2.4 billion compared with EUR
1.7 billion in 2015. The positive earnings trend reflects strong business
operations in all divisions as well as the absence of one-time charges
incurred in the previous year.
"2016 was a very successful year for us. The company has never before
achieved higher earnings in its current structure. We also invested
substantially in all four divisions and made strong progress in the
implementation of our Strategy 2020. Thanks to our targeted approach to e-
commerce, the entire Group is benefiting increasingly from the dynamic
international development in this segment. We are in an excellent position
to maintain our profitable growth," said Frank Appel, CEO of Deutsche Post
DHL Group.
Outlook: Further improvement in earnings expected in 2017, targets for 2020
confirmed
The company anticipates only moderate growth in the world economy during
the current year. Earnings are nonetheless expected to increase
significantly based on additional operating improvements in the divisions.
For 2017, Deutsche Post DHL Group is projecting a rise in Group EBIT to
around EUR 3.75 billion. The PeP division is expected to contribute
approximately EUR 1.5 billion to this figure. For the DHL divisions, the
company anticipates an EBIT contribution of around EUR 2.6 billion.
Deutsche Post DHL Group continues to expect operating profit to increase by
an average of more than 8% annually during the period from 2013 to 2020
(CAGR). The DHL divisions are expected to contribute to the improvement
with an average EBIT growth of 10% per year. At PeP, operating profit is
forecast to increase by an average of around 3% per year.
Sustainability: Carbon efficiency target reached ahead of schedule; zero-
emissions logistics aim announced for 2050
In 2008, Deutsche Post DHL Group set itself the Group-wide target of
improving carbon efficiency by 30% - including transportation services
provided by subcontractors - compared with 2007 levels, by the year 2020.
The Group already reached that target in the last financial year.
In the future, the company will focus its activities even more intensively
on emission-neutral logistics concepts. Deutsche Post DHL Group aims to
achieve net zero logistics-related emissions by 2050. Up to 2025, four
interim targets will be used to track progress with the implementation of
the new target. For instance, the company intends to increase its carbon
efficiency by 50% compared with the 2007 levels. Local air pollution
emissions will be reduced by using environmentally-friendly pick-up and
delivery solutions, including bicycle delivery and e-mobility options, for
70% of its own first and last mile services. The company also strives for
more than 50% of sales to incorporate green logistics solutions. In
addition, the Group will engage 80% of employees on environmental issues
with special GoGreen training sessions and will collaborate with partners
to plant one million trees each year.
Financial year 2016: Strong operating performance in all divisions
Group revenue fell by 3.2% year-on-year in 2016 to EUR 57.3 billion. In
addition to negative currency effects and lower fuel surcharges due to
falling oil prices, the decline reflects a change in the recognition of
revenue generated from a key customer contract in the Supply Chain
division. Adjusted for these effects, Group revenue rose by 2.8% over the
previous year. The German parcel business and the international express
business continued to generate dynamic growth.
Group EBIT was EUR 3.5 billion in 2016, up 44.8% over the prior-year figure
and within the target corridor of between EUR 3.4 and EUR 3.7 billion. The
EBIT contribution of the Post - eCommerce - Parcel division was over EUR
1.4 billion (2015: EUR 1.1 billion). The DHL divisions generated operating
profit of EUR 2.4 billion (2015: EUR 1.7 billion). Expenses for Corporate
Center/Other were stable at EUR 359 million.
Due to one-off effects, the Group's tax rate fell as expected to 11.2%
(2015: 16.4%). Consolidated net profit increased to EUR 2.6 billion (2015:
EUR 1.5 billion). Basic earnings per share increased at a corresponding
rate from EUR 1.27 in the previous year to EUR 2.19.
Dividend: Increase to EUR 1.05 per share proposed
In light of the Group's strong earnings performance, the Board of
Management and the Supervisory Board will propose a dividend increase of
24% to EUR 1.05 per share at the Annual General Meeting on April 28, 2017.
If approved by the shareholders, the total payout would be approximately
EUR 1.27 billion, reflecting a payout ratio of 48%. This is within the
range of 40% to 60% communicated by the company in 2010 as part of the
finance strategy introduced at that time.
Capital expenditure: Group reinforces its foundation for growth with
further significant investments
To further strengthen its foundation for long-term profitable growth,
Deutsche Post DHL Group invested in all four divisions in 2016. Capital
expenditure rose by 2.5% year-on-year to EUR 2.1 billion. The Group, for
example, expanded the parcel infrastructure - mostly in Germany but also
internationally. Additional focus areas were the modernization of the
aircraft fleet and expansion of global and regional hubs of DHL Express.
For 2017, Deutsche Post DHL Group plans to increase capital expenditure to
around EUR 2.3 billion.
Cash flow performance impacted by pension funding
Operating cash flow dropped to EUR 2.4 billion in 2016 (2015: EUR 3.4
billion), and free cash flow declined to EUR 444 million (2015: EUR 1.7
billion). The decrease reflects the funding of pension obligations in the
amount of EUR 1 billion. Excluding this factor, the free cash flow was EUR
1.4 billion. The Group met its target of at least covering the dividend of
EUR 1.03 billion paid in 2016. For 2017, Deutsche Post DHL Group forecasts
free cash flow of more than EUR 1.4 billion.
Post - eCommerce - Parcel: 1.2 billion shipments sets new parcel record in
Germany
Revenue in the Post - eCommerce - Parcel division grew by 4.1% to EUR 16.8
billion. Adjusted for currency effects, revenue increased by 4.4% compared
with the prior year. In addition to the postage stamp price increase
implemented at the beginning of the year, the division's good performance
was driven above all by volume and revenue increases in the eCommerce -
Parcel business unit. EUR 7.1 billion of the division's revenue was
generated by eCommerce - Parcel, which continued to see strong growth of
11.2% over the prior-year period. The increase was based on revenue gains
of 10.1% for Parcel Germany, 15.1% for Parcel Europe and 12.5% for
eCommerce. In Germany alone, the PeP division delivered more than 1.2
billion parcels in 2016 - an increase of 9.3% and a new record.
The increase is yet another indication of the Group's successful
positioning in the dynamically growing e-commerce market, both in Germany
and, to an increasing extent, internationally. In order to further build on
its position, the Group continues to invest heavily in the development of
its domestic and international parcel infrastructure. Last year, the
company expanded its parcel and e-commerce activities to markets in the
U.K., France, Hungary, Slovenia, Scandinavia, Finland and the Baltic
states, and is now active in 21 European countries. In addition, e-commerce
activities were stepped up outside of Europe, in part through logistics
centers in the United States, Mexico and India and through last mile
delivery in Thailand.
Revenue in the Post business unit was roughly level year-on-year at EUR
9.74 billion (2015: EUR 9.78 billion). The increase in letter postage
prices at the beginning of the year almost fully offset the negative impact
of the structural volume decline in the Mail Communication and Dialogue
Marketing segments.
The positive business performance at PeP is also reflected in operating
profit. The division increased EBIT by 30.8% to more than EUR 1.4 billion.
It should be noted, however, that the prior-year figure contained one-off
charges associated in particular with the postal strike in Germany. Even
after adjusting for this factor, however, the increase in earnings was
substantial. Earnings were primarily fueled by persistent growth in the
eCommerce and Parcel businesses, the increase in postage stamp prices and
disciplined cost management. Investments in the international parcel
business held back an even greater increase in EBIT.
Express: Further growth in revenue and earnings; margin rises to 11.0%
The Express division continued to perform well in terms of volumes, revenue
and earnings in 2016. Revenue increased by 2.7% to EUR 14.0 billion. Growth
in revenue was held back by negative currency effects and lower fuel
surcharges. Excluding these effects, divisional revenue increased by 6.3%.
The success of DHL Express was again mainly attributable to strong growth
in time-definite international (TDI) shipments, reflecting a volume
increase of 7.6%, coupled with effective yield management.
Divisional EBIT increased by 11.3% to EUR 1.5 billion. Driven by strong TDI
growth, pricing initiatives and network enhancements, DHL Express succeeded
in increasing its profitability to a new record level. The EBIT margin
improved to 11.0% (2015: 10.2%).
Global Forwarding, Freight: Earnings continue on an upward trajectory
The Global Forwarding, Freight division made steady improvements in
operating performance in 2016. Reported revenue declined by 7.7% to EUR
13.7 billion. Adjusted for negative currency effects and lower fuel
surcharges, the decrease was only 2.4%. In the fourth quarter, the division
registered a recovery in freight volumes. The upward trend was not
reflected in revenue performance due to generally still low selling rates
in air and ocean freight. At the same time, the Group experienced a
substantial increase in buying rates, which had a negative impact on
fourth-quarter gross profit.
In terms of operating profit, Global Forwarding, Freight made significant
progress. EBIT improved from a loss of EUR 181 million in the previous year
to EUR 287 million in 2016. The increase was aided by the absence of
negative one-off effects recognized in 2015 in connection with the
division's IT renewal. However, EBIT at Global Forwarding, Freight also
grew substantially even after adjusting for these effects.
Supply Chain: New contracts worth EUR 1.5 billion concluded
Revenue in the Supply Chain division decreased by 11.6% to EUR 14.0 billion
in 2016. After adjusting for negative currency effects, lower fuel
surcharges and the effect of the change in revenue recognition in the
fourth quarter of 2015 due to revised terms in the contract with the
National Health Service (NHS), a major U.K. account, revenue increased by
2.5% over the previous year. Supply Chain continued to generate new
business. The division concluded additional contracts with both new and
existing customers amounting to EUR 1.5 billion, compared with EUR 1.35
billion in the previous year.
Operating profit in the Supply Chain division improved by 27.4% to EUR 572
million versus the preceding year. This strong growth was attributable
largely to positive effects from the division's optimization program. The
EBIT margin improved by 1.3 percentage points year-on-year to 4.1%, placing
it within the target corridor of 4% to 5% for the first time.
Fourth quarter of 2016: Company again sets new earnings record
Deutsche Post DHL Group registered a slight increase in total Group revenue
to EUR 15.4 billion in the fourth quarter (+0.5%). Excluding negative
currency effects and lower fuel surcharges, Group revenue was up by 3.2%
over the previous year.
Group EBIT increased by EUR 154 million in the final quarter to EUR 1.111
billion. This was the best quarterly operating result in the company's
history[2]. In the fourth quarter, consolidated net profit grew to EUR 841
million (2015: EUR 670 million), mainly due to the increase in EBIT. This
equates to basic earnings per share of EUR 0.70 (2015: EUR 0.55).
- End -
Note to editors: An interview with CEO Frank Appel can be found at
www.dpdhl.com. The Group's investor conference call will be webcast
beginning at 2 p.m. (CET).
Media contact
Deutsche Post DHL Group
Media Relations
Dan McGrath/Christina Neuffer/
Phone: +49 228 182-9944
E-mail: [email protected]
On the Internet: www.dpdhl.de/presse
Follow us: www.twitter.com/DeutschePostDHL
Deutsche Post DHL Group is the world's leading mail and logistics company.
The Group connects people and markets and is an enabler of global trade. It
aspires to be the first choice for customers, employees and investors
worldwide. The Group contributes to the world through responsible business
practices, corporate citizenship and environmental activities. By the year
2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.
Deutsche Post DHL Group is home to two strong brands: Deutsche Post is
Europe's leading postal service provider. DHL offers a comprehensive range
of international express, freight transport, and supply chain management
services, as well as e-commerce logistics solutions. Deutsche Post DHL
Group employs approximately 510,000 people in over 220 countries and
territories worldwide. The Group generated revenues of more than 57 billion
Euros in 2016.
Die Post für Deutschland. The logistics company for the world.
Group financial highlights for 2016
in EUR millions 2015 2016 Change in % Revenues 59,230 57,334 -3.2 - of which international 41,737 39,424 -5.5 Profit from operating activities (EBIT) 2,411 3,491 44.8 Consolidated net profit1) 1,540 2,639 71.4 Basic earnings per share (in EUR) 1.27 2.19 72.4 Diluted earnings per share (in EUR) 1.22 2.10 72.1Divisional revenues for 2016 in EUR millions 2015 Share of total 2016 Share of total Change revenues in % revenues in % in % Post - eCommerce - 16,131 27.2 16,797 29.3 4.1 Parcel Express 13,661 23.1 14,030 24.5 2.7 Global Forwarding, 14,890 25.1 13,737 24.0 -7.7 Freight Supply Chain 15,791 26.7 13,957 24.3 -11.6 Corporate Center/ -1,243 n.a. -1,187 n.a. 4.5 Other and consolidation Group 59,230 100.0 57,334 100.0 -3.2Divisional EBIT for 2016 in EUR millions 2015 2016 Change in % Post - eCommerce - Parcel 1,103 1,443 30.8 DHL 1,659 2,407 45.1 - Express 1,391 1,548 11.3 - Global Forwarding, Freight -181 287 >100 - Supply Chain 449 572 27.4 Corporate Center/Other and -351 -359 -2.3 consolidation Group 2,411 3,491 44.81) After non-controlling interests. Group financial highlights for the fourth quarter of 2016 in EUR millions Q4 Q4 Change 2015 2016 in % Revenues 15,339 15,410 0.5 - of which international 10,484 10,520 0.3 Profit from operating activities (EBIT) 957 1,111 16.1 Consolidated net profit1) 670 841 25.5 Basic earnings per share (in EUR) 0.55 0.70 27.3 Diluted earnings per share (in EUR) 0.53 0.67 26.4Divisional revenues in the fourth quarter of 2016 in EUR millions Q4 Share of total Q4 Share of total Change 2015 revenues in % 2016 revenues in % in % Post - eCommerce - 4,513 29.4 4,640 30.1 2.8 Parcel Express 3,638 23.7 3,830 24.9 5.3 Global Forwarding, 3,736 24.4 3,623 23.5 -3.0 Freight Supply Chain 3,799 24.8 3,607 23.4 -5.1 Corporate Center/ -347 n.a. -290 n.a. 16.4 Other and consolidation Group 15,339 100.0 15,410 100.0 0.5Divisional EBIT in the fourth quarter of 2016 in EUR millions Q4 Q4 Change 2015 2016 in % Post - eCommerce - Parcel 487 489 0.4 DHL 595 746 25.4 - Express 319 435 36.4 - Global Forwarding, Freight 99 104 5.1 - Supply Chain 176 206 17.0 Corporate Center/Other and -124 -123 0.8 consolidation Group 957 1,111 16.11) After non-controlling interests. [1] based on the current company structure. [2] based on the current company structure End of Media Release --------------------------------------------------------------------------- Issuer: Deutsche Post AG Key word(s): Enterprise 08.03.2017 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Deutsche Post AG Charles-de-Gaulle-Straße 20 53113 Bonn Germany Phone: +49 (0)228 182 - 63 100 Fax: +49 (0)228 182 - 63 199 E-mail: [email protected] Internet: www.dpdhl.com ISIN: DE0005552004 WKN: 555200 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange End of News DGAP Media --------------------------------------------------------------------------- 551313 08.03.2017
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Deutsche Post AG ISIN: DE0005552004 können Sie bei EQS abrufen
Logistik/Verkehr , 555200 , DHL , XETR:DHL