07.03.2018
Deutsche Post AG DE0005552004
Deutsche Post AG: Deutsche Post DHL Group meets 2017 EBIT-guidance
DGAP-Media / 07.03.2018 / 07:00
Deutsche Post DHL Group meets 2017 EBIT-guidance
- EBIT increases by 7.2% to EUR 3.74 billion
- Group revenue up by 5.4% to EUR 60.4 billion
- Dividend increase to EUR 1.15 per share proposed
- Forecast for 2018: EBIT set to increase to about EUR 4.15 billion, EBIT
target for 2020 specified at more than EUR 5 billion
- CEO Frank Appel: "In 2017 we took another major step on the road to
achieving our strategic and financial goals for 2020"
Bonn, March 7, 2018: Deutsche Post DHL Group, the world's leading mail and
logistics company, can look back on another very good financial year. The
Group's operating profit climbed by 7.2% to EUR 3.74 billion in the 2017
financial year. With this, the company attained its earnings target of
around EUR 3.75 billion. As forecast, the Post - eCommerce - Parcel (PeP)
division contributed EUR 1.5 billion to operating profit. Also as expected,
the DHL divisions generated total EBIT of EUR 2.6 billion. Group revenue was
up by 5.4% to EUR 60.4 billion, with all four divisions contributing to the
increase. The DHL Express division and the German and international Parcel
and eCommerce businesses continued to see particularly dynamic growth.
"Thanks to successful business development in all four divisions, especially
outside Germany, our company has registered another very good year. In 2017
we took another major step on the road to achieving our strategic and
financial goals for 2020. With our international focus and our firm
orientation towards the fast-growing e-commerce market, we implemented the
right measures early on and are now positioned better than ever for future
growth. At the same time, we are increasingly leveraging the digitalization
opportunities that present themselves in all four divisions and expanding
our foundation for a successful future," said Frank Appel, CEO of Deutsche
Post DHL Group.
Outlook: Further EBIT increase expected in 2018, EBIT target for 2020
specified
Deutsche Post DHL Group has applied the IFRS 16 accounting standard with
effect from the beginning of 2018. As announced, this change in the
recognition of leases will result in an increase in Group EBIT of about EUR
150 million per financial year. It is also expected that the solid pace of
economic expansion, further business growth and operational improvements in
the individual divisions in particular will lead to increased earnings in
2018: Deutsche Post DHL Group forecasts a rise in EBIT to approximately EUR
4.15 billion. The PeP division is expected to contribute around EUR 1.5
billion to this total. For the DHL divisions, the company anticipates an
EBIT contribution of around EUR 3.0 billion.
Due to the change effected by IFRS 16, the company refined its medium-term
earnings targets and is specifying absolute figures in this area for the
first time: Deutsche Post DHL Group expects EBIT of more than EUR 5 billion
in the 2020 financial year, to which PeP will contribute some EUR 1.7
billion and the DHL divisions approximately EUR 3.7 billion.
Dividend: Increase to EUR 1.15 per share proposed
The increase in revenue and earnings in 2017 is also reflected in improved
net profit for the year. Consolidated net profit after non-controlling
interests was EUR 2.7 billion (2016: EUR 2.6 billion). Basic earnings per
share saw a corresponding increase from EUR 2.19 in 2016 to EUR 2.24 in
2017. Net profit increased at a slower rate than EBIT, due primarily to a
higher tax rate. After declining to 11.2% in the previous year due to
one-off effects, the tax rate was 14.3% in 2017.
In light of the Group's positive earnings performance, the Board of
Management and the Supervisory Board will propose a dividend increase of
9.5% to EUR 1.15 per share at the Annual General Meeting on April 24, 2018.
If approved by the shareholders, the total payout would be approximately EUR
1.4 billion, reflecting a payout ratio of 52%. This is within the range of
40% to 60% communicated in the company's finance strategy introduced in
2010.
Capital expenditure and cash flow increased, debt reduced
Deutsche Post DHL Group invested heavily in all four divisions once again in
2017. The company is thus reinforcing its foundation so that it can continue
its profitable growth trajectory in the future. For example, the company
expanded its parcel infrastructure both in Germany and internationally. The
company also expanded and modernized the hubs and aircraft fleet at DHL
Express. As planned, capital expenditure at DPDHL Group amounted to EUR 2.3
billion in 2017 (+9.8%); the company invested well over EUR 1 billion in the
final quarter alone. The Group is forecasting capital expenditure of around
EUR 2.5 billion in 2018.
The improvement in the Group's operating performance in 2017 also had a
positive effect on cash generation. However, both the cash flow figures for
2017 and the reference values for 2016 were impacted by one-off effects.
Operating cash flow in 2017 increased by EUR 858 million to EUR 3.3 billion.
This reflects the outflow of EUR 495 million for the funding of pension
obligations in the United Kingdom. The prior-year figure included the
funding of pension obligations in Germany in the amount of EUR 1.0 billion.
Free cash flow in 2017 improved by EUR 988 million to EUR 1.4 billion. After
adjusting for the aforementioned funding of pension obligations, free cash
flow came in at EUR 1.9 billion, exceeding the forecast. The sale of
Williams Lea Tag Group had a positive effect in 2017, resulting in a net
inflow of EUR 286 million. The prior-year figure reflected an outflow of EUR
278 million for the acquisition of UK Mail. For 2018, Deutsche Post DHL
Group forecasts free cash flow of more than EUR 1.5 billion.
The Group's net debt fell to EUR 1.9 billion as of December 31, 2017 (2016:
EUR 2.3 billion), due partly to the strong cash flow performance.
Post - eCommerce - Parcel: Further growth in Parcel and eCommerce businesses
Revenue in the Post - eCommerce - Parcel division increased by 6.4% to EUR
18.2 billion in 2017. The division's positive performance was primarily
attributable to growth in volumes and revenue in the eCommerce - Parcel
business unit.
Revenue at Parcel Germany increased by 4.3%. PeP delivered more than 1.3
billion parcels in Germany in 2017 overall, an increase of 7.8% and a new
record. Revenue in the eCommerce business unit climbed by 10.3%. However,
the most substantial gain was posted by Parcel Europe, where revenue grew by
65.4%. A key driver of the increase was the first-time inclusion of the UK
Mail results (2017 revenue: EUR 536 million). Revenue at Parcel Europe also
increased by a substantial 18.3% after adjusting for this effect, reflecting
the steady development and expansion of the parcel infrastructure in Europe.
Parcel Europe now operates in 26 countries (including Germany) following the
recent expansion of its activities to include the Bulgarian, Irish, Croatian
and Romanian markets.
In the Post business unit, revenue was stable at EUR 9.7 billion (-0.1%).
The structural volume declines in the Post business were largely offset in
2017 by good development in the Dialogue Marketing segment and additional
mailing volumes as a result of the elections in Germany.
In the PeP division, operating profit increased by 3.9% over the prior-year
level to EUR 1.5 billion. The principal factors contributing to the increase
were growth in the German Parcel business, stable Post revenues and
disciplined cost management, while earnings growth was held back by further
investments in the international Parcel network and the eCommerce business.
Express: Success story continues, margin climbs to 11.5%
The upward revenue and earnings trend in the Express division continued in
2017. Revenue rose by 9.5% on the prior year to EUR 15.0 billion.
Particularly encouraging was the fact that the division registered growth
across all regions. This dynamic performance was driven once again by the
international time-definite (TDI) delivery business, where daily volumes
increased by 9.9% year on year.
The volume increase will enable the division to utilize its unique global
express network even more efficiently. Operating profit grew by 12.4% to EUR
1.7 billion on the back of strict yield management and continuous
improvements in the network. The operating margin rose to 11.5%, up from
11.2% in the prior year.
Global Forwarding, Freight: Revenue and earnings grow
The performance of Global Forwarding, Freight improved over the course of
the year. Revenue increased by 5.4% to EUR 14.5 billion in 2017. The
division registered significant volume growth in both air and ocean freight.
Road and rail transport also developed positively in Europe, particularly in
Germany.
The division's EBIT increased by 3.5% to EUR 297 million, although margins
in air and ocean freight came under appreciable pressure particularly in the
first half of 2017 due to the considerable increase in freight rates. In the
second half of the year, the division was increasingly able to pass on the
higher prices to its customers and with this significantly improve earnings
in the last six months.
Supply Chain: Continued strong trend in new business
Revenue in the Supply Chain division increased by 1.4% to EUR 14.2 billion
in 2017. Adjusted for negative currency effects, the year-on-year increase
in revenue amounted to 4.6%. Once again, Supply Chain successfully generated
new business. The division concluded additional contracts worth EUR 1.5
billion with both new and existing customers during 2017.
Operating profit declined by 3.0% to EUR 555 million, as the positive
effects from the expanding business and the successful conclusion of the
division's optimization program were not sufficient to offset the one-off
effect resulting from a write-down of customer relationship assets.
Adjusting for this negative effect, EBIT improved by 2.6%.
Fourth quarter: Strong year end
Deutsche Post DHL Group registered an increase of 4.5% in total Group
revenue to EUR 16.1 billion in the fourth quarter. All four divisions
contributed to the improvement. Operating profit increased at an even
greater rate, advancing by 6.3% to EUR 1.2 billion. Consolidated net profit
after non-controlling interests declined by 0.5% to EUR 837 million in the
fourth quarter due to a higher tax rate. Basic earnings per share decreased
to EUR 0.69 in line with the decline in net profit.
- End -
Note to editors: An interview with CEO Frank Appel can be found at
www.dpdhl.com. The Group's investor webcast will be streamed from 2 p.m. on
our website. The DPDHL Group Non-Financial Report can be found within the
Corporate Responsibility Report.
Media contact
Deutsche Post DHL Group
Media Relations
Christina Neuffer
Tel.: +49 228 182-9944
E-mail: [email protected]
On the Internet: www.dpdhl.de/press
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
practice, 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 520,000 people in over 220 countries and territories
worldwide. The Group generated revenues of more than 60 billion Euros in
2017.
Die Post für Deutschland. The logistics company for the world.
Group financial highlights for 2017
in EUR millions 2016 2017 Change
in %
Revenues 57,334 60,444 5.4
- of which international 39,424 42,039 6.6
Profit from operating activities (EBIT) 3,491 3,741 7.2
Consolidated net profit1) 2,639 2,713 2.8
Basic earnings per share (in EUR) 2.19 2.24 2.3
Diluted earnings per share (in EUR) 2.10 2.15 2.4
Divisional revenues for 2017
in EUR millions 2016 Share of total 2017 Share of total Chang-
revenues in % revenues in % e in
%
Post - 17,078 29.8 18,168 30.1 6.4
eCommerce -
Parcel2)
Express2) 13,748 24.0 15,049 24.9 9.5
Global 13,737 24.0 14,482 24.0 5.4
Forwarding,
Freight
Supply Chain 13,957 24.3 14,152 23.4 1.4
Corporate -1,186 n.a. -1,407 n.a. -18.6
Center/Other
and
consolidation
Group 57,334 100.0 60,444 100.0 5.4
Divisional EBIT for 2017
in EUR millions 2016 2017 Change
in %
Post - eCommerce - Parcel2) 1,446 1,502 3.9
DHL2) 2,404 2,587 7.6
- Express2) 1,544 1,736 12.4
- Global Forwarding, Freight 287 297 3.5
- Supply Chain 572 555 -3.0
Corporate Center/Other and -358 -349 2.5
consolidation
Group 3,491 3,741 7.2
1) After non-controlling interests
2) Prior-year adjusted
Group financial highlights for the fourth quarter of 2017
in EUR millions Q4 Q4 Change
2016 2017 in %
Revenues 15,410 16,109 4.5
- of which international 10,520 11,025 4.8
Profit from operating activities (EBIT) 1,111 1,181 6.3
Consolidated net profit1) 841 837 -0.5
Basic earnings per share (in EUR) 0.70 0.69 -1.4
Diluted earnings per share (in EUR) 0.67 0.64 -4.5
Divisional revenues in the fourth quarter of 2017
in EUR millions Q4 Share of total Q4 Share of total Chang-
2016 revenues in % 2017 revenues in % e in
%
Post - 4,710 30.6 5,052 31.4 7.3
eCommerce -
Parcel2)
Express2) 3,759 24.4 4,059 25.2 8.0
Global 3,623 23.5 3,791 23.5 4.6
Forwarding,
Freight
Supply Chain 3,607 23.4 3,619 22.5 0.3
Corporate -289 n.a. -412 n.a. -42.6
Center/Other
and
consolidation
Group 15,410 100.0 16,109 100.0 4.5
Divisional EBIT in the fourth quarter of 2017
in EUR millions Q4 Q4 Change
2016 2017 in %
Post - eCommerce - Parcel2) 490 510 4.1
DHL2) 746 806 8.0
- Express2) 434 499 15.0
- Global Forwarding, Freight 104 123 18.3
- Supply Chain 206 184 -10.7
Corporate Center/Other and -123 -135 -9.8
consolidation
Group 1,111 1,181 6.3
1) After non-controlling interests
2) Prior-year adjusted
End of Media Release
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Key word(s): Enterprise
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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
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