After a record year, Deutsche Post expects online trading to grow in 2021 and therefore with further increases in parcel volumes. The growth will “normalize” after the 2020 boom in the corona pandemic, the logistics group announced in Bonn on Tuesday, but the board of directors is still more optimistic about the future.
For the current year, the management expects an operating result (EBIT) of more than 5.6 billion euros. In the course of the preliminary figures in January, the group estimates were slightly lower at more than 5.4 billion euros. For the year 2023, the Bonn-based company has earnings before interest and taxes (EBIT) of 6.0 billion on the list.
In early trading, the Post share reached a record high, most recently it was up 2.40 percent at 44.40 euros. The price had already risen sharply the day before after the group had announced a share buyback program and a substantial dividend increase.
Analysts on Tuesday were not very surprised by the final numbers and the raised outlook. The optimistic medium-term goals of the logistics group were largely expected, commented analyst Daniel Roeska from the US analysis company Bernstein Research. According to analyst Christian Obst from Baader Bank, the outlook speaks “for a strong self-confidence” of the group.
The group had already published key data for 2020 in January. It was already clear that Deutsche Post had achieved a record operating result as a result of the 2020 pandemic. But the bottom line has also increased: to almost 3 billion euros after around 2.6 billion euros in the previous year. The result was only marginally below the analysts’ estimate.
Last year, the pandemic resulted in people ordering more goods on the Internet, also because of the restrictions in stationary retail. Especially in the parcel and express business of Deutsche Post, the shipment volumes increased. The Dax group was one of the winners of the crisis.
The management also wants the shareholders to participate in the positive development. On Monday, the group had already announced that it would buy back shares for up to one billion euros and sharply increase the distribution. The Bonn-based company is proposing a dividend of 1.35 euros per share for the past year. Last year, shareholders had to be content with a constant dividend of 1.15. The group had suspended the actually planned increase due to the uncertainties caused by the pandemic.
In the express business with international shipments, the group achieved a record EBIT margin last year. The high utilization of global capacities contributed to this, and Swiss Post had further refined its efficiency. The eCommerce Solutions division, which also includes international parcel shipments, posted a positive EBIT margin for the first time.
Deutsche Post experienced a certain headwind in the freight business: demand fell and transport capacities became scarcer, which was also due to the reduced international passenger flights. This meant that additional loading capacities were no longer required for the Post. The greatly reduced offer led to corresponding price and margin dynamics in the competition for available transport capacity. In the end, however, Swiss Post was able to compensate for declining volumes with rising prices, so that the freight sector also ended the year with improved profitability.
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Deutsche Post continues raise targets record year Post share record high