Deutsche Post DHL reported a surge in third-quarter earnings and revenue across all its business units and raised its outlook for the next two years as the global economy shifted to post-pandemic e-commerce.
Revenue increased by 23.5% to USD 23.1 billion, operating profit jumped 28.6% to USD 2.1 billion, and earnings per share more than doubled to USD 3.34.
DHL Express increased year-on-year revenue by 21.4% and EBIT by about 30%.
The global air and ocean freight forwarding unit increased revenue by 53.3% and doubled its EBIT results.
The company said that its crucial profitability metrics were better in the first nine months of 2021 than what it had reported in 2020, which was also a record year for Deutsche Post DHL.
The company also raised its 2021 earnings guidance, and in 2023, the Bonn-based company said it expects to post an EBIT of USD 9.24 billion, up from earlier projections of USD 8.55 billion.
The company’s performance is watched as a proxy for international transport and trade conditions. The upgrade guidance for the next two years indicates a very optimistic outlook for global e-commerce volumes to top pre-pandemic performance.
The Covid-driven work-from-home environment has shifted some of the global consumer practices towards a different logistical situation. Online shopping and e-commerce started to be a part of people’s everyday lives.
Ocean shipping crunch issues have caused land and air freight to have a more active role in delivering consumer products and input materials.
With the possibility of supply shortage running until at least the second half of 2022, Deutsche Post DHL’s earnings should continue to deliver record performance.