Deutsche Post Stock Down On Weak Q4 Results, FY24 Earnings View

(RTTNews) - Shares of DHL owner Deutsche Post were losing around 6 percent in the morning trading in Germany after the logistics major reported Wednesday weak profit and revenues in its fourth quarter.

Further, the company maintained dividend, and extended its share buyback program with additional 1 billion euros of shares. DHL also issued fiscal 2024 forecast for EBIT, a key earnings metric, and said it sees operating profit growth over the medium-term.

For 2024, DHL Group forecasts EBIT of between 6.0 billion euros and 6.6 billion euros, compared to 6.3 billion euros in fiscal 2023.

In its medium-term forecast for 2026, DHL Group anticipates an operating result of 7.5 billion euros to 8.5 billion euros.

Tobias Meyer, CEO DHL Group, said, "The year 2023 was characterized by a weak global economy and, above all, weak global trade. Even under these conditions, we achieved our targets for the year. … Major uncertainty factors such as volatility in demand and geopolitical crises will remain with us in 2024. However, we are very well positioned for the opportunities and challenges of 2024."

The company said its Board of Management and Supervisory Board will propose a dividend of 1.85 euros per share, same as last year, to shareholders at the Annual General Meeting on May 3.

The existing share buyback program till 2024 will be extended until 2025 and the volume was increased by 1 billion euros to 4 billion euros.

In its fourth quarter, consolidated net profit fell 26.5 percent to 981 million euros from last year's 1.34 billion euros. Earnings per share were 0.81 euro, down 25.7 percent from 1.09 euros a year ago.

EBIT fell 14.6 percent to 1.64 billion euros from last year's 1.92 billion euros.

Revenue for the quarter also declined 10.2 percent to 21.35 billion euros from 23.78 billion euros last year. International revenues fell 12.6 percent from last year to 15.66 billion euros.

In the quarter, Express revenues fell 6.7 percent to 6.56 billion euros, and revenues from Global Forwarding, Freight plunged 33 percent to 4.57 billion euros. Supply Chain revenues remained flat with last year, while revenues from eCommerce grew 7.6 percent and from Post & Parcel Germany went up 2.5 percent.

In Germany, Deutsche Post shares were trading at 39.35 euros, down 5.62 percent.

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