- Q4 strongest operating quarter in company history1
- 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."
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.
Source: Deutsche Post DHL