EQS-Adhoc
Deutsche Post AG revises guidance for fiscal year 2024
- Deutsche Post revises 2024 EBIT guidance to €5.8B.
- B2C growth expected; B2B and mail volumes remain weak.
- Capital expenditure forecast reduced to €3.0-3.2B.
EQS-Ad-hoc: Deutsche Post AG / Key word(s): Change in Forecast 30/10/2024 |
Disclosure of inside information pursuant to Article 17 MAR
The Board of Management of Deutsche Post AG has today reviewed the current business development and the resulting insights for the remainder of the year.
In the domestic parcel businesses, the seasonal acceleration of e-commerce deliveries to consumers (B2C, Business-to-Consumer) appears to materialize as expected from the end of September. However, B2B volumes continue to be characterized by weak economic dynamics. Additionally, the decline in letter volumes was yoy higher in the third quarter.
Based on today's review, the Board of Management continues to expect that the Group will benefit from a seasonal increase in B2C shipment volumes until the end of the year. However, for B2B and mail volumes there is, based on the trading in October, currently no indication of a better development. Also, in the air freight forwarding business margins stay below expectations, despite some seasonal acceleration of volumes.
Therefore, the Board of Management has decided to adjust the Group EBIT guidance for the year 2024 to more than EUR 5.8 billion (previously: EUR 6.0-6.6 billion). The DHL divisions are expected to contribute more than EUR 5.5 billion (previously: more than EUR 5.7 billion) and the Post & Parcel Germany division around EUR 0.8 billion (previously: more than EUR 0.8 billion).
In line with market developments, the Group has also reduced the expected capital expenditure (excl. leases) for the full year 2024 to EUR 3.0-3.2 billion (previously: EUR 3.0-3.6 billion). Considering a year-to-date increase in working capital, especially in the Forwarding, Freight division, and the adjustment of investments, the Group expects a continued high full year 2024 free cash flow (excl. Net M&A) of now EUR 2.8-3.0 billion (previously: around EUR 3.0 billion).