In This Article:
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EBIT: EUR5,886 million for the full year 2024.
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Free Cash Flow: Approximately EUR3 billion.
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Dividend: Stable at EUR1.85 per share.
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Share Buyback Program: Increased by EUR2 billion and extended by a year.
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Supply Chain EBIT: Exceeded EUR1 billion for the first time.
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Express Division Margin: 16% in Q4 2024.
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Organic Growth in Supply Chain: 5% with a 6% EBIT margin.
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Guidance for 2025 EBIT: More than EUR6 billion.
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Cash Flow Guidance for 2025: EUR3 billion.
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ROIC Focus: Proposed addition to Board's long-term incentive targets.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutsche Post AG (DHLGY) reported a strong EBIT for the year at EUR5,886 million, with a particularly robust performance in Q4.
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The company maintained a high level of cash conversion, generating approximately EUR3 billion in free cash flow.
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Deutsche Post AG (DHLGY) increased its share buyback program by EUR2 billion and extended it by a year, demonstrating a commitment to shareholder returns.
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The supply chain division exceeded EUR1 billion in EBIT for the first time, indicating strong structural growth.
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The company has a strategic focus on high-growth geographies, which are less impacted by trade barriers, providing a positive outlook for future growth.
Negative Points
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The macroeconomic environment remains volatile, impacting the company's ability to provide specific guidance on achieving its EUR7 billion EBIT target.
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The company faces challenges in the Post and Parcel Germany division due to declining mail volumes and cost inflation, necessitating workforce reductions.
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Deutsche Post AG (DHLGY) anticipates a seasonal drag in Q1 2025 due to the late occurrence of Easter, affecting volume growth.
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The company is exposed to potential disruptions from changes in trade policies, such as the de minimis rule in the US, which could impact shipment volumes.
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The freight forwarding division continues to underperform compared to peers, with a need to improve its conversion rate to meet industry standards.
Q & A Highlights
Q: Can you clarify the 2025 guidance and its components, particularly regarding P&P EBIT and recent policy changes in Germany? A: The 2025 guidance is based on the momentum from 2024 and does not account for recent short-term changes in Germany. The impact of these changes is uncertain, and we don't expect a significant effect this year. The reorganization of the legal structure is progressing well, aligning with management structure and strategic goals. (Tobias Meyer, CEO)