Ad hoc: Deutsche Post AG exceeds expectations on Q1 2021 and raises guidance for 2021
Disclosure of inside information pursuant to Article 17 MAR
Management has today assessed the preliminary group results for the month of March and hence Q1 2021 as well as the outlook for the remainder of the year.
The positive development of the group's businesses seen in Q4 2020 has continued well through the first quarter 2021. In the first three months of the year the B2C shipment volumes remained high in all networks while the recovery in the B2B businesses continued. For Q1 2021 the EBIT performance is forming out as follows:
Preliminary group EBIT reached around EUR 1.9 billion in Q1 2021 (Q1 2020: EUR 592 million). The previous year's result included a one-time effect of EUR -234 million in the context of StreetScooter. In last year's Q1 numbers the company quantified the initial impact of the pandemic, this practice was not maintained. There were no one-time effects recorded in Q1 2021.
The divisional results in detail:
The Express division reached EBIT in the first quarter of around EUR 955 million compared to previous year's Q1 of EUR 393 million.
EBIT in Global Forwarding, Freight stood at around EUR 215 million in Q1 2021, clearly above previous year's Q1 of EUR 73 million.
EBIT at Supply Chain came in at around EUR 165 million in Q1 2021. It was at EUR 105 million in Q1 2020.
Also, eCommerce Solutions recorded Q1 2021 EBIT of around EUR 115 million, clearly above last year's Q1 result of EUR 6 million.
Finally, EBIT in Post & Parcel Germany in Q1 2021 was around EUR 555 million (Q1 2020: EUR 334 million).
Group Functions recorded a result of around EUR -100 MIO in Q1 2021; last year's Q1 reached EUR -319 MIO including the burden of EUR 234 million in the StreetScooter context.
The continued positive business development is underpinned by a strong development of cash flow; free cash flow in Q1 2021 amounted to around EUR 1.0 billion. In Q1 2020 this figure was still negative at EUR -409 million.
In light of the strong earnings momentum, management will introduce a revised detailed guidance with the release of the full Q1 2021 reporting due May 5th 2021.
In the meantime the previous guidance is adjusted as follows:
Group EBIT for 2021 is now expected to be 'significantly above' EUR 5.6 billion (so far: more than EUR 5.6 billion). Equally, the result for the DHL divisions in now seen 'significantly above' EUR 4.5 billion (so far: around EUR 4.5 billion). EBIT for the Post & Parcel Germany division is no longer expected at around EUR 1.6 billion but 'above' EUR 1.6 billion. The expectation of a Group Functions EBIT of around EUR -0.4 billion is unchanged.
Full year 2021 Free Cash Flow is now expected to be 'significantly above' EUR 2.3 billion (so far: around EUR 2.3 billion).
The comprehensive disclosure for Q1 2021 will be released on May 5th as planned.
Explanations on these financial indicators are available in the 2020 Deutsche Post DHL Group Annual Report (see page 25f) which is published on the company's website at the link below: