Total revenue reached 79 billion US dollars! Germany DHL 2020 financial report released

German logistics company Deutsche Post DHL Group released its 2020 financial results on Tuesday.

Profits reached $5.8 billion, with full-year growth exceeding expectations

Data showed that the company's operating profit reached US$5.8 billion in 2020 , higher than the original forecast of US$4.9 billion to US$5.3 billion, and basically consistent with the preliminary results disclosed by the company in January.

Based on the strong growth in 2020, DPDHL also predicts that its operating profit in 2021 will reach US$6.6 billion, slightly higher than the initial forecast in January. DPDHL traditionally makes rolling three-year forecasts, and it also expects operating profit to exceed US$7.1 billion in 2023. It is reported that DHL measures operating profit based on earnings before interest and taxes (EBIT).

The company said free cash flow in 2020 was about $3 billion, well above its initial forecast of $2.4 billion. DPDHL said it expects to generate cumulative free cash flow of $8.9 billion to $10.1 billion from 2021 to 2023.

The company also launched a $1.2 billion share buyback program and raised its annual dividend of 24 cents per share to $1.61 per share. DPDHL shares were up nearly 3.5% at $53 per share in early afternoon trading on Tuesday.

In 2020, DHL not only achieved record results, but also created 20,000 new jobs worldwide.

Total revenue reached $79 billion, with strong growth in all segments

According to DHL, DHL's five operating divisions had combined revenues of $79 billion in 2020. Four of the companies saw increases in both revenue and net income.

The strongest performance came from the company's Express and E-Commerce Solutions division, which is not surprising given the unprecedented growth of global e-commerce and the express division's role in transporting medical supplies needed to combat the pandemic . Most of the shipments were transported by air, given the urgent nature of the shipments.

DHL Express's express division , which also operates an international air express subsidiary specializing in scheduled deliveries, posted earnings before interest and taxes of $3.27 billion in 2020, a significant increase from $2.43 billion in 2019.

DHL Global Forwarding, the world's largest air freight forwarder and one of the largest ocean freight forwarders, overcame initial weak demand and tight supply of aircraft and container ship space to achieve an operating profit margin increase of 3.7%, up from 3.4% in 2019.

DPDHL executives said on Tuesday they see B2B business starting to improve in 2021, a trend that will benefit its supply chain, global freight and express divisions.

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