Deutsche Post’s Q1 EBIT falls 24.1%
Deutsche Post, a logistics and courier company based in Bonn, Germany, has reported a 24.1% decrease in earnings before interest and tax (EBIT) to €1.64 billion ($1.81 billion) for the first quarter of 2023. Despite the decline, the company’s Q1 earnings exceeded analysts’ consensus estimate of €1.46 billion.
Deutsche Post’s revenue increased by 7.3% to €18.9 billion in the first three months of the year compared to the same period last year. This was due to strong growth in the company’s e-commerce and parcel delivery businesses, which saw a 22.2% increase in revenue year-over-year. The company’s supply chain division also saw growth, with revenue rising by 4.9%.
The company’s mail and international parcel businesses, on the other hand, experienced a 4.7% decline in revenue. This was attributed to the continuing trend of decreasing mail volumes and a reduction in cross-border parcel deliveries due to the COVID-19 pandemic.
Deutsche Post’s CEO, Frank Appel, expressed optimism for the future despite the challenging environment. He noted that the company’s growth in e-commerce and parcel delivery businesses, which now account for almost 70% of its revenue, was a positive sign for its future prospects. The company is also investing in expanding its logistics and supply chain services to meet growing demand from customers.
Deutsche Post’s stock price rose by 1.7% to €58.30 on the Frankfurt Stock Exchange following the release of its Q1 earnings report. The company’s market capitalization currently stands at €73.1 billion ($81 billion).
In conclusion, while Deutsche Post’s Q1 EBIT saw a significant decline compared to the same period last year, the company’s overall revenue exceeded expectations due to strong growth in its e-commerce and parcel delivery businesses. With its focus on expanding its logistics and supply chain services and meeting the growing demand from customers, the company is well-positioned to weather the ongoing challenges presented by the pandemic and maintain its position as a leading logistics and courier company.
