Parcel volumes remain high in Q3

German parcel deliverer DHL reports positive Q3 results exceeding pre-COVID expectations

The corona pandemic had a positive impact on the business also in the post-lockdown period July to September 2020 for German logistics company Deutsche Post DHL. Although the critical pandemic situation eased throughout the summer and government restrictions were loosened – including the re-opening of stationary retail – the trend towards eCommerce obviously persisted through the summer months. Parcel deliverers kept seeing increased demand in the fulfillment of online order shipments, which resulted in positive overall financial developments in Q3 2020 for Deutsche Post DHL. Revenue-wise, the group registered a year-on-year increase of 4.4% to a total of €16.2 billion in the past quarter, with a solid operative income of €1.4 billion despite increased logistics and personnel costs. When looking at the national parcel business only, revenues in Q3 increased even more, namely by 17.1% compared to Q3 2019. In terms of parcel volumes, Q3 results exceeded previous expectations:

At the beginning of the year, the Deutsche Post DHL group expected a year-on-year increase of parcel volumes of its national parcel unit of 5.0% in the third quarter of 2020. The recently reported numbers exceeded this forecast by more than 6 percentage points – resulting in a growth almost twice as high as expected before the pandemic. DHL parcel volumes in Germany reportedly increased by 11.6% in Q3 2020 compared to the same period in the previous year. Deutsche Post DHL delivered a total of 1,340 million parcels in Germany between July and September 2020 – roughly 140 million more than in Q3 2019.

As for the rest of the year, the Deutsche Post group expects a very strong holiday season, driven by a persisting trend towards online shopping. Against this backdrop – and taking into account also the recently reported highly positive quarterly results – the group has raised its full-year 2020 guidance, now expecting an overall operating income between €4.1 billion and €4.4 billion for fiscal 2020 (up from an expected €3.5 to €3.8 billion in the Q2 2020 report). In general, however, the effects of COVID-19 on the overall performance of Deutsche Post DHL cannot be predicted.

 

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December 2020