While DHL Group achieved substantial financial gains amid challenges in the last fiscal year, the logistics company plans to run a leaner, more efficient operation going forward.
Group revenue was up 3.0 per cent year-on-year in 2024 at €84.2 billion.
For Q4 2024, group revenue rose 6.4 per cent and operating profit (EBIT) grew 12.9 per cent.
However, EBIT was 7.2 per cent below the prior year figure at €5.9 billion (2023: €6.3 billion) but reported to be well above the pre-pandemic level of 2019 (€4.1 billion).
DHL Group CEO, Tobias Meyer, expects the global political and economic situation to remain volatile this year.
“We want to continue growing in this environment and are focusing on the measures we can control,” he said.
“We are actively increasing our efficiency and accelerating our sustainable growth ambitions with our group cost program ‘Fit for Growth.”
The ‘Fit for Growth’ program is part of DHL’s 2030 strategy which the company aims to become leaner and more efficient overall.
This will involve structural improvements to the cost base by more than €1.0 billion and includes various measures across all business units.
The full impact of ‘Fit for Growth’ is expected to be realised in FY27.
At Post & Parcel Germany, around 8,000 positions will be reduced in a ‘socially responsible’ manner.
“DHL Group is an attractive investment for shareholders,” said DHL Group Chief Financial Officer, Melanie Kreis.
“We underscore this with the dividend proposal and an extended, topped-up share buyback program.
“We have a strong balance sheet and high financial performance.
“We expect to return to earnings growth in 2025 and are actively supporting this process with our ‘Fit for Growth’ program and targeted investments in future growth markets.”
DHL has a fourth strategic bottom line ‘Green Logistics of Choice’ to its existing ones: ‘Employer of Choice’, ‘Provider of Choice’ and ‘Investment of Choice’.
The group has anchored all components of its ESG Roadmap in the corporate strategy and is pursuing measurable goals in the areas of environmental, social and responsible corporate governance.
Logistics-related greenhouse gas emissions, for instance, are to be reduced to less than 29 million tonnes of carbon dioxide equivalents by 2030 despite considerable growth.
Declining transport volumes and decarbonisation measures have helped DHL make progress with this initiative – 33.77 million tonnes of carbon-dioxide emissions for FY24 (2024 target value: maximum of 34.9 million).
In other news, DHL has expanded its transport services in Tasmania.
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