Good international business: the next record profit for the post office


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Status: 09.03.2023 10:15 a.m

Once again, Deutsche Post looks back on a year with better business. The shareholders should benefit from the billions in profits. In the dispute over the salaries of the workforce, the company is threatened with an indefinite strike.

Deutsche Post once again presented a record balance sheet for the past year. The group was able to achieve the operating earnings before interest and taxes of 8.4 billion euros forecast by the management, primarily through its international business. The company announced today that the previous year’s result had been exceeded by almost six percent.

Parcel boom and increased freight rates

In the past year, the Post was able to benefit above all from the high air and sea freight rates and the booming online trade, which led to strong business momentum on land routes.

The letter and parcel business in Germany, on the other hand, declined. “The structural decline in letter volumes has continued,” said the outgoing Post boss Frank Appel. Despite this, the logistics group was able to record an increase in sales of 15.5 percent to 94.4 billion euros for the year as a whole.

However, management assumes that momentum will weaken somewhat this year. However, this is heavily dependent on the overall economic development. In the medium term, the DAX Group is aiming to reach the record level of 2022 again. “We want to grow again by 2025 and we have the best prerequisites for this,” said Appel.

Is the boom over?

The group had originally planned to earn more than 8.5 billion euros from operations by 2024. However, analysts were already skeptical about this forecast in advance.

For the current year, Swiss Post assumes that the operating result will be between 6 and 7 billion euros, depending on the course of the economy. “We assume that the first half of the year will be particularly challenging,” said Appel. “The question, however, is how long it will take for the global economic recovery to regain momentum.”

Competitor UPS reported a drop in sales last quarter. The competitor Kuehne + Nagel had also announced the end of the “corona-related special boom”, which was triggered by high freight rates.

Higher dividend and more share buybacks

After a record year, Deutsche Post is increasing its dividend and expanding its share buyback program. The group announced that it would distribute a dividend of EUR 1.85 per share for the past year. In addition, the existing share buyback program will be increased by one billion euros, bringing the total volume of the program to up to three billion euros.

Meanwhile, the company has to prepare for an intensification of the collective bargaining dispute: The ver.di union is expected to announce the result of its ballot at the post office in the afternoon. If three quarters of the employees surveyed have rejected their employer’s collective bargaining offer, ver.di is likely to call an indefinite strike.

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