DHL Group Reports Mixed Results for Q2 2024 Amid Economic Challenges

DHL Group has reported a modest increase in revenue for the second quarter of 2024, driven by growth in air and ocean freight volumes. However, the logistics giant faced declines in profitability across several divisions amidst a challenging economic environment.

In Q2, DHL’s air freight volumes rose by 5.3% to 437,000 tons, and ocean freight volumes increased by 6.4%. Air freight revenues grew by 3.6% year-on-year to €1.5 billion, but gross profits in this segment fell by 16.9% to €245 million. The overall forwarding and freight business saw revenues edge up by 0.8% to €4.9 billion, though gross profit declined by 7.9% to €1.2 billion and EBIT dropped 28.1% to €279 million.

DHL’s performance in the air freight sector lagged behind competitors like Kuehne+Nagel and DSV, which reported higher growth rates of 7.3% and 10%, respectively. Melanie Kreis, CFO of DHL Group, noted, “Air and ocean freight volumes further improved from a low starting level. However, we are not observing a broad-based recovery of global trade yet.”

Despite the economic challenges, DHL Group’s overall Q2 revenue increased by 2.7% to €20.6 billion. EBIT was down 20.2% to €1.35 billion, and net profit attributable to shareholders fell 23.9% to €744 million. Kreis stated, “The quarter was as expected. We anticipate a tangible recovery in the world economy and thus tailwinds for our global logistics activities in the second half of the year.”

DHL’s Express division, despite achieving a double-digit EBIT margin, saw a 24.2% drop in EBIT to €683 million, with overall shipment volumes declining slightly. The Supply Chain division benefited from e-commerce and omnishoring trends, with a 2.8% increase in revenues to €4.35 billion and a slight EBIT growth to €279 million. The eCommerce division experienced a 10.5% rise in revenues to €1.67 billion, but EBIT decreased by 14.1% to €67 million due to ongoing investments.

DHL Group remains optimistic about the second half of the year, anticipating improved performance driven by peak season effects and continued focus on cost and capacity management. “Our current Strategy 2025 has carried us effectively through recent challenges, and Strategy 2030 is set to drive further growth,” concluded Kreis.