Deutsche Post DHL Group well placed to emerge stronger from the pandemic

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CEO of Deutsche Post DHL Group Frank Appel has stated that the group is faring well during the Covid-19 crisis and considers itself well prepared for the post-pandemic period. “We can be proud of how we’ve risen to the challenge so far. The crisis shows how robust Deutsche Post DHL Group is,” he said at the group’s AGM (which was held virtually).

In his address, Appel talked about the crisis highlighting the importance of logistics as the backbone of the global economy: “Normally people hardly notice the logistics behind the scenes because everything is running smoothly. It takes a situation like this to truly appreciate how critical logistics is.”

Appel was similarly confident regarding the group’s earnings guidance for the current year, issued in July, and the medium-term financial targets: “We’ve managed to implement the right measures in many areas. Deutsche Post DHL Group will emerge stronger from this crisis.”

The group predicted its operating profit for 2020 should reach between €3.5bn (US$4.13 billion) and €3.8bn (US$4.5bn). While for 2022, it expected an EBIT (earning before tax or interest) of between €4.7bn (US$5.6bn) to more than €5.3bn (US$6.34bn), depending on the course of the overall economic recovery.

According to the CEO, DHL’s success is due to its robust business model, long-established corporate culture and clear strategic direction. Appel noted that its ‘Strategy 2025’, presented in the autumn of 2019, has kept the group on track despite the uncertain environment: “The strategy focuses on the right issues: globalization, e-commerce, digitalization and sustainability. These trends have become all the more relevant in this time of crisis, or are even accelerating rapidly due to the pandemic.”

 

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