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DHL Owner Deutsche Post Extends Buyback Despite Expecting Limited Earnings Growth

By Dominic Chopping

 

DHL owner Deutsche Post increased its share buyback program despite cautioning that earnings could remain relatively flat this year.

The German logistics group, also known as DHL Group, said it expects earnings before interest and taxes in 2024 of between 6 billion and 6.6 billion euros ($6.52 billion-$7.17 billion), before rising to EUR7.5 billion-EUR8.5 billion in 2026.

It posted EBIT of EUR6.35 billion for 2023.

"The year 2023 was characterized by a weak global economy and, above all, weak global trade," Chief Executive Tobias Meyer said.

"Major uncertainty factors such as volatility in demand and geopolitical crises will remain with us in 2024. However, we are very well positioned for the opportunities and challenges of 2024."

Deutsche Post said net profit fell to EUR981 million in the final quarter of 2023 from EUR1.34 billion a year before while revenue fell 10% to EUR21.35 billion.

Analysts expected Deutsche Post to report a fourth-quarter net profit of EUR1.05 billion on revenue of EUR21.3 billion, according to company-compiled consensus.

The company maintained its dividend at EUR1.85 a share, extended its buyback to 2025 and increased it by EUR1 billion to EUR4.0 billion.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

March 06, 2024 01:39 ET (06:39 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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