Deutsche Post shares slid 3% on Tuesday morning after the logistics giant affirmed its trimmed 2024 forecast, weighed down by reduced business-to-business mail volumes and lower air freight margins in the third quarter. For 2024, the German group confirmed it expects a group EBIT of over 5.8 billion euros, down from a prior estimate of between 6 billion euros and 6.6 billion euros.
The company also backed its lowered medium-term EBIT growth target of more than 7 billion euros for 2026, below its prior estimate of 7.5 billion euros to 8.5 billion euros. "We still expect the Group to benefit from a seasonal increase in B2C shipment volumes until the end of the year. However, based on trading in October, there is currently no indication of an improved development for B2B and mail volumes," Chief Executive Officer Tobias Meyer said in an interview. Thanks to robust growth across all divisions, the DHL owner's revenue climbed to 20.59 billion euros in the three months ended Sept.
30 from 19.40 billion euros a year earlier. The global forwarding and freight segment posted the strongest year-over-year jump of 14% to 5.04 billion euros, followed by an 11.4% increase in the eCommerce division to 1.48 billion euros. However, consolidated net profit slipped to 751 million euros from 807 million euros, pressured by persistent challenges in Post & Parcel Germany.
The division continues to grapple with declining letter volumes as costs for staff and energy have "literally exploded," said Meyer. "It is becoming increasingly apparent that not only the volume of mail communication is dropping, but dialog marketing is also on the decline," he added. Still, Post & Parcel Germany's revenue grew 2.4% year over year to 4.05 billion euros, bolstered by seasonal gains in e-commerce deliveries to consumers.
However, business-to-business volumes remain impacted by "weak economic dynamics," the company said..