The DHL Group, formerly known as Deutsche Post, reported mixed financial results for the third quarter of 2024. Despite a 6.2% increase in revenue to 20.6 billion euros, net profit declined by nearly 7% to 751 million euros. This downturn is attributed to rising personnel costs, declining letter volumes, and weak margins in the air freight business. The company's stock price reacted sensitively to this news, continuing its weeks-long downward trend.
Adjusted Forecasts and Market Response
In response to recent results, DHL Group has lowered its profit forecast. For the full year 2024, an operating profit of over 5.8 billion euros is now expected, a significant reduction from the original target. The medium-term EBIT growth forecast for 2026 has also been reduced to over 7.0 billion euros. These adjustments reflect challenges in a complex market environment and led to a further decline in the stock price, approaching mid-August lows. The company plans to implement a postage increase at the turn of the year to stabilize revenues in the letter business, though this move has faced criticism for potentially falling short of covering inflation and necessary investment costs.
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