Deutsche Post AG (DHLGY) Q4 2024 Earnings Call Transcript

2025-03-06 18:59:19 ET

Deutsche Post AG (DHLGY)

Q4 2024 Earnings Conference Call

March 06, 2025 3:00 AM ET

Company Participants

Tobias Meyer – Group Chief Executive Officer

Melanie Kreis – Group Chief Financial Officer

Martin Ziegenbalg – Head of Investor Relations

Conference Call Participants

Muneeba Kayani – Bank of America

Alexia Dogani – JPMorgan Chase & Co.

Cedar Ekblom – Morgan Stanley

Cristian Nedelcu – UBS

Andy Chu – Deutsche Bank

Marco Limite – Barclays

Patrick Creuset – Goldman Sachs

Muneeba Kayani – Bank of America

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the DHL Group Conference Call. Please note that this conference call will be recorded. You can find the privacy notice on dhl.com. Throughout today's presentation all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. [Operator Instructions]

I would now like to turn the conference call over to Martin Ziegenbalg, Head of Investor Relations. Please go ahead.

Martin Ziegenbalg

Thank you, and a warm welcome and good morning from my side to all you, who have dialed in to our call. As flagged, I have got with me our Group CEO, Tobias Meyer; and the Group CFO, Melanie Kreis, who, as always, will take you through the deck that you have in front of you, and after that, we have sufficient time for Q&A.

So without further ado, over to you, Tobias, please.

Tobias Meyer

Yes. Good morning. Thanks for joining us. Glad to have you and speak about the full year 2024 and how we finished it. On Page 2, you'll find some highlights, starting with the EBIT for the full year, which stands at €5,886 million. We had the expected relatively strong Q4. We delivered what we think was a great peak season across all divisions, not only from a financial point of view, but also from a quality point of view and had also very targeted yield and cost measures, especially in express, the cargo mix was really working out very well for us and that led to a strong finish.

Also in terms of cash conversion, we stayed at the high level, you are now used from us, with roughly €3 billion in terms of free cash flow. We stay committed to a stable dividend at €1.85 per share, and we have upped the buyback program by €2 billion and extended it by a year. As was already talked about in Strategy 2030 with a setup for success component, we have now put our measures into a group-wide program, which we call Fit for Growth. We believe that's needed to keep the focus on those efficiency measures as to be able to provide the cash flow needed to achieve our growth aspirations. I come to the guidance later with a detailed chart.

On the next page, you see the longer-term development with our new flying altitude post-COVID with, obviously, the normalization that we've seen since the peak in 2022, but also that the fourth quarter is in line with the historical share that we have in terms of earnings the fourth quarter, obviously, in P&P, but also in express being particularly strong in those areas where we have a fixed cost network. We also then have a higher profitability....

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