German logistics company Deutsche Post raised its financial outlook again on Wednesday after more than tripling its operating earnings in the first quarter, predicting that ecommerce will keep booming and global trade will rebound.
Deutsche Post DHL, one of the world’s biggest logistics companies, lifted its operating profit forecast to more than 6.7 billion euros ($8.05 billion) in 2021, and more than 7 billion in 2023. It previously forecast more than 5.6 billion for 2021.
First-quarter operating profit jumped to 1.9 billion euros on revenues up an organic 26% to 18.9 billion.
Deutsche Post CEO Frank Appel told CNBC on Wednesday that the company was in the “sweet spot” with business-to-consumer activity still elevated due to remaining lockdowns and business-to-business sales picking up.
Appel also said the persistent weak demand for intercontinental travel on passenger aircraft, which would typically carry a substantial amount of commercial freight, was benefiting Deutsche Post.
“It takes definitely 2022 and maybe beyond until we see a full normalization, which of course helps companies like us who control more than 250 wide body freighters,” Appel said.
“That has helped us in the last couple of quarters and definitely will be a competitive advantage going forward.”