Deutsche Post AG says its revenue climbed by 13% in fiscal Q4

Deutsche Post AG (ETR: DPW) said on Tuesday that its fourth-quarter net profit posted a significant increase as the Coronavirus pandemic fuelled eCommerce in recent months. On the back of hawkish performance, the German firm also raised its midterm targets on Tuesday through 2023.

Deutsche Post slid roughly 1.5% on market open on Tuesday but recovered the entire intraday loss later on. Including the price action, the stock is now trading at £37.91 per share. In comparison, it had started the year 2021 at a per-share price of £34.87. The price action should come in handy if you are interested in investing in the stock market.

Deutsche Post reports £1.69 billion of EBIT

Deutsche Post said that its net profit in the fourth quarter came in at £1.11 billion. In the same quarter last year, its net profit was capped at a lower £735.31 million. The freight and logistics company reported £16.39 billion of revenue in Q4 that represents a 13% annualised growth.

Deutsche saw a 56% year over year increase in its EBIT (earnings before interest and taxes) in the fourth quarter to £1.69 billion that matched the preliminary figures that the company estimated in January. In the prior quarter (Q3), the package delivery company had posted a 50% increase in its operating profit, as per the report published in November.

The German multinational expressed confidence on Tuesday that its EBIT will top £4.8 billion in 2021, on the back of an accelerated shift to eCommerce amidst the ongoing health emergency. Deutsche Post expects £1.97 billion of free cash flow in 2021 and £2.91 billion of full-year gross capital expenditure.

Deutsche Post’s raised midterm targets for 2023

For 2023, the Bonn-headquartered company forecasts over £5.14 billion of EBIT. It expects to generate up to £7.28 billion of cumulative free cash flow between 2021 and 2023. Cumulative capital expenditure, Deutsche Post added on Tuesday, should fall in the range of £8.14 billion to £9.0 billion between 2021 and 2023.

In separate news from Europe, travel retailer Dufry AG swung to a loss in 2020 as the COVID-19 crisis weighed on demand for travel and tourism last year.

Deutsche Post performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, it is valued at £46.31 billion and has a price to earnings ratio of 21.78.