German logistics giant DHL Group on Wednesday (Mar 6) forecast its 2024 operating profit to come in above pre-pandemic figures, but the outlook fell short of market consensus amid weaker global trade.

The company expects its 2024 earnings before income and tax (Ebit) to land between 6 billion (S$8.74 billion) and 6.6 billion euros, compared with the company-provided consensus figure of 6.6 billion euros.

DHL Group said it still does not foresee a broad economic upturn in the first half of 2024, with even further declining volumes in some markets. It expects positive global economic momentum in the second half of the year.

The German firm reported Ebit of 6.3 billion euros in 2023, below analysts’ expectations of 6.4 billion euros and prior-year earnings of 8.4 billion euros.

“The year 2023 was characterised by a weak global economy and, above all, weak global trade,” chief executive Tobias Meyer said, adding that factors such as volatility in demand and geopolitical crises will remain in 2024.

The company said it would extend its share buyback programme until 2025 and increase it by 1 billion euros to a total volume of up to 4 billion euros.

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DHL plans to propose a dividend of 1.85 euros per share. REUTERS