Shares of Deutsche Post DHL Group were gaining around 5 percent in German trading after the logistics company reported Wednesday significantly higher profit and revenues in its first quarter. Further, the company raised fiscal 2021 earnings guidance significantly due to positive business performance. The company expects further growth in the coming quarters, even with growth rates normalizing over time.

Looking ahead for fiscal 2021, the company now expects EBIT to increase to more than 6.7 billion euros, compared to the prior outlook of significantly above 5.6 billion euros. EBIT in the prior year was 4.8 billion euros.

The revision in outlook is mainly driven by the DHL divisions, which now expect to deliver an EBIT of more than 5.4 billion euros.

Further, for 2023, Deutsche Post DHL now expects EBIT of more than 7.0 billion euros, compared to a previous forecast of more than 6.0 billion euros.

According to the company, the impact of COVID-19 now presents an opportunity with high significance for 2021.

For the first quarter, consolidated net profit attributable to shareholders surged to 1.19 billion euros or 0.94 euros per share from 301 million euros or 0.24 euros per share last year.

Operating profit or EBIT more than tripled to 1.91 billion euros from 592 million euros last year, making it the strongest opening quarter ever. All five divisions were able to significantly increase EBIT.

EBIT after asset charge or EAC was 1.24 billion euros, compared to last year’s loss of 80 million euros.

Consolidated revenue for the first quarter rose 22 percent to 18.86 billion euros from last year’s 15.46 billion euros. All divisions and regions contributed to this growth

Revenue in the Express division increased 32.5 percent from last year to 5.50 billion euros mainly with double-digit growth in Europe, Americas and Asia Pacific. Global forwarding, freight revenue was up sharply 32.7 percent to 4.75 billion euros.

The company recorded growth of 18.2 percent in air freight volumes in the first quarter of 2021, due mainly to increased demand from Asia and the United States. Available market capacity remained at a low level on account of the limitations on passenger flights. First-quarter air freight revenues rose 59.3 percent. Ocean freight volumes were up 8.8 percent year-on-year and revenues grew 49.2 percent.

Supply chain revenues edged up 0.3 percent. eCommerce Solutions revenues grew 46 percent and Post&Parcel Germany revenues went up 15.1 percent.

In Germany, Deutsche Post shares were trading at 50.82 euros, up 4.5 percent.

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