DB Group reports annual results for 2020


DB Group reported its annual results for 2020 and DB Schenker saw overall revenues increase by 3.4% to €17.7bn, up by €580m from 2019. 

Land transport revenues dropped by 5.7% to €6.7bn, down by €409m. EBITDA fell by 0.6%, to €339m. The division was hit by the consequences of the pandemic, though volumes increased by 1.0%

Ocean and air freight revenues increased by 14.0%, to €8.2bn, up by €1.0bn. EBITDA rose by 169%, to €511m, from €342m. Air freight rates went up considerably due to the pandemic, while numerous measures were taken to ensure continuity. It also saw increased demand for pharmaceutical transports. In sea freight, the improved performance in the latter half of the year was not able to compensate for the losses in its Asia-Pacific trade lane.

Revenue in contract logistics fell by 0.7%, to €2.7bn, dropping by €19m. While EBITDA increased by 46.0%, to €358m. Due to pandemic-related disruptions, the division had suffered hits as well, as demand for aerospace, industrial and automotive declined. 

DB Cargo, DB’s rail freight subsidiary, adopted a strategy for growth in 2020 and will implement this strategy in the coming years. It saw higher cargo volumes for groceries and the like, but lower volumes in key industries such as automotive, steel and ore. Total freight carried fell more than 8% year on year. DB Cargo recorded a revenue drop of 7.4% in 2020, to €4.1b. EBITDA contracted by €334m, from €13m in 2019. Most of the revenue came from Central Europe, contributing 80%, followed by Western Europe with 12%, and finally, Eastern Europe with 8%. 

“I am confident that people will start taking our trains again and transporting more freight by rail than ever before,” said DB CEO Dr. Richard Lutz. “We are an eco-friendly option – a vaccine for climate change.”

DB is responding to the pandemic with a program to cut spending and cover a large portion of its Covid-19 losses itself. This program generated savings of some €1.7bn in 2020 alone. “The DB Group aims to be profitable again from 2022 on,” said CFO Dr. Levin Holle. “To this end, we need to implement an extensive, systematic program to respond to the financial effects of the pandemic. Our climate-friendly mobility business has a promising future and is still set to grow.” However, DB will need some time to counter the impact of the pandemic, which is still ongoing. The company currently expects to remain in the red in 2021. At roughly -€2bn, however, adjusted losses before interest and taxes will be much less than in 2020. Revenues are expected to increase to at least €41bn. Due to the ongoing pandemic, forecasts are still subject to a high level of uncertainty, according to the company.

Source: DB Schenker