DHL revenues up 1.8%

Common to many delivery companies around the world, Deutsche Post DHL had a challenging year in 2018 that was boosted by its DHL Express and Global Forwarding divisions.

Among the divisions that did not do so well was DHL Supply Chain that saw revenue fall by 5.7% to €13.4bn in 2018. Operating profit fell 6.3% to €520 million. Operating profit decline was attributed by Deutsche Post DHL to negative effects of €50m from customer contracts and €42m from pension obligations. With these effects taken off, operating profit grew by 4.2%.

The revenue decline was mainly down to the sale of Williams Lea Tag and currency effects, it said. “After adjusting for those factors, revenue for the division increased by 4.3 per cent. DHL Supply Chain continued to generate additional new business, closing additional contracts worth €1.3bn with both new and existing customers in financial year 2018.

Restructuring the German mail division (PeP) made operating profits fall 56.4% to €656 million, with revenues only up marginally to €18.5 billion.

DHL’s Global Forwarding, Freight division saw operating profit rocket by 48.8% to €442 million on revenues up 3.4% at €15 billion. This is because the vision was focusing on growing its high margin business.

Another star in the company was DHL Express, with a 12.7% growth in operating profit to €2 billion on revenues up 7.3% to €16.1 billion.

Total group EBIT was down 15.5 per cent for the year at €3.2bn, while revenue was up 1.8 per cent at €61.6bn.

“2018 was a challenging year for Deutsche Post DHL Group, which we closed with a successful Christmas business,” said group chief executive Frank Appel.

“Despite rising geopolitical uncertainties, global trade continued to registerr growth. This benefitted our DHL divisions in particular. In our German post and parcel business, we initiated measures to secure the division’s long-term EBIT growth – and we consciously accept that this comes with a short-term burden on EBIT.

“We have thus created the conditions for reaching our 2020 targets and for continuing to grow profitably in the years thereafter.”

Share

Comments are closed.