- 10 May 2019
- Transport / Logistics Services
Money from the sale of DHL Supply Chain’s business is being reinvested into its UK transformation programme, according to DHL’s Group Q1 trading statement.
As a s result of the sale, in the first quarter DHL Supply Chain recorded a one-time positive EBIT effect of €426 million and said: “A portion of the funds generated from the SF transaction were reinvested into restructuring the Supply Chain business, mainly in the United Kingdom.”
Across the Deutsche Post DHL Group, revenues rose 4.1% to €15.4bn, with operating profits up 28.1% to €1.2bn.
Its parcels division, rebranded DHL eCommerce Solutions, saw revenues grow by 8.9% to €1.0bn in Q1. Restructuring costs made it have an operating loss of €28m.
The Express division saw revenue rise 5.3 per cent to €4bn, but operating profit fell from €461m to €453m as the group decided to shift the focus of the business to lighter-weight higher-margin shipments.
The group said: “The rollout of the new IT infrastructure continues to progress well. The division is thus well on the way to closing the profitability gap to its leading competitors in the medium-term.”
Group chief executive Frank Appel said: “We are performing according to plan and are on track towards achieving our targets.”