DHL Supply Chain profits fall by 24%

The UK arm of DHL Supply Chain saw turnover increase by 2% in 2017 to £3.15 billion. Operating profit fell by around 24% from £99.8m in 2016 to £75.7 million.

According to the company’s accounts for the year to 31 December 2017, DHL Supply Chain said that underlying business performance was robust with new business and renewals off-setting the effect of any lost business.

The profits for the year fell mainly as a result of the £13 million fall in other operating income.

DHL Supply Chain is now the main UK trading entity for the group’s supply chain business and, as a result, a number of contracts formerly reported in Exel UK and Tradeteam have been renewed and are now being reported in DHL Supply Chain.

Looking ahead, the company said: “The external commercial environment is expected to remain competitive in 2018 as customer arrangements continue to be renewed.”