Home » 3PL/4PL, Breaking News » DP DHL logs revenue and EBIT growth, raises lower end of full-year forecast

Deutsche Post DHL Group (DP DHL) reported an increase in revenue of 3.0% year-on-year in the second quarter, as all five divisions contributed to the positive development, and all regions of the world posted growth.

For the period April-June, group revenue rose year-on-year to EUR15.5 billion (US$17.35 billion), while operating profit (EBIT) improved by 2.9% to EUR769 million.

However, consolidated net profit declined to EUR458 million from EUR516 million in the same quarter of 2018, the decline attributable to an exceptionally low tax rate in the previous year compared to 2019, causing  basic earnings per share to decrease accordingly.

Earnings of the post & parcel Germany division (P&P) turned positive again for the first time since the fourth quarter of 2017. However, EBIT growth of the group was held back by restructuring expenses in the supply chain and e-commerce solutions divisions.

“Overall, Deutsche Post DHL Group is in good shape. Our business developed as planned in the second quarter,” said Frank Appel, CEO of DP DHL group. “We have already generated Group EBIT of about EUR1.9 billion after six months. That’s nearly half of our minimum target for 2019.”

He added that measures initiated to improve productivity at P&P and the postage rate increase as of July 1 will provide further momentum in the second half of the year, as will the traditionally strong final quarter.

“We are therefore confident about our further performance and have raised the lower end of our full-year forecast—despite the challenging macroeconomic environment,” said Appel.

For the current financial year, DP DHL group now expects to increase operating profit to between EUR4.0 billion and EUR4.3 billion (previously EUR3.9 billion to EUR4.3 billion).

The P&P division is forecast to contribute between EUR1.1 billion and EUR1.3 billion of this amount, up from the previously EUR1.0 billion to EUR1.3 billion.

Earnings in the DHL divisions are still expected to be at EUR3.4 billion to EUR3.5 billion.

DP DHL has confirmed the forecast for 2020. Group EBIT is projected to increase to more than EUR5.0 billion next year, with P&P expected to contribute more than EUR1.6 billion and the DHL divisions more than EUR3.7 billion to this total.

In the first six months of 2019, DP DHL said there was solid revenue and earnings improvement compared to the same period last year.

Revenues rose by 3.6% to EUR30.8 billion while operating profit improved by 16.7% to EUR1.9 billion. The DHL divisions in particular once again made encouraging earnings contributions, although the considerable jump in earnings was driven by a positive non-recurring effect from the supply chain partnership with S.F. Holding in China in the first quarter.

Consolidated net profit after non-controlling interests improved by 7.9% in the first six months to EUR1.2 billion.

Photo courtesy of DP DHL

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