Deutsche Post DHL Group continued its profitable growth course in the second quarter of 2019.
In the period from April to June, the Group increased revenue by 3.0% year-on-year to EUR 15.5 billion. All five divisions contributed to this positive development, as did growth in all regions of the world. The Group’s operating profit (EBIT) improved by 2.9% to EUR 769 million compared to the prior-year period. Earnings of the Post & Parcel Germany division (P&P) turned positive again for the first time since the fourth quarter 2017.
However, EBIT growth of the Group was held back by restructuring expenses in the Supply Chain and eCommerce Solutions divisions.
“Overall, Deutsche Post DHL Group is in good shape. Our business developed as planned in the second quarter. We have already generated Group EBIT of about EUR 1.9 billion after six months. That’s nearly half of our minimum target for 2019. The measures we 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,” Frank Appel, CEO of Deutsche Post DHL Group says.
For the current financial year, Deutsche Post DHL Group now expects to increase operating profit to between EUR 4.0 and EUR 4.3 billion (previously EUR 3.9 to EUR 4.3 billion). The P&P division is forecast to contribute between EUR 1.1 and EUR 1.3 billion of this amount (previously EUR 1.0 to EUR 1.3 billion). Earnings in the DHL divisions are still expected to be at EUR 3.4 to EUR 3.5 billion. Deutsche Post DHL Group has confirmed the forecast for 2020. Group EBIT is projected to increase to more than EUR 5.0 billion next year, with P&P expected to contribute more than EUR 1.6 billion and the DHL divisions more than EUR 3.7 billion to this total.
Despite the improvement in operating profit in the second quarter, consolidated net profit declined. In the period from April to June, net profit after non-controlling interests was EUR 458 million (2018: EUR 516 million). The decline was attributable to an exceptionally low tax rate of 8.8% in the previous year (2019: 22.0%). Basic earnings per share decreased accordingly to EUR 0.38 (2018: EUR 0.42).