E-commerce and cross-border underpin 2017 gains at DHL

The Deutsche Post DHL Group’s emphasis on cross-border package shipment and e-commerce seems to be paying off, with a 7.2 percent increase in FY2017 operating profits, at €3.74 billion. The group’s Post, E-commerce, and Parcel (PeP) division posted the largest profits, contributing €1.5 billion to the total haul. Group revenue was up by 5.4 percent to €60.4 billion, with all four divisions contributing to the increase.

“With our international focus and our firm orientation towards the fast-growing e-commerce market, we implemented the right measures early on and are now positioned better than ever for future growth,” said Frank Appel, CEO of Deutsche Post DHL Group.

• Post, E-commerce, and Parcel – Revenue increased by 6.4 percent to €18.2 billion in 2017. The division’s positive performance was primarily attributable to growth in volumes and revenue in the e-commerce and parcel business unit. PeP delivered more than 1.3 billion parcels in Germany alone in 2017 overall, an increase of 7.8 percent and a new record.
• Express: Revenue rose by 9.5 percent year-on-year (y-o-y) to €15 billion, with growth across all regions. Performance was driven by the international time-definite (TDI) delivery business, where daily volumes increased by 9.9 percent y-o-y. DHL said that the volume increase would “enable the division to utilize its unique global express network even more efficiently.” Express operating profit grew by 12.4 percent to €1.7 billion on the back of “strict yield management and continuous improvements in the network.”
• Global Forwarding, Freight: Freight improved over the course of the year. Revenue increased by 5.4 percent to €14.5 billion in 2017. The division registered significant volume growth in both air and ocean freight. Road and rail transport also developed positively in Europe, particularly in Germany.
• Supply Chain: Revenue in the Supply Chain division increased by 1.4 percent to €14.2 billion in 2017. Adjusted for negative currency effects, the year-on-year increase in revenue amounted to 4.6 percent. The division concluded additional contracts worth € 1.5 billion with both new and existing customers during 2017.

Deutsche Post DHL Group sounded an optimistic note for the year ahead, noting that the first few months were already strong. The German express and supply chain company is counting on “the solid pace of economic expansion, further business growth and operational improvements in the individual divisions in particular will lead to increased earnings in 2018,” for casting a rise in EBIT to approximately €4.15 billion.