Deutsche Post DHL Group is expecting operating profits of at least €5 billion in 2020, after a successful financial year despite global trade uncertainties.
The company reported a 6% organic rise in group revenue to €61.6 billion, while operating profits reached €3.2 billion, meeting projections. Earnings before interest and taxes are expected to increase to €3.9-4.3 billion by the end of the fiscal year.
“2018 was a challenging year for Deutsche Post DHL Group, which we closed with a successful Christmas business,” said CEO Frank Appel. “Despite rising geopolitical uncertainties, global trade continued to register growth."
According to Appel, the company has “created the conditions for reaching our 2020 targets and for continuing to grow profitably in the years thereafter.”
Credit: Deutsche Post DHL Group
The Group reported that its four DHL divisions—Express, Global Forwarding & Freight, Supply Chain and eCommerce Solutions—all contributed to the positive trend, driven by e-commerce and international trade.
As of January 2019, the company has restructured its post and parcel business, dividing it into the separate domestic and international operations of Post und Paket Deutschland and DHL eCommerce Solutions respectively.
In its earlier form, the Post – eCommerce – Parcel division transported 1.5 billion parcels within Germany alone, an increase of 7.5% on the year before, and 10.6% in the rest of Europe. eCommerce revenue increased by 6.9%, while post revenue dropped slightly by 3%, as expected, due to the effects of GDPR on mail volumes.
Express revenue rose 7.3% to €16.1 billion, while Global Forwarding & Freight saw a rise of 3.4% to €15 billion. Supply Chain saw a drop from €14.2 billion in 2017 to €13.4 billion due to the sale of subsidiary Williams Lea Tag, but revenue increased by 4.3% after adjusting for those factors.
Source: Deutsche Post DHL Group