Deutsche Post DHL Group has reported a second quarter (Q2) revenue of more than €15bn, which was a 1.4% increase on last year.
In a statement issued yesterday (7 August), Deutsche Post DHL said its performance was in line with expectations and supported by “significant gains at DHL Express and Global Forwarding, Freight”.
The statement added: “All of the DHL divisions reported EBIT increases, some significant. However, earnings in the Post – eCommerce – Parcel division fell back as expected, above all due to higher transport and staff costs. As reported at the beginning of June, the Group has initiated a comprehensive program for PeP to raise productivity and improve the division’s cost situation. This led to increased expenses and the recognition of first provisions in the second quarter.”
Commenting on the results, Frank Appel, CEO of Deutsche Post DHL Group, said: “The second-quarter results were in line with expectations. Our three DHL divisions – Express, Global Forwarding, Freight and Supply Chain – performed well. We are clear about the challenges that face us at Post – eCommerce – Parcel and are implementing the measures for aligning the division toward long-term profitable growth. We are confident to reach our 2020 targets.”
The “measures” that the company plans to put in place to counter the PeP slump including price increases and cost cutting.
In yesterday’s statement, Appel added:”The booming e-commerce business remains the primary growth driver for our German and international parcel businesses – here we continue to see tremendous potential for profitable future growth. In the last years, we have worked hard to expand our leading position in the competitive German parcel market. In the next market development phase, we will focus more closely on our prices and costs in both the Post and Parcel businesses in order to translate the volume development into steadily rising earnings.”