Monday 26th Sep 2016 - Logistics Manager

Appel sets ambitious growth targets for DHL

DHL has been set a target of increasing profits by some 15 per cent a year over the next five years by parent group Deutsche Post DHL.

Key to this growth will be development of new products, tapping new customer groups, and targeting rapidly growing market sectors – notably life sciences & healthcare, technology and energy industries.

Group chief executive Frank Appel told a meeting of analysts yesterday: “Thanks to our products and services, we are already the leader in many areas. We now intend to set the pace in the industry in profitability terms as well.”

“In recent years, we have laid the strongest foundation for this by introducing far-reaching efficiency-enhancing measures. In future years, our focus will be directed clearly at generating growth – in terms of both earnings and revenues.”

The group is looking for EBIT growth of 13 to 15 per cent in the DHL divisions based on the expected operating profit of more than 1.3 billion euros this year and assuming the absence of another major global economic downturn.

At the same time the group aims to stabilise its annual earnings in the mail business at about 1bn euros.

Chief financial officer Larry Rosen said the company was committed to the goal of exceeding the respective market growth rates by one to two percentage points.

Assuming a largely stable world economy, the company projects sales growth in its Express division to total an average of about seven per cent in future years.

In the Global Forwarding, Freight division, Deutsche Post DHL expects to increase sales in air freight by six to eight per cent annually and in sea freight by an average of seven to eight per cent.

In the Supply Chain division, sales are forecast to climb by an average of eight to nine per cent.