Deutsche Post DHL saw operating profit rise 1.4 per cent in the first quarter and is now forecasting EBIT for the year of €3.75bn.
Revenue in the Supply Chain division increased by 3.8 per cent to €3.5bn in the first quarter. In the first quarter, the division concluded additional contracts worth €192m with both new and existing customers. Operating profit fell from €127m to €99m – although for the net one-off effect of €38m recorded in 2016, EBIT for the first quarter of 2017 increased by 11.2 per cent.
In the Global Forwarding, Freight division, revenue climbed by 6.6 per cent to €3.5bn in the first quarter of 2017. However gross margin slipped back – although market freight rates increased significantly in the first quarter, it was not possible to pass on the higher buying rates in full to end customers in the short term. The division’s gross profit margin declined as a result, while operating profit decreased from €51m to €40m.
Express revenue rose by 13.0 per cent to €3.6bn while EBIT increased by 11.5 per cent to €396m. The group said this was attributable to further network enhancements, rapid international growth and pricing initiatives. The operating margin stood at 11.0 per cent in the first quarter.
Total group revenue grew by 7.3 per cent to €14.9bn in the first three months of the year, while operating profit increased by 1.4 per cent to €885m in the first quarter.
Chief executive Frank Appel said: “Our team has managed the first half of Strategy 2020 very successfully. Our strategic measures are already clearly paying off. At the same time, we continue to work hard to expand our global market leadership. We are developing trend-setting innovations, moving into new fields of business and leveraging the opportunities presented by digitalization.”