DHL has reported is financial results for Q1 2018. Revenues were down 0.9% year-over-year to €14,749m for the period. The company’s EBIT grew 2.3% to €905m. Net profit for the period fell 5.2% to €600m.
The decrease in revenues was attributed to the sale of Williams Lea Tag, as well as negative currency effects. With these adjustments made, revenue growth would have been 6.4%. EBIT was positively affected by a chance in accounting standards and by pension revaluations, more than offsetting a one-off €50m reduction from the Supply Chain division.
In Post-eCommerce-Parcel, revenues grew 1.7% to €4,622m. eCommerce-Parcel revenues grew 6.3% in Germany and 9.9% in Europe ex-Germany. German parcel volumes increased 7.4%. EBIT in the division fell by 9.9%, driven mainly by increased material and labour costs and ongoing investments in the parcel network, which was partially offset by pension obligation re-measurements.
In Express, revenues grew 4.9% to €3,772m, driven by results in Europe (+9.5%) and the Americas (+4.2%). This was partially offset by a reduction in revenues in Asia Pacific (-0.8%) and MEA (-1.8%). Time Definite International volumes grew 9.6% and Time Definite Domestic volumes were up 10.1%. EBIT in the division grew 16.4%.
In Global Forwarding, Freight, revenues were up 1.3% and EBIT was up 75.0%. Air freight and ocean freight volumes declined in the first quarter by 3.0% and 0.3% respectively, but in air freight the company was able to pass on higher freight rates to its customers, which helped lesd to an increase in EBIT of €30m.
Supply Chain revenues fell due to the sale of William Lea Tag Group, but would otherwise have grown by 3.8%. EBIT in the segment fell 44.4% due to “negative one-off effects of €50m from customer contracts.”
Frank Appel, CEO of Deutsche Post DHL Group, commented, “Overall, we had a good start to the year, although we still have a lot of work ahead of us during the remainder of the year. Global e-commerce continues to boom, meaning that the most important growth driver for our businesses is still intact. We remain confident that we will achieve our ambitious goals for 2018 and beyond.”
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