Deutsche Post DHL Group has reported its preliminary results for Q2 2020, significantly increasing earnings despite Covid-19. Operating profit (EBIT) improved by around 16% year-on-year to approximately €890m (2019: €769m). Adjusted for one-off effects in the previous year and in the current year, operating profit came in around 25% above the prior-year figure.
Specifically, operating profit in Post & Parcel Germany was around €260m (2019: €177m).
The Express division managed to increase its EBIT in the second quarter to €560m compared to previous year of €521m.
Operating profit in Global Forwarding, Freight stood at around €190m (2019: €124m).
EBIT in Supply Chain suffered from the above-mentioned impairments in the second quarter of around €60 million. EBIT at Supply Chain was around €30m in the Q2 (2019: €87m).
Despite impairments of around €30m, eCommerce Solutions was able to achieve break-even EBIT (2019: €-18m).
At the beginning of the quarter, business development was still dominated by the pandemic protection measures in place in Europe and North America as well as an initial sharp decline in volumes. The Group took measures to adjust to the pandemic-related changed utilisation of the network and to maintain its own flight capacity. During the course of the second quarter, the volume development started to slowly recover. In addition, since end of March 2020, the company has recorded a positive development of shipment volumes driven by e-commerce, both internationally and in the German parcel business.
In light of the recent earnings momentum, management has decided to provide the following outlook for the full year 2020:
In light of the continuing uncertainty about the course of an economic recovery over the next two years, the Group’s medium-term earnings outlook for 2022 is updated as follows:
DHL confirmed that a detailed publication of the results for Q2 2020 will take place in August.
Frank Appel, CEO Deutsche Post DHL Group, stated: “With our broad portfolio of leading logistics services, we have the right business model to form the backbone of global trade.”
Source: Deutsche Post DHL Group
SUBSCRIBE TO LOGISTICS BRIEFING:
Get the latest logistics news and high level analysis delivered straight to your inbox: