Results for Q2 from DHL show a steady expansion in revenues and operating result. Group turnover of €15.5bn was 3.0% higher year-over-year, with all divisions registering growth. EBIT of €769m was 2.9% higher year-over-year, with only the Supply Chain division negatively affecting growth.
The (relatively) new PeP posted €3.6bn in revenue, up 1.5% year-on-year, primarily as a result of growth in the German parcels business. The company recently initiated new pricing measures, and with volume increases too, Parcel Germany saw revenues grow by 10.5%. Crucially, EBIT recovered, increasing from €108m in Q2 2018 to €177m. Earnings in the prior-year period were diminished by non-recurring restructuring expenses.
Express revenues grew 4.8% to €4.2bn. Volumes of its core TDI product grew 6.6% year-over-year and all regions contributed to its expansion. The company claimed to have employed “strict yield management” practices, meaning EBIT increased by 0.8%.
Global Forwarding, Freight, registered a 2.5% year-on-year increase in revenues. Air freight forwarding volumes fell 5.8%, whilst ocean freight volumes grew 0.2% year-on-year. Air revenues dropped 2.4%, whilst ocean revenues grew 8.9%. In its Freight business, revenues increased 4.2% in H1 thanks to 9.5% volume growth in European overland transport. EBIT for the division in Q2 grew 18.1% year-over-year to €124m.
Supply Chain revenues were up 1.2% to €3.3bn. The company said it continued to generate new business, despite the loss of revenues from its Chinese divestment to S.F. Holding. EBIT fell to €87m from €128m, which the company attributed to planned re-structuring of its business, including in the UK. After adjustment for non-recurring effects, company EBIT climbed by 9.4%.
According to CEO Frank Appel, “business developed as planned in the second quarter. We have already generated Group EBIT of about EUR 1.9 billion after six months. That’s nearly half of our minimum target for 2019. We are therefore confident about our further performance and have raised the lower end of our full-year forecast – despite the challenging macroeconomic environment.”
Source: DHL
