[110318.EN.BIZ] DHL Group 2017 Profits Up 7.2pc To US$4.5 Billion as Sales Rise 5.4pc

GERMANY's Deutsche Post DHL Group's 2017 operating profit increased 7.2 per cent year on year to EUR3.7 billion (US$4.5 billion), drawn on revenues of EUR60.4 billion, which increased 5.4 per cent.

The Bonn-based corporate giant, ranked first among global forwarders, saw fourth quarter group revenue increase 4.5 per cent year on year to EUR16.1 billion.

"With our focus and orientation towards the e-commerce, we implemented the right measures early on, and are now positioned better than ever for future growth," said CEO Frank Appel.

"At the same time, we are leveraging the digitalisation opportunities that present themselves in all four divisions and expanding our foundation for a successful future." he said.

DHL as the world's biggest buyer of airfreight - Kuehne + Nagel tops it in seafreight - said its express and e-commerce businesses "continued to see dynamic growth".

Global Forwarding's freight performance improved over the year with revenue up 5.4 per cent to EUR14.5 billion in 2017.

Forwarding's pre-tax profit rose 3.5 per cent to EUR297 million, with gains retarded in the first half by untransferable rate increases. But, rising rates in the second half were more easily passed on to customers, greatly improving profits. Swiss rival Panapina had the same experience.

Full year revenue in the post, e-commerce and parcel (PeP) division increased 6.4 per cent to EUR18.2 billion, gains attributable to volumes and revenue growth from e-commerce.

The most substantial gain was posted by Parcel Europe, where revenue grew 65.4 per cent. A key driver of the increase was the first-time inclusion of the UK Mail's 2017 revenue of EUR536 million.

In the PeP division, operating profit increased 3.9 per cent year on year to EUR1.5 billion and was attributed to growth in the German Parcel business, stable post revenues and "disciplined cost management".

At the same time profit growth was held back by further investments in the international parcel network and the e-commerce business, said the company statement.

The upward revenue and earnings trend in the express division continued in 2017. Revenue rose 9.5 per cent to EUR15 billion.

"The division registered growth across all regions," said the company. "This dynamic performance was driven once again by the international time-definite delivery business, where daily volumes increased 9.9 per cent year on year.

"The volume increase will enable the division to utilise its unique global express network even more efficiently.

Operating profit grew 12.4 per cent to EUR1.7 billion on the back of strict yield management. The operating margin rose to 11.5 per cent, up from 11.2 per cent in the previous year.

Revenue in the supply chain division increased by 1.4 per cent to EUR14.2 billion in 2017. Adjusted for negative currency effects, the year-on-year increase in revenue came to 4.6 per cent.

Said the company statement: "Once again, supply chain generated new business. The division concluded additional contracts worth EUR1.5 billion with both new and existing customers."

Source : HKSG.