Group revenue increases by 4.4% to EUR 14.8 billion in Q2

Deutsche Post DHL Group posts strong growth in revenue and EBIT in the second quarter of 2017. Operating profit is up by 11.8% to EUR 841 million


Deutsche Post DHL Group Frank Appel


Deutsche Post DHL Group, increased revenue and operating profit significantly in the second quarter of 2017. Group revenue increased by EUR 623 million to EUR 14.8 billion, with the international parcel and eCommerce business and the global Express business in particular driving this strong growth. With EBIT of EUR 841 million, Deutsche Post DHL Group recorded the strongest second quarter in its history, and the seventh consecutive quarter in which the company has posted an all-time quarterly high.

 

“We are very satisfied with both the second quarter and the entire first half of the year. Our company is growing in all areas and steadily increasing earnings,” said Frank Appel, CEO of Deutsche Post DHL Group. “Our good results so far this year demonstrate that we are right on track to achieve our EBIT targets for full-year 2017. We also remain optimistic about the coming years. All of our divisions, thanks to their focus on fast-growing markets such as global e-commerce, are optimally positioned for long-term growth,” added Appel.

 

Outlook: Earnings targets confirmed for 2017 and beyond

Following the successful first six months, the Group continues to forecast an increase in EBIT to around EUR 3.75 billion for full-year 2017. Deutsche Post DHL Group is also maintaining its forecast of an average increase in operating profit of more than 8% annually (CAGR) during the period from 2013 to 2020.

 

Second quarter of 2017: Group EBIT grows at double digit rate

Group revenue grew by 4.4% to EUR 14.8 billion in the second quarter. The company’s operating profit increased by 11.8% to EUR 841 million. The improvement in the Group’s profitability was driven largely by the Express (+12.2%) and Supply Chain (+21.6%) divisions, both of which achieved significant double-digit growth in operating profit.

 

Consolidated net profit after non-controlling interests increased by 11.3% to EUR 602 million against the prior-year level (2016: EUR 541 million) thanks to the increase in operating profit. Basic earnings per share saw a corresponding increase, rising from EUR 0.45 in 2016 to EUR 0.50 in 2017.

 

Capital expenditure and cash flow: Group further strengthens foundation for long-term growth

Deutsche Post DHL Group invested EUR 351 million in the second quarter of 2017 (2016: EUR 456 million). Investments continued to focus on positioning the Group for future profitable growth in all four divisions. For example, the Group made further progress in extending its domestic and international parcel infrastructure in addition to investing in the production of its StreetScooter electric vehicle. In the Express division, global and regional hubs were upgraded and the aircraft fleet modernized and expanded. The Group continues to plan for full-year capital expenditure of approximately EUR 2.3 billion (2016: EUR 2.1 billion).

 

Operating cash flow was EUR 726 million in the second quarter (2016: EUR –161 million), while free cash flow was EUR 385 million (2016: EUR –600 million).  The respective prior-year figures were significantly impacted by an outflow of EUR 1 billion to fund pension obligations.