- Operating profit improves to EUR 885 million
- EBIT forecast for full year 2017 confirmed: Earnings expected to increase to approximately EUR 3.75 billion
- CEO Frank Appel: "We are seeing positive results at the half-time mark of our Strategy 2020"
Deutsche Post DHL Group increased revenue significantly in the first quarter of 2017 and posted a further improvement in operating profit. Group revenue climbed by more than EUR 1 billion to EUR 14.9 billion. All four divisions contributed to the strong growth. Volumes and revenue saw substantial growth in particular in the German and international Parcel and eCommerce businesses as well as the global Express business. With Group EBIT of EUR 885 million, Deutsche Post DHL Group surpassed the good prior-year result and registered the strongest first quarter in the company's history1.
"Following a record year in 2016, the upward trend has continued at Deutsche Post DHL Group this year. We reported growth in all four divisions in the first quarter: Our strategy is working, and we are confident that we will achieve our targets for 2017," said Frank Appel, CEO, Deutsche Post DHL Group.
Strategy 2020: Positive half-time assessment
Deutsche Post DHL Group is seeing good results at the half-time mark for its Strategy 2020, which the company introduced in 2014. Key milestones have already been reached. All four divisions have been positioned to leverage growth opportunities, particularly in the e-commerce sector. The company has successfully expanded its Parcel business into international markets, and has also introduced new solutions in its Express business to continue capitalizing on the booming online commerce sector. The Global Forwarding, Freight and Supply Chain divisions are more streamlined and efficient today and therefore positioned for sustainable growth.
"Our team has managed the first half of Strategy 2020 very successfully. Our strategic measures are already clearly paying off. At the same time, we continue to work hard to expand our global market leadership. We are developing trend-setting innovations, moving into new fields of business and leveraging the opportunities presented by digitalization. Our company is already ideally positioned to achieve its strategic and financial targets for 2020," said Frank Appel.
Outlook: Earnings targets confirmed for 2017 and beyond
Deutsche Post DHL Group expects the global economy to grow moderately in 2017. After a good first quarter, the Group has maintained its forecast of increasing EBIT to around EUR 3.75 billion. Additionally, Deutsche Post DHL Group continues to forecast that operating profit will increase by an average of more than 8% annually (CAGR) during the period from 2013 to 2020.
First quarter of 2017: Growth in all four divisions
Group revenue grew significantly by 7.3% to EUR 14.9 billion in the first three months of the year. The company's operating profit increased by 1.4% to EUR 885 million in the first quarter. Adjusted for the non-recurring positive effect posted by Supply Chain in 2016, the increase in EBIT was 6.0%. The improvement in the Group's profitability was driven largely by Express, with a significant double-digit growth in operating profit.
Consolidated net profit after non-controlling interests was slightly below the prior-year level at EUR 633 million (2016: EUR 639 million), due to a higher tax rate. Basic earnings per share decreased correspondingly, edging down from EUR 0.53 in the previous year to EUR 0.52 in 2017.
Source: Deutsche Post DHL