Deutsche Post DHL Group meets earnings guidance for 2018 and confirms targets for 2020

Deutsche Post DHL Group, the world‘s leading mail and logistics company, continued to grow in the financial year 2018. Group revenue was up by 1.8% to EUR 61.6 billion.

After adjusting for currency effects and portfolio changes, the revenue increase was even greater at 6.0%. All four Group divisions contributed to the positive trend. Growth was driven by the ongoing boom in e-commerce as well as sustained growth in international trade flows. The Group‘s operating profit (EBIT) came to EUR 3.2 billion and thus reached the adjusted earnings target communicated in June 2018.

”2018 was a challenging year for Deutsche Post DHL Group, which we closed with a successful Christmas business. Despite rising geopolitical uncertainties, global trade continued to register growth. This benefitted our DHL divisions in particular. In our German post and parcel business, we initiated measures to secure the division‘s long-term EBIT growth - and we consciously accept that this comes with a short-term burden on EBIT,” said Frank Appel, CEO of Deutsche Post DHL Group. ”We have thus created the conditions for reaching our 2020 targets and for continuing to grow profitably in the years thereafter.“

Deutsche Post DHL Group is projecting an increase in operating profit to EUR 3.9 to 4.3 billion in 2019. Structural and operating improvements in all Group divisions are expected to contribute to the increase. The measures initiated to raise profitability in the German post and parcel business are expected to be one of the main factors having a notably positive impact on earnings in the current financial year.

Among the measures implemented were the changes made to the structure of Deutsche Post DHL Group effective 1 January 2019. The previous Post - eCommerce - Parcel (PeP) division was split into two separate divisions: The new Post und Paket Deutschland (P&P) division focuses on the mail and parcel business in the domestic market, while the Group‘s international parcel and e-commerce activities have been combined to form the new DHL eCommerce Solutions division.

The P&P division is expected to contribute between EUR 1.0 to 1.3 billion to the Group‘s projected EBIT for 2019. 

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