DHL reports Q2 revenue of €20.1 billion and operating profit of €1.7 billion

DHL has announced that its performance in the second quarter “once again demonstrated its resilience in a less dynamic market environment”.

The DHL Group posted a revenue of €20.1 billion, down from €24.0 billion for Q2 2022, and an operating profit (EBIT) of € 1.7 billion compared to the record €2.3 billion achieved in the same period last year.

In a statement issued today (1 August), DHL said that the drop in profits was expected and due to “lower volumes and declining freight rates”.

Focusing on its various business sectors, DHL reported that Q2 revenue in the Post & Parcel Germany division was up 0.8% against the prior-year figure at €4.0 billion – with growth in parcels and the international segment “offsetting the ongoing, structurally induced declines in the German postal business”.

EBIT for the division was 49.2% below the prior-year period at €123 million “due to higher costs caused by inflation and the special payment of the inflation compensation”.

DHL added: “The cost increases in the mail business could not be offset by higher prices due to the current rate regulation for basic mail products. This also led to a 40.6% decrease in capital expenditure in the division compared with the prior-year period. The EBIT margin was 3.1%.”

Meanwhile, the eCommerce division’s €1.5 billion Q2 revenue was 0.3% below the prior-year level. Excluding negative currency effects of €31 million, growth was 1.8%. EBIT for the division decreased from €109 million to €78 million, mainly due to higher costs and ongoing investments in network expansion. However, DHL added that with the recently-announced acquisition of the Turkish parcel service provider MNG Kargo, the network both in Turkey and for cross-border e-commerce business will be strengthened.