DHL Romania increases H1 revenues by 40pct and expects further growth through Cargus

DHL Romania increased its turnover by 40pct year-on-year in the first half of 2008, mainly on the growth of the express market in the country. In addition, the company expects further growth after its acquisition of Cargus, the country manager of DHL Romania, Gian Sharp, told the Romanian Newspaper Ziarul Financiar in an interview.

The company’s turnover from domestic delivery services rose by 50pct year-on-year in the first six months of 2008. However, no exact figures were available.

DHL Romania acquired the Romanian express operator Cargus in April 2008 for EUR 50 million (USD 72.59 million). The takeover, which is still pending approval by the domestic competition regulator Competition Council, may be completed by the end of September 2008. After more than two years of talks over the acquisition of Cargus, DHL Romania will begin to make joint decisions on behalf of both companies as of next year.

Furthermore, the company hopes to enter the top three countries in the region in 2009, Sharp said. “Romania has the highest growth rate of all the countries in Europe as far as DHL is concerned. In terms of value, Romania ranks fourth after Poland, Czech Republic and Hungary and as soon as the Cargus acquisition has been completed next year we will move to number three.”

According to estimates, DHL and Cargus will operate an over EUR 80 million business together, double the business volume of the players behind them (Fan Courier and TNT), based on the budgets announced by the companies at the beginning of the year.

The two companies are now awaiting the approval of the Competition Council and have already set their first joint budget aiming for an increase of 30pct in 2009. In addition, the management of the consulting company Baron & Associates has been hired to help integrate Cargus.

DHL Romania closed 2007 with a turnover of more than EUR 40 million ($58.07 million), an increase of 40 pct on the year.