Deutsche Post DHL’s Q3 net profit down but organic revenue increased 4.7%
Deutsche Post DHL Group has reported that its generated consolidated net profit in the third quarter of 2018 was EUR 146 million, down from EUR 641 million in 2017.
The company also revealed that third-quarter revenue improved 1.4% year-on-year to 14.85 billion euros, an organic increase of 4.7%.
The company say that the net profit decline is mainly attributable to lower EBIT in the Parcel (PeP) division. Basic earnings per share decreased accordingly to EUR 0.12 (2017: EUR 0.53). In view of the challenges at PeP, the Group adjusted its forecast for the financial year in June 2018.
Despite this, the company’s Q3 results revealed that Deutsche Post DHL Group continued to grow in the third quarter and is well on its way to reaching the Group’s earnings targets for full year 2018.
Between July and September, Group revenue increased by 1.4% year on year to EUR 14.8 billion. The revenue increase was 4.7% adjusted for currency effects and portfolio changes. Notable increases at Express and Global Forwarding, Freight mainly contributed to the Group’s s organic revenue, which continued to rise significantly thanks to the booming e-commerce business and continued momentum in international trade flows.
The Group’s operating profit (EBIT) came in at EUR 376 million for the third quarter. While this figure was below the prior-year amount of EUR 834 million, it was fully in line with the Group’s forecasts. All of the DHL divisions reported EBIT increases, some significant.
Frank Appel, CEO of Deutsche Post DHL Group commented on today’s results:
“Deutsche Post DHL Group remains in good shape with our fundamental growth drivers intact. This is especially evident in the continued good performance of our DHL Express, Global Forwarding, Freight, and Supply Chain divisions in the third quarter. We are tackling the challenges in our Post – eCommerce – Parcel division with determination and are making good progress in implementing the announced measures to improve productivity and the cost structure. The results of our efforts will already be clearly visible over the coming year…We are confident that we will reach our earnings targets for 2018 and 2020 despite the significant rise in macroeconomic risk factors in recent months due to trade disputes and currency fluctuations, for example.”