Deutsche Post DHL's annual EBIT plunges 15.5pc to US$3.547b
IN spite of revenue growth of 1
IN spite of revenue growth of 1.8 per cent Deutsche Post DHL Group's 2018 profit from operating activities before tax and interest (EBIT) dived by 15.5 per cent year on year to EUR3.16 billion (US$3.547 billion) on revenue of EUR61.6 billion.
EBIT from the Post-eCommerce-Parcel (PeP) division fell by 56.4 per cent to EUR656 million for the year, although, the division's revenue rose by 1.7 per cent to EUR18.5 billion. The group spent EUR502 million restructuring the division into the Post und Paket Deutschland and DHL eCommerce Solutions divisions, effective from January 1.
'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,' CEO Frank Appel was quoted as saying in a report by American Shipper.
In 2018 DHL's Express division experienced the largest growth in revenue at 7.3 per cent to EUR16.15 billion and the second-largest increase in EBIT, which surged by 12.7 per cent to EUR1.96 billion. The division saw revenue growth across all regions and was driven by the rise in international time-definite delivery business, after volumes increased by 7.4 per cent year on year.
EBIT for the Global Forwarding, Freight division skyrocketed by 49 per cent to EUR442 million on revenue of EUR14.98 billion, up 3.4 per cent. Revenue from the Supply Chain division dropped by 5.7 per cent (EUR13.35 billion) and by 6.3 per cent in EBIT (EUR520 million).
In the fourth quarter the group registered year-on-year-revenue growth of 5.1 per cent (EUR16.93 billion). The PeP division's EBIT dropped 28.4 per cent to EUR366 million with a 1.5 per cent rise in revenue to EUR5.13 billion. The Express division's EBIT rose by 14.2 per cent to EUR570 million and revenue climbed nine per cent to EUR4.42 billion.
The Global Forwarding, Freight division's EBIT jumped 30.9 per cent to EUR161 million and its revenue was up 5.6 per cent to EUR4 billion. The Supply Chain division's revenue improved 3.4 per cent to EUR3.74 billion but EBIT remained flat at EUR184 million.