Deutsche Post DHL registers EUR 2.41 bln operating profit for 2015

The EBIT contribution of the Post – eCommerce – Parcel (PeP) division was EUR 1.1 billion and the DHL divisions generated an operating profit of EUR 1.66 billion. postandparcel.info reports. Deutsche Post DHL Group said that the full year EBIT was down on 2014’s EUR 2.97 billion- but attributed this to “one-off expenses and investments recognised by the Group including expenses related to the new direction of the IT renewal in the Global Forwarding business unit”.

The Group had adjusted its earnings guidance in October 2015 due to one-off charges. Consolidated revenue in 2015 was EUR 59.2 billion, up 4.6% on the EUR 56.6 billion report in 2014. Revenue in the PeP division grew by 2.8% in 2015 to EUR 16.1 billion. EUR 6.3 billion of this divisional revenue was generated by the ecommerce.

Parcel business unit, which grew by 11.9%, thanks to revenue gains of 9.5% for Parcel Germany, 8.7% for Parcel Europe and 23.5% for ecommerce. The PeP division processed more than 1.1 billion parcels in Germany in 2015, 8.7% more than in 2014. In contrast to the ecommerce – Parcel results, revenues in the Post business unit fell by 2.3% to EUR 9.8 billion in 2015.

Explaining why operating profit in the PeP division contracted by 15.0% to EUR 1.1 billion, the Group said: “In addition to higher expenses for materials and personnel, the decline primarily reflects the higher investments made in expanding the national and international parcel infrastructure and the effects of the strike in Germany. In addition, EUR 99 millio of the approximately EUR 200m charges in Group EBIT, communicated in October 2014, was attributable to the PeP business.”, the source cites.

The Group said that its Express division continued to perform well in terms of volumes, revenue and earnings in 2015. Revenue for 2015 was up 9.4% at EUR 13.7 billion, and Group said that – “once again, the main driver of the revenue increase was the strong growth achieved in international time definite (TDI) shipments, where volumes grew by 8.7% over the prior-year period”.

EBIT in the Express division grew by 10.4% to EUR 1.4 billion in 2015 and Deutsche Post DHL said that the division had “again achieved a good operating performance despite currency headwinds and significant investment in the air and road network”.

For 2016, Deutsche Post DHL Group has re-confirmed its EBIT forecast of between EUR 3.4 billion and EUR 3.7 billion. The PeP division is expected to contribute EBIT of more than EUR 1.3 billion to the 2016 earnings target and the DHL divisions between EUR 2.45 billion and EUR 2.75 billion.