Net Profit of Deutsche Post Decreased in the First Quarter

The German logistics group Deutsche Post DHL reported on Tuesday a lower net profit and stagnation in revenue in the first quarter, influenced by unfavorable exchange rates and investments aimed at keeping pace with strong demand for parcel delivery services.

In the period from January to March, the net profit of the German company fell by 5.2 percent to 600 million euros, which the company attributed to new accounting regulations.

Operating profit rose by 2.3 percent to 905 million euros. Revenues were almost stagnant, reaching 14.7 billion euros.

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Deutsche Post notes that operating profit in the parcel delivery and e-commerce division decreased due to investments in electric vans and improvements in international logistics to keep pace with strong demand.

Overall, the group invested 327 million euros in the first three months of this year to improve parcel delivery infrastructure, slightly less than in the entire previous year.

In the first quarter, revenues from clients outside the eurozone were eroded by unfavorable exchange rates, they note.

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– Overall, the start of the year was good, although we have a lot of work ahead in the rest of 2018, concludes CEO Frank Appel.

– The boom in global e-commerce continues, which means that the most important engine of our business remains intact, adds Appel.

He also confirmed that they are confident they will achieve their annual targets, which would mean a 10 percent increase in operating profit to around 4.15 billion euros. This would bring them closer to the set target of over five billion euros in profit by 2020.