Revenues of Deutsche Post DHL increased to 15.5 billion euros (17.4 billion U.S. dollars) in the second quarter of 2019 (Q2), marking a year-on-year increase of 3 percent, the German mail and logistics company announced on Tuesday.
“Overall, Deutsche Post DHL Group is in good shape. Our business developed as planned in the second quarter,” said Frank Appel, chief executive officer (CEO) of Deutsche Post DHL.
Although operational profits (EBIT) of Deutsche Post DHL increased by 2.9 percent to 769 million euros in Q2, EBIT growth of the German postal company was “held back by restructuring expenses” in the group’s supply chain and e-commerce solutions divisions, the German postal company stated.
In spite of the increase in operating profits, net profits of Deutsche Post DHL declined in Q2. Profits after non-controlling interests stood at 458 million euros, 11.2 percent lower than in the same period last year.
The decline in net profits was attributable to an “exceptionally low tax rate” in the previous year, according to Deutsche Post DHL.
The German postal company noted that it was expecting the second half of the year to improve slightly.
Besides measures to improve productivity at the company’s Post & Parcel division, “the postage rate increase as of July 1 will provide further momentum in the second half of the year,” said CEO Appel.
Deutsche Post DHL slightly lifted the lower end of its business guidance and is now expecting operational profits to amount to between 4 and 4.3 billion euros in 2019.
For 2020, the German mail and logistics company is anticipating its operational profits to increase even further to more than 5 billion euros.
Following the publishing of Deutsche Post DHL’s Q2 results, investors reacted positively as shares of the German postal company increased by more than 4.5 percent and were the winner on the German stock index DAX on Tuesday.