Deutsche Post DHL Group has seen its first half net profit increase to 1.1 billion euros ($1.2 billion) from 821 million in 2015 with the Express division growing while Global Forwarding struggled.
The profit growth came despite revenue falling to 28 billion euros from 29.4 billion due to currency effects and revenue generated from abroad falling.
Deutsche Post DHL Group chief executive officer, Frank Appel says the company is on the right track as the operating profit increased to 1.6 billion euros.
“Our successful business performance and the strong increase in operating profit we achieved in the second quarter demonstrate that we took the right decisions and made the right investments in 2015, a year of transition, to set the stage for improving our profitability this year and in the years to come.”
The freight division saw revenue fall be 10.8 per cent in the first half to 7.5 billion euros, with Global Forwarding seeing revenue drop by 15.7 per cent to 4.7 billion euros. Airfreight revenue was down 17.3 per cent to 2.1 billion euros due to declines particularly in the technology sector, as well as “withdrawing from selected business activities with insufficient margins”. Volumes were down 7.7 per cent to 1.7 million tonnes.
Express posted better results, with revenue increasing 1.2 per cent to 6.7 billion euros and operating profits up 9.7 per cent to 777 million euros.