Despite a 7.3 percent, year-over-year, increase in revenue during the second quarter, Deutsche Post DHL saw net profit plunge 28 percent, year-over-year, to €201 million. In a press release, DHL attributed this discrepancy to a one-time VAT payment, which impaired the company’s earnings by €115 million in the second quarter.
Group EBIT also took a hit during the second quarter, with DHL’s earnings before tax and interest sliding 3 percent, year-over-year, to €543 million. Even so, the German postal and logistics firm saw double-digit revenue and volume growth in its parcel sector during this period, according to the press release.
Frank Appel, CEO of Deutsche Post DHL, said he’s encouraged by the company’s second-quarter results. “We continue to perform well,” he said in a statement. “The excellent market positions of our brands and divisions in the world’s growth markets are paying off. We have a strong foundation for generating long-term improvements in revenues and earnings.”
In anticipation of this growth, DHL revised upward its earnings outlook for the fiscal year. DHL now expects to post a group EBIT in the €2.6 billion-to-€2.7 billion realm, the company revealed in the press release.
DHL’s expansion in the Asia-Pacific contributed greatly to the forecast revision. Last month, DHL Express opened its $175 million North Asia Hub at Shanghai Pudong International Airport, a facility that spans 105,000 square yards and can process up to 20,000 documents and 20,000 packages an hour. Less than one week later, DHL Supply Chain unveiled its MegaHub in Tsing Yi Island, Hong Kong. The nearly 900,000-square-foot MegaHub serves as the company’s Hong Kong headquarters and represents a €63 million investment by the German postal and logistics firm.
Although the Asia-Pacific already holds a big chunk of DHL’s global business — nearly 20 percent — company executives hope to increase that number even more in the near future. By 2017, profits generated in the Asia-Pacific should account for nearly one-third of the company’s total revenues, Appel asserted during a recent press conference.