Following a good start into the year, Deutsche Post DHL Group, stayed on track for growth in the second quarter 2021.
Revenue increased significantly by 22.2 percent to EUR 19.5 billion (Q2 2020: EUR 15.9 billion). Thanks to rising global business activities and steadily growing e-commerce, all five divisions benefited from a very strong demand for logistics services.
Shipment volumes reached a new record level and were transported more efficiently than ever before by Deutsche Post DHL Group. Operating profit (EBIT) increased to EUR 2.1 billion (Q2 2020: EUR 912 million).
“After the global economy had experienced an unprecedented downturn last year, all of our divisions now make a pivotal contribution to accelerate the recovery of global trade. Our entire team performed brilliantly in an environment that remained challenging, enabling us to achieve an outstanding quarterly result”, said Frank Appel, CEO of Deutsche Post DHL Group.
Express: growth in shipment volumes enables profitability
EBIT of Express more than doubled to EUR 1,177 million (Q2 2020: EUR 565 million) in the second quarter of 2021. Revenue increased by 31.8 percent to around EUR 6.0 billion. This success was based on the further improved utilization of the globally unique international network.
Express strengthened its aviation network by putting 11 additional aircraft into operations in the second quarter. International time-definite express (TDI) shipments increased by 20.2 percent, with growth across all regions of the world.
TDI volumes grew by 23.6 percent in Europe, in Asia Pacific by 9.8 percent and in Americas by 36.7 percent. The network was thus utilized with outstanding efficiency. At 19.8 percent, the EBIT margin significantly exceeded the prior-year figure (Q2 2020: 12.5 percent).
Global Forwarding, Freight: growth in earnings accelerated by a significant increase in productivity
Global Forwarding, Freight was able to increase EBIT by 64.2 percent year-on-year to EUR 312 million. Revenue improved to EUR 5.2 billion (Q2 2020: EUR 4.1 billion) in a market that remained challenging.
While ocean freight volumes were on pre-pandemic level (but +20.5 percent year-on-year), air freight volumes increased even significantly above the pre-pandemic level (and +35.7 percent year-on-year).
In an environment characterized by continued dynamic development of air and ocean freight rates, the division benefited not only from higher volumes but also from productivity gains. The significant improvement in EBIT margin to 6.0 percent (Q2 2020: 4.6 percent) was also due to digitalization projects such as the implementation of a new transport management system.
eCommerce Solutions: growth in international parcel business continues unabated
EBIT of the eCommerce Solutions division jumped from EUR 1 million in the prior-year quarter to EUR 116 million in the second quarter of 2021, while revenue climbed 23.4 percent to EUR 1.4 billion (Q2 2020: EUR 1.2 billion).
Network capacity utilization in the international parcel business once again increased significantly compared with the previous year. Significant revenue growth of more than 25 percent was achieved in Cross Border Solutions, which enables European online retailers to ship across Europe with DHL Parcel Connect. With an EBIT margin of 8.1 percent, profitability in the second quarter was significantly above the prior-year figure of 0.1 percent.