Deutsche Post confirms targets despite Q1 profit drop

13 May, 2017

German logistics group Deutsche Post said Thursday it was confident of meeting its objectives for the year, insisting that business was strong in the first quarter, even if its bottom line fell. Deutsche Post said in a statement that net profit slipped by 0.9 percent to 633 million euros ($688 million) in the period from January to March. But the decline was due to higher taxes, it explained.
Underlying or operating profit climbed by 1.4 percent to 885 million euros on a 7.3-percent increase in revenue to 14.9 billion euros in the three-month period. "Following a record year in 2016, the upward trend has continued at Deutsche Post DHL Group this year," chief executive Frank Appel commented.
Deutsche Post has pressed on with a long-term drive for efficiency and revenue growth, seeing "good results" in the six-year plan launched in 2014. Following a pattern that has become well-established in recent years, packages and e-commerce delivery services drove growth at the group between January and March, while it achieved further savings in its freight division.
Deutsche Post said it expects underlying or operating profit to reach 3.75 billion euros in the whole of 2017, up from 3.5 billion euros last year. And it is aiming to lift operating profit by an annual average 8.0 percent between 2013 and 2020.

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