DHL posted a quarter loss despite rise in online shopping

D

Deutsche Post DHL delivered more packages in the first quarter due to the corona pandemic, but suffered in other divisions from the worldwide virus outbreak. For example, due to restrictions on many national borders and lockdowns, the German logistics giant transported much less freight. As a result, the profit of the company was considerably lower.

In the first three months of the year, sales rose by just under 1 percent. The part delivering parcels saw the quantities of parcels to be delivered increase rapidly at the end of March. This increase continued after the reporting period, peaking around Easter. DHL already warned in the Netherlands about longer delivery times due to the crowds.

Much of the growth in parcel delivery was lost due to declining freight volumes. For example, air freight for Deutsche Post DHL fell by more than a tenth in the first quarter. The amount of mail delivered also fell, partly because advertisers sent fewer leaflets and other advertising material.

The operating profit halved compared to a year earlier to 592 million euros. Net profit was 335 million euros, compared to 776 million euros in the first quarter of 2019.

About the author

Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Categories