[Estate News] A few days ago, DHL Express released its 2018 annual report. During the reporting period, revenue increased by 1.8% to 61.6 billion euros, and profit fell by 15.5% to 3.16 billion euros. Among them, the largest loss was postal parcels (PeP), where revenue increased by 1.7% to 18.5 billion euros, and pre-tax profits fell sharply by 56.4% to 656 million euros for the year.

It is reported that DHL will invest 502 million euros to reorganize PeP into Post und Paket Deutschland and DHL's e-commerce solutions department, which will take effect on January 1 next year. "In the Deutsche Post and parcel business, the group has taken measures to ensure the long-term EBIT growth of the sector, and also consciously accepts that this will bring a short-term burden on EBIT." The group CEO Frank Appel said.

The report shows that in 2018, DHL's Express division revenue grew the fastest, increasing by 7.3% to 16.15 billion euros, followed by EBIT growth, with an increase of 12.7% to 1.96 billion euros. This division achieved revenue growth in all regions and was driven by the growth of international timed delivery business, which increased by 7.4% year-on-year. The annual interest and tax rate of the global freight sector soared by nearly 49% to 442 million euros. Revenue in this sector was 14.98 billion euros, a growth rate of 3.4%. The annual revenue of the supply chain sector fell by 5.7% (13.35 billion euros), and EBIT fell by 6.3% (520 million euros).

In the fourth quarter of 2018, Deutsche Post DHL Group reported a year-on-year increase in revenue of 5.1% (16.93 billion euros) and a loss of 4% (1.13 billion euros) from operating activities. The EBIT of the PeP division fell 28.4% to 366 million euros, and revenue increased 1.5% to 5.13 billion euros. EBIT of the Express segment increased 14.2% to 570 million euros, and revenue increased 9% to 4.42 billion euros. Earnings before interest and taxes in the global freight sector increased by 30.9% to 161 million euros, and revenue increased by 5.6% to 4 billion euros. Revenue in the supply chain sector increased by 3.4% to 3.74 billion euros.

Deutsche Post DHL Group increased its investment by 16.8% in 2018 to 2.6 billion euros. The group plans to increase capital expenditures to approximately 3.7 billion euros in 2019, including 1.1 billion euros for the debt renewal of the fast aircraft fleet.