Shipping business paid “Deutsche Post”. Sales revenue increased by a quarter.
Bonn. In the logistics group German Post Earnings trends from the beginning of the year continued into the second quarter. At least thanks to higher transportation rates in international business for corporate clients, lower volumes from the private customer area have more than compensated. On Friday, the group announced that the Post had double-digit growth in profits and sales. The administration confirmed its guidance for 2022 and 2024.
Sales in the second quarter increased by almost a quarter to €24 billion. Of this, €2.3 billion remains in operating profit before interest and taxes (EBIT). This is more than twelve percent more than the previous year and also more than analysts had expected. Six months later, operating profit is €4.5 billion, so it’s on track to surpass 2021’s full-year profit.
With management around CEO Frank Appel projecting a five to five per cent range in its annual forecast based on a 2021 operating result of €8 billion, the forecast is now set: Depending on economic development – i.e. extreme cooling of the global economy or just Gradual slowdown in economic growth – operating profit will be greater in the lower or upper half. If business development continues unchanged, it could exceed the previous maximum target of 8.4 billion euros. The arrow rose sharply.
Withdrawal from Russia
Meanwhile, Deutsche Post will not continue its national business in Russia. “We made that decision last week,” Appel said.
CFO Melanie Criss explained that the decision will lead to value adjustments in the third quarter. The volume corresponds to the value adjustment from the first quarter. At that time, lower business expectations in Russia led to a 30 million euro drop. The decision now made initially concerns national business in Russia, that is, shipments and transportation within the country. Abel said there are still contractual obligations in the field of import and export.
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