DHL grows air and ocean revenue by more than 40%

Substantial growth in air and ocean freight volumes, revenues, margins and operating profits helped Deutsche Post DHL Group to an extremely strong first-quarter (Q1) performance in which it quadrupled its net profit.

The group’s Global Forwarding, Freight (DGFF) unit increased its revenue by nearly a third – 32.7% – during the quarter to €4.8 billion “in an environment characterised by continuing capacity shortages on international transport markets”, particularly air and ocean markets. And in the Global Forwarding business unit, its air and ocean freight forwarding business, revenue rose by 43.6% to €3.59 billion – and excluding foreign currency losses of €160 million, the increase was 50%. The business unit’s gross profit was up from the previous year, by 19.1% to €699 million.

Meanwhile, revenue in DGFF’s European overland Freight business unit increased by a more-modest 7.4% to €1.193 billion in the first quarter of 2021, thanks to 10.8% volume growth “driven in part by B2C business in Scandinavia”. The business unit’s gross profit also rose, by 9.6% to €309 million.

Growth in air and ocean freight volumes

DGFF registered growth of 18.2% in air freight volumes in the first quarter of 2021, due mainly to increased demand from Asia and the United States. At the same time, available market capacity remained at a low level on account of the limitations on passenger flights.

First-quarter air freight revenues therefore rose by 59.3%, and gross profit improved by 27%.

Ocean freight volumes were up 8.8% year-on-year. Revenues from ocean freight recovered well from the previous year, growing 49.2% to €1.255 billion. At €215 million, the gross profit generated by ocean freight exceeded the prior-year figure by 45.3%. The market’s “sharply curtailed availability of free freight capacity was a major factor in the performance of this business”, DHL said.

EBIT up substantially year-on-year

The division’s EBIT grew from €74 million to €216 million in the first quarter of 2021. “Proactive capacity planning, optimised procurement and strict cost management played a role here, as did higher volumes in all areas,” DHL said. With the EBIT margin at 4.5%, EBIT amounted to 21.4% of gross profit.