Deutsche Post DHL Group has reported a jump in operating profit of 18.1% for the second quarter of 2020. This was mainly driven by strong growth in e-commerce.
Frank Appel, chief executive officer, Deutsche Post DHL Group, commented: “More than on any occasion before, the crisis has shown the resilience of Deutsche Post DHL Group. Thanks to the tireless efforts of our 550,000 employees worldwide, we have been able to secure supplies to the world and maintain important supply chains for the industry – even in extremely challenging times.
“Especially now, our focus on our profitable core logistics businesses and the digital transformation of the company as part of Strategy 2025 pays off. We have never been in better shape and I am confident that our company will emerge stronger from the crisis.”
The Group’s operating cash flow totaled EUR 1,646 million in the second quarter (2019: EUR 1,265 million) and bolstered the Group’s continued strong financial situation – even during times of crisis. Free cash flow rose significantly to EUR 605 million (2019: EUR -547 million). This exceptional result was based on the very healthy development of the operating profit and the planned lower investment in the intercontinental fleet compared with the peak in Q2 2019.
“We have shown an exceptional free cash flow development in the first half of the year,” CFO Melanie Kreis said. “Our ability to do so in the middle of the crisis demonstrates the true effectiveness of the measures we have taken to strengthen free cash flow. Thanks to our strong balance sheet, we can afford to invest further in the profitable growth of our core businesses.”