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DHL reported better-than-expected operating profit for the latest quarter, supported by cost optimisation measures and effective capacity management amid geopolitical uncertainty. The company posted earnings before interest and tax of EUR 1.48 billion, exceeding market estimates, while maintaining its full-year guidance. Despite disruptions linked to conflict in the Middle East and rising fuel costs, DHL indicated that the impact on operations remained limited. Organic revenue grew 2 per cent, though at a slower pace year-on-year, reflecting moderated demand conditions and evolving global trade dynamics.
DHL reported a higher-than-expected operating profit for the latest quarter, supported by cost management initiatives and capacity optimisation, even as geopolitical developments continued to affect global supply chains. Advertisement
The company posted earnings before interest and tax (EBIT) of EUR 1.48 billion during the quarter, surpassing analyst expectations of EUR 1.38 billion. Operating margins improved to 7.3 per cent from 6.6 per cent in the corresponding period last year, reflecting structural cost improvements implemented over recent quarters.
DHL indicated that geopolitical uncertainty, particularly arising from tensions in the Middle East, has created volatility in global logistics networks. Disruptions to shipping routes and airspace have added complexity to operations, while rising fuel costs have increased input expenses. However, the company stated that these cost increases have largely been passed on to customers, limiting the impact on profitability.
The company maintained its full-year guidance, noting that its operational resilience and diversified network have supported performance despite external pressures. It also highlighted that cargo movement has continued without significant disruption, even in the face of constrained routes and evolving supply chain conditions.
Organic revenue growth stood at 2 per cent for the quarter, slightly lower than the 2.4 per cent growth recorded in the same period last year. The moderation reflects a normalisation in demand following earlier periods that saw elevated shipment volumes linked to pre-emptive trade activity.
DHL also noted that it has been engaging with suppliers to secure fuel availability, amid concerns in the aviation sector regarding potential shortages linked to disruptions in key energy supply routes. The company indicated that discussions to ensure continuity of fuel supply are progressing.
The performance comes against the backdrop of a broader cost-efficiency programme launched by DHL over the past year, aimed at protecting margins amid trade disruptions and fluctuating demand. Analysts indicated that the company’s results demonstrate relative stability within the logistics sector, supported by disciplined cost management and operational scale.
Shares of DHL moved higher in early trading following the results, reflecting positive investor sentiment. The company’s update underscores the importance of cost control and network flexibility in navigating a volatile global trade environment.
Source - Reuters
5th Jun, 2025
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