BONN (dpa-AFX) - Deutsche Post DHL Group (DPSGY.PK), a German package delivery and supply chain management company, reported Friday higher profit in its first quarter, driven by strong sales growth. Looking ahead, the company confirmed its earnings forecast for fiscal 2019, and continues to project operating profit of 3.9 billion euros to 4.3 billion euros.
For its first quarter, Deutsche Post's consolidated net profit climbed 24.3 percent to 746 million euros from last year's 600 million euros. Earnings per share grew significantly to 0.60 euro from 0.48 euro last year.
Profit before income taxes rose by 225 million euros to 995 million euros. Profit from operating activities or EBIT climbed 28.1 percent to 1.16 billion euros. EBIT margin was 7.5 percent, up from 6.1 percent a year ago.
Meanwhile, Post & Parcel Germany division's EBIT was down 44 percent to 227 million euros, due mainly to higher costs for material and labour.
Group EBIT after asset charge or EAC grew 66.5 percent from last year to 521 million euros.
Total revenues for the period increased 4.1 percent to 15.35 billion euros from last year's 14.75 billion euros.
Revenue in the newly structured Post & Parcel Germany division was 3.83 billion euros, up 0.7 percent, boosted by growth in the Parcel business unit with improved volume. Meanwhile, in the Post business unit, revenue was 3.6 percent below the prior-year level as volumes declined 2.8 percent.
Revenue in the Express division increased 5.3 percent to 3.97 billion euros. In the Global Forwarding, freight business unit, revenue increased 4.8 percent to 3.76 billion euros. Supply Chain business revenue grew 4.6 percent to 3.27 billion euros.
The AGM for financial year 2018 will be held on May 15.
In Germany, Deutsche Post shares were trading at 28.89 euros, up 0.21 percent.
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