en.Wedoany.com Reported - Despite challenges posed by the Middle East conflict and exchange rate fluctuations, DHL Group's first-quarter revenue declined year-on-year, but operating profit rose 8.3%, benefiting from strong performance in its Express and Supply Chain divisions. Express division revenue fell 1.9% to €6 billion, yet pre-tax profit surged 20.6%, marking seven consecutive quarters of profitability. The division continues to advance its "Fit for Growth" program, aiming to cut over $1.2 billion in structural costs within three years. Although average daily freight volume decreased by 6%, the weight per shipment increased, driving higher revenue and profit.

Chief Financial Officer Melanie Kreis stated: "This high profitability, despite declining freight volumes, is no coincidence but the result of our tightly coordinated sales, pricing, and network costs." Chief Executive Officer Tobias Meyer noted that since 2019, investments in fuel-efficient Boeing 777 freighters to renew the fleet, along with the use of artificial intelligence to optimize vehicle maintenance, have effectively reduced costs. He mentioned that the Middle East conflict, which erupted at the end of February, had a limited impact on the quarter's overall earnings, and DHL maintained customer service by adjusting routes (such as shifting the Bahrain hub to Riyadh and Muscat) and strengthening the road network.

Global Forwarding division revenue decreased by 5%, with air freight volume growing 3.8% to 438,000 tonnes and ocean freight volume increasing 2% to 804,000 TEUs. Supply Chain revenue grew by 5.7%, benefiting from new customer wins and e-commerce expansion. The Group's adjusted revenue increased by 2% year-on-year, and it reiterated its full-year operating profit guidance of $7.25 billion. Capital expenditure rose 12.4% year-on-year to $605.75 million, primarily directed towards Supply Chain and German postal modernization, with electric vehicles accounting for nearly 60% of the fleet. DHL Freight recently launched differentiated trucking products, including Standard, Priority, and Direct services.

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