DHL making „good progress” despite COVID crisis and pays EUR 300 bonus to all employees worldwide
You can read this article in 6 minutes
Last week, Deutsche Post DHL presented its results for the first half of 2020. The group seems to be doing well despite the coronavirus crisis. Employees will receive a EUR 300 bonus in the third quarter to have a share in the success.
This year’s Annual General Meeting of Deutsche Post AG took place virtually. The majority of the shareholders approved the unchanged distribution of a dividend of EUR 1.15 per share compared to the previous year. The vast majority also approved the discharge of the executive board and the supervisory board, the appointment of the auditor, the capital-related resolutions and changes to the articles of association.
According to DHL, the group is making good progress despite the coronavirus crisis, therefore, CEO Frank Appel is confident about the results for the current entire year and the medium-term financial targets.
We managed to implement the right measures in many areas and the Deutsche Post DHL Group will emerge stronger from this crisis, says the Group’s CEO.
Globalization is not over
For 2020 DHL expects an operating result between 3.5 and 3.8 billion euros and for the year 2022 and EBIT of around 4.7 billion to over 5.3 billion euros. According to Appel, the good result of the group is due to the robust business model and a clear strategic orientation.
The strategy focuses on the right topics: globalization, e-commerce, digitization and sustainability. These trends have become all the more relevant in this time of crisis or are even accelerating rapidly due to the pandemic, according to Appel.
Contrary to the opinion of many, Appel sees globalization as the solution, because the coronavirus crisis has once again made clear the importance of a networked world – be it in terms of research or goods transport.
The effects of the pandemic would have been considerably more severe without global exchanges. We do not believe in an end to globalization. On the contrary. It’s too important. And we pride ourselves on making it possible on behalf of our customers. Nobody does globalization better than we do, says the CEO.
E-commerce will grow, digitization will accelerate
Appel sees considerable growth potential in e-commerce, which will continue to offer entrepreneurs growth opportunities.
If you have a convincing idea, the world market is open to you. That’s billions of potential customers, said Appel.
According to Appel, the pandemic has also accelerated digitization. Therefore, Deutsche Post DHL Group intends to continue to invest money in the digital strategy until 2025, but also to focus on topics such as sustainability and climate change.
We are not resting on our laurels. We want to reduce our emissions to zero. This also supports our customers, as they are increasingly dependent on environmentally friendly logistics. Nowadays, providers who can offer environmentally friendly logistics have a competitive advantage, says the CEO.
300 euros for each employee
Appel was more than satisfied with the financial results for the first half of 2020. All five business areas were profitable. The consolidated sales for the second quarter by 3.1 percent to 16 billion and operating profit by 18.6 percent to 912 million euros. The good results are mainly due to the boom in e-commerce.
Although the group did not want to reward its employees with a bonus at the beginning of the pandemic, the group now wants to pay all employees worldwide a one-time bonus of EUR 300 in the third quarter. In addition, the Board of Directors has paid thea proposed dividend of 1.,15 euros per share proposed. Should the proposed dividend be approved by the shareholders, the group would pay out a total of around 1.4 billion euros to the shareholders.
New members on the supervisory board
The election of two new Supervisory Board members was also on the agenda of the Annual General Meeting. The term of office of Roland Oetker, Honorary President of the DSW Deutsche Schutzvereinigung für Wertpapierbesitz eV, ended at the end of the Annual General Meeting. Werner Gatzer, State Secretary in the Federal Ministry of Finance, on the other hand, resigned in February of this year as part of the assumption of a supervisory board mandate at Deutsche Bahn AG.
In their place were Lawrence A. Rosen, CFO of Deutsche Post AG from 2009 to 2016 with 96.63 percent of the votes, and Dr. Jörg Kukies , State Secretary in the Federal Ministry of Finance, elected to the Supervisory Board of Deutsche Post AG with 95.13 percent of the vote.
Photo: DHL Deutsche Post