Logistics giant DHL Group on Wednesday reported a sharp rise in profit in the second quarter thanks to solid express demand.
The company confirmed that its revenue and earnings had climbed in the second quarter. Group revenue soared by 13 percent to 22.4 billion euros (25.9 billion U.S. dollars) and earnings before interest and taxes (EBIT) increased by 30 percent to 1.9 billion euros (2.2 billion dollars) year-on-year.
The revenue growth was mainly driven by strong demand for DHL Express, a global division of the DHL Group that provides fast, time-definite, door-to-door delivery of documents and parcels. Capacity constraints in the international air freight market and the pass-through of increased fuel costs also contributed to revenue growth, said the group.
As demand for express services increased in the second quarter, the revenue of the Express division surged by 21.5 percent to 7.13 billion euros (8.2 billion dollars).
"The strong revenue and earnings performance in the second quarter demonstrates that the consistent execution of our strategic measures is paying off," said Tobias Meyer, CEO of DHL Group.
DHL Group's solid Q2 results were helped by the continued expansion of the parcel volumes and global network strength in a volatile market environment, the firm said.
"Disciplined yield and capacity management, along with structural cost improvements achieved through the 'Fit for Growth' program, supported earnings growth," the company stated, emphasizing that "in an increasingly complex environment, the ability to manage global supply chains securely and efficiently is becoming even more important."
Based on its positive development in Q2, DHL Group raised its annual forecast in July, now expecting an operating result of over 6.5 billion euros (7.5 billion dollars) for 2026.