DPD expects alternatives to home deliveries to become more important
In the first six months of the year the international DPDgroup recorded revenue growth of 7.2 per cent to EUR 3.73 billion. This growth was driven by higher prices and surcharges, while parcel volumes grew only moderately by 2.3 per cent to 638 million.
The share of deliveries to non-business consignees (B2C) rose to 44 per cent. The largest markets, Germany, France and Great Britain, recorded solid growth in the single-digit percentage range, while DPD achieved the strongest growth of well over 10 per cent in Poland and the Benelux countries.
In the first half of 2019 DPD Germany’s turnover grew by 5.9 per cent. This was based on significant price increases and a consistent focus on high-margin segments such as international shipping as well as premium and express services. As a result, average revenues rose by more than 7 per cent. In order to increase profitability, DPD Germany deliberately curbed its growth and in some cases even terminated contracts with low-margin customers.
“After a challenging 2018 we can look back on a pleasing development in the first half of 2019,” explains Boris Winkelmann, CEO of DPD Germany. “We are confident that this positive trend will also be confirmed by the end of the year. At the same time, however, cost pressures and the market environment have by no means become any easier. Significant price increases will continue to be unavoidable for a healthy market development”.
In addition, DPD expects alternatives to home deliveries to increase considerably in importance: “In view of rising prices and the intensified debate on protecting the environment, we see strengthened demand for low-cost and environmentally friendly deliveries directly to a parcel shop.”
Substantial increases in wage costs and the industry-wide shortage of qualified labour are contributing to higher costs, as are new regulations such as increased toll costs and a higher minimum wage. In addition, DPD is investing in sustainable delivery operations – for example by using electric vehicles – and in the expansion and modernisation of its locations throughout Germany.