"Thanks to our good cash flow and strong balance sheet, we can afford to invest in the future."

Melanie, how would you assess DHL Group's performance in the second quarter?

Melanie Kreis: Given the challenging environment, we closed the second quarter with good results. In recent months, uncertainty in global trade reached new heights. Key factors included trade tensions, the escalation in the Middle East, and the ongoing war in Ukraine. This confluence of various issues affects global trade. In this environment, our global presence and diversified product portfolio pay off once again. DHL Group is uniquely positioned to support customers in diversifying their global supply chains. Therefore, we are seeing robust earnings development even in an uncertain environment.

Despite slower global trade momentum, DHL Group significantly improved its operating profit in the second quarter. How did the company manage to do that?

Melanie Kreis: We address slower volume development with strict cost discipline and consistent yield management. Additionally, we are working on structural cost improvements through our Group-wide Fit for Growth program and have already achieved initial successes. As a result, we were able to increase operating profit by almost 6 percent in the second quarter; the EBIT margin rose by 0.7 percentage points to 7.2 percent. And bear in mind that this was in a quarter that saw unfavorable currency developments for us overall. Without exchange rate effects, our earnings growth would have been even more significant.

An improved EBIT, but a declining free cash flow. How does that work?

Melanie Kreis: The decline in free cash flow mainly reflects our progress in implementing our Strategy 2030. We are investing organically and inorganically to expand our capabilities in important growth areas such as pharma logistics and e-commerce. In the second quarter, for example, we completed the acquisitions of CRYOPDP, a provider of courier services in clinical trials, biopharma, and cell and gene therapies, and IDS Fulfillment. Investments in digitalization, automation, and robotics are also high on our priority list because they improve our productivity and efficiency. Thanks to our good cash flow and solid balance sheet, we can afford investments in the future, thereby setting important milestones for growth. If we exclude the costs for acquisitions, our free cash flow after six months was above the previous year's level. This underscores, once again, our cash flow strength.

Investments in the world's largest growth markets are also a focus of Strategy 2030. How are you progressing?

Melanie Kreis: Very well. Our focus is on a total of 20 countries with significant growth potential, including Saudi Arabia and the United Arab Emirates. In June, we announced investments of around EUR 500 million in the Middle East. The region benefits from shifting global trade flows and companies diversifying their supply chains. It is geographically optimally located as a bridge between Asia, Europe, and Africa. DHL Group has been active and highly regarded in the Middle East for many years. We want to continue this positive development with strategic investments, for example in air freight. That way, we can better support our customers in the region and benefit from the global diversification of supply chains.

Let's take a closer look at the divisions. The second quarter also demonstrated the strength of DHL Group as a broadly positioned and diversified logistics company.

Melanie Kreis: In the past quarter, the divisions developed in different ways. Slower momentum in volume developments in some areas was offset by very strong performance in others. For example, in road freight, we are feeling the ongoing economic weakness in Europe. There was also no significant tailwind in air and sea freight. On the other hand, DHL Supply Chain showed strong results, including one-time effects, but also organically.

Staying briefly with the divisions DHL Global Forwarding, Freight, and DHL Supply Chain: Management changes were announced for August 16, 2025. DHL Supply Chain CEO Oscar de Bok will succeed Tim Scharwath at DHL Global Forwarding, Freight, and Hendrik Venter will become the new CEO of DHL Supply Chain. Could you give us some more details please?

Melanie Kreis: Correct. Tim Scharwath, CEO of DHL Global Forwarding, Freight, is retiring. Under his leadership, Global Forwarding, Freight has achieved and accomplished a lot in recent years. The division is more profitable, customer-oriented, and efficient today than it was when Tim was appointed in 2017. Oscar de Bok, in turn, hands over a division in top shape. It contributed more than EUR 1 billion EBIT to the Group's results for the first time in 2024. To continue the success story of DHL Supply Chain, Hendrik Venter is the right choice. He has over 15 years of leadership experience in the division and currently oversees business in 25 different markets. Oscar de Bok and Hendrik Venter are the ideal successors. They stand for continuity and stability, are experienced and respected. Overall, we can continue working with a top management team in both divisions on implementing our Strategy 2030 and thus on accelerating sustainable growth.

Back to the results of the other divisions: DHL Express increased its earnings despite declining shipment volumes in its core product, time-definite international shipments (TDI).

Melanie Kreis: DHL Express achieved earnings growth through a combination of effective capacity management, structural cost improvements, and price adjustments. On the one hand, our network adapts to the economic environment, and on the other hand, we increase our efficiency. This is achieved, for example, through improved operational processes or investments in more economical aircraft. The annual price increases also contributed positively to our profitability. However, high quality of our services always remains a priority at DHL Express. The combination of these different measures is showing impact.

At Post & Parcel Germany, revenue decreased, but EBIT increased. What are the reasons?

Melanie Kreis: Revenue development of Post & Parcel Germany reflects the ongoing and very significant decline in letter volumes. In the second quarter, this was a decrease of 9 percent compared to the previous year. We are also feeling the economic weakness in Germany. Parcel volumes continue to grow, but slower than before. The fact that the division was able to improve its operating profit despite these developments and the burden from collective wage agreements is also a result of our successful yield and cost management. After half a year, the division's operating profit is EUR 447 million, which is, as planned, above the previous year. Post & Parcel Germany must earn at least EUR 1 billion annually so that we can fund the investments for the transition from letter to parcel business and decarbonization.

After the turbulence of the past months: What do you expect for the second half of the year?

Melanie Kreis: The uncertainty remains. We are currently seeing many tough negotiations over new trade agreements. It is becoming apparent that the tariff level in international trade with the USA will rise above the level we have seen in recent history. The new tariff agreement between the USA and the EU shows us what we can expect. The outcome is certainly not what the proponents of free trade had in mind, but it is nevertheless a good thing that there's an agreement in place. The key factor here is reliability because that gives businesses the stability and planning security they need.  

However, there are also developments that tend to make me feel optimistic. Take the cautious change in sentiment in Europe for example. Germany is taking the lead with a significant fiscal stimulus, and many large companies are committed to investments in Germany. This could lead to a certain momentum. If Germany can overcome the recession, Europe will follow. We are well-positioned worldwide to support our customers in a variety of scenarios.

What does this mean specifically for DHL Group's guidance for the current fiscal year?

Melanie Kreis: We have seen little global economic momentum so far, and we do not expect this to change significantly over the course of the year. Accordingly, our guidance for the fiscal year 2025 remains unchanged. We continue to expect an operating profit of at least EUR 6 billion.