"We had a good start to the year"

Melanie, let's start by looking at the numbers for the first quarter: How do you evaluate the first quarter for DHL Group? 

Melanie Kreis: We had a good start to the year. All divisions achieved revenue growth, and as a Group, we also increased EBIT. We managed to keep the positive revenue and earnings momentum from previous quarters in a still very challenging environment. The economic dynamic in Germany and Europe was and remains weak. Although U.S. tariff policy only gained new momentum at the beginning of April, customer uncertainty was clearly noticeable in the first quarter. In such an environment, our successful cost and yield management comes into play. And our Group-wide program "Fit for Growth," which aims to structurally improve our cost base by more than EUR 1 billion, has also already contributed to the positive EBIT development.

Overall, we are well-positioned thanks to our diversified portfolio, our experience in dealing with difficult situations in global trade, and our efficiency measures. Accordingly, our guidance for the fiscal year 2025 remains unchanged. We continue to expect an operating result of at least EUR 6 billion and free cash flow (excluding M&A) of approximately EUR 3 billion. However, we explicitly do not account for potential effects from changes in tariffs and trade policies, which could have significant negative but also positive impacts on our business.

The customs situation is changing almost daily. How do you handle that?

Melanie Kreis: The pace of developments is challenging, especially for our colleagues in operations and customs clearance. Volatility has increased significantly for them. But we are agile and can quickly adapt to new circumstances. We have proven this many times - during the pandemic, the crisis in the Red Sea, or when a volcano in Iceland paralyzed European air traffic. Now, once again, we can draw on our extensive experience in managing volatility.

Can you already foresee how the customs disputes will impact global trade and DHL Group's business in the coming quarters?

Melanie Kreis: Volatility is very high right now, although global trade is more robust than many believe. However, trade patterns are changing for sure, and this dynamic is likely to increase in the coming weeks. Goods and shipments will be rerouted, which also creates opportunities for us. On the one hand, our global presence makes us significantly less dependent on the US market than many of our competitors. On the other hand, trade continues even with tariffs. It just becomes more expensive and complex. We cannot spare our customers the tariffs, but we can take the complexity off their hands. In short, we are closely monitoring the situation and feel well-prepared for various scenarios.

How do the subdued global economy and trade conflicts affect investments in future growth for the Group?

Melanie Kreis: Of course, we adjust our investments and cost structure to the economic cycle. This is particularly important for divisions like Express or Global Forwarding/Freight, which are more sensitive to macroeconomic developments. However, our approach goes beyond short-term cost management. With Strategy 2030, we have set clear growth targets, and we are pursuing them in two ways: Firstly, we continuously invest in high-growth markets and sectors; secondly, we are making ourselves leaner and more efficient overall. We call this "Setup for Success." As part of this, we are focusing even more on increasing the return on invested capital. This means not only growing EBIT but also using invested capital as efficiently as possible. Our Group-wide program "Fit for Growth," which aims to structurally improve our cost base by more than EUR 1 billion, fully contributes to capital efficiency.

Post & Parcel Germany significantly increased its earnings in the first quarter. Is this solely an effect of the recently implemented postage increase?

Melanie Kreis: The new prices in the letter business have made the expected and urgently needed contribution to earnings. This was the first postage increase after three years of very high inflation, and starting in the second quarter, costs will rise again due to the agreed-upon wage increase. We also see a positive one-time effect from the federal election. However, this does not hide the ongoing structural trend in the market: Costs have risen sharply and continue to rise, letter volumes have already declined significantly, and the accelerated volume decline continues. Overall, we still believe that the approved price framework is set too low, especially since it does not account for the past increase in unit costs. Under these conditions, it is not feasible for Post & Parcel Germany to maintain the profitability needed for future investments in the long term. 

Let's look at the global logistics businesses of the DHL divisions. How do you evaluate the first three months?

Melanie Kreis: Overall, it was a solid result. Express managed to counter the expected volume decline with successful cost and capacity management and remains highly profitable. At eCommerce, we continued to invest strategically in our network. Our clear goal is to gain further market share. Revenue grew significantly again, and the EBIT development reflects depreciation effects. The Global Forwarding business showed overall robustness. However, the Freight unit, our road freight business in Europe, is feeling the economic weakness in Germany and Europe - especially in the automotive sector. This is particularly noticeable when looking at EBIT. Supply Chain remains stable. The division continued to invest in digitalization and was able to win many new customers in the first quarter. Revenue, EBIT, and margin continue to grow.

With Strategy 2030, you aim to accelerate sustainable growth in all divisions. Regions and economic sectors with strong growth potential play a significant role. Can you give us an insight into the Group's plans?

Melanie Kreis: With our Strategy 2030, we aim to accelerate sustainable growth - that is, growing above global GDP and profitably. Therefore, we invest specifically in regions that show above-average growth dynamics. This means strengthening existing capacities or building new capabilities in the respective markets. Turkey, where DHL eCommerce recorded double-digit revenue growth rate in the first quarter, is a good example. There are also sectors that are growing strongly, such as life sciences and healthcare. This market is expected to grow by 10 percent annually until 2030. With DHL Health Logistics, we have established our own brand to bundle our competencies. We will invest around EUR 2 billion until 2030 to meet the growing demand in the pharmaceutical industry, medical devices, and growth areas such as biopharma and cell and gene therapies. With the acquisition of CRYOPDP, we have already made an important strategic purchase in the first quarter, strengthening our capabilities in specialized pharmaceutical logistics.

Therefore, we see good opportunities for profitable growth in line with our Strategy 2030, even in the current volatile and challenging economic environment.