Deutsche Post DHL announces 'Strategy 2025', to invest EUR2bn in digitalisation

Deutsche Post DHL Group announced (01-Oct-2019) its new 'Strategy 2025' group strategy, under which the company will focus on "harnessing the sustained potential for profitable long term growth contained in its core logistics businesses". E-commerce is expected to remain one of the main drivers for growth within the core logistics businesses. DHL intends to invest approximately EUR2 billion in digitalisation by 2025 and the investment is expected to lead to yearly run rate benefits of at least EUR1.5 billion by 2025. Digitalisation will involve modernising IT systems, integrating new technologies and offering targeted training to employees to improve services, processes and standards. The company also confirmed its group EBIT guidance of more than EUR5 billion for 2020 and its target of increasing operating profit to at least EUR5.3 billion in 2022. CEO Frank Appel commented: "Deutsche Post DHL Group has never been in better shape. We are convinced that future growth will come from a consistent focus on our profitable core logistics businesses - and digitalisation will become the greatest lever". [more - original PR]