DHL’s retail logistics arm DHL Supply Chain posted a rise in both turnover and pre-tax profit last year, while sister companies DHL Tradeteam and DHL Express (UK) saw declines.

Pre-tax profit at DHL Supply Chain leapt by 49.5% last year to £56.8m, up from £37.9m in 2011, its financial results for the year ended 31 December 2012 show.

Turnover was up 5.2% to £3.5bn (2011: £3.3bn). It put this down to both organic growth from customers in the retail, public sector, automotive and consumer sectors, as well as renewed and retained business.

DHL is consolidating  its business so that DHL Supply Chain is the main UK trading entity. As a result contracts formerly reported in Exel UK and DHL Freight and Contract Logistics are being moved as they are renewed.

Exel UK reported a turnover of £190.8m in the same financial year, down from £214.3m in the previous year, turning a £7.6m pre-tax profit in 2011 into a £5.3m loss. DHL Freight and Contract Logistics turnover was down to £26.3m gfrom £37.1m, with pre-tax down from £2.3m to £716,000.

DHL Supply Chain has already won a number of  new contracts in 2013, including a 10-year deal with Gatwick Airport, a three-year contract with Volkswagen Group and a three-year warehousing and transport deal with Hankook Tyres UK.

Express

Sister company DHL Express (UK) - which reports its results as DHL International UK (Express) - saw turnover rise to £544.8m for the 12 months ending 31 December 2012 , from £495.3m in the previous year.

Pre-tax profit was £5m, compared to a pre-tax loss of £2.2m in the previous year.

It intends to sell its same day domestic division to Rico Logistics later this month.

Tradeteam

Turnover and pre-tax profit at drinks distribution arm Tradeteam also dropped, as it saw volumes in its core on-trade business continue to fall. Turnover dropped 9.8% to £144.5m for 2012, down from £160.3m the year before, while pre-tax profit also fell by 6.1% to £10.4m (2011: £11.1m).

In the report accompanying its annual results, Tradeteam said it was “positive about the outlook for 2013 and beyond” and was in discussions with both existing and potential new customers.

Earlier this year, it won a new contract with The Bramwell Pub Company, for distribution to its Smith & Jones, Varsity and Wild Lime Bar branches, and renewed business with Molson Coors.

Restructure

DHL Supply Chain’s results also revealed a shakeup in the firm’s business structure, which will see contracts formerly reported under the Exel UK and DHL Freight and Contract Logistics (UK) divisions, now reported by DHL Supply Chain.

DHL was unavailable for comment.

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