Deutsche Post Food produce delivery to bring growth
Bochum · Deutsche Post’s Chief Executive Frank Appel confirms Amazon fresh food deal at the shareholder meeting
When world trade is doing well, things are also going well for Deutsche Post DHL. For there are more packages, letters and express deliveries to be transported. Approaches which close off domestic economies, as US President Donald Trump has announced, do not fit the concept at all, “I know of no country which has done better through a policy of protectionism,” says Chief Executive of Deutsche Post Frank Appel in front of around 900 shareholders at the shareholder meeting of the Bonn corporation in Bochum. He is optimistic that world trade will develop positively despite this trend. “World trade provides wealth and wealth provides peace”, says Appel.
Most of the shareholder representatives who were vocal at the meeting indicated that they are pleased with the company’s financial course. “If you have a securities account, you are well served by this company,” says Daniel Vos, spokesman for the SdK, the German Association for the Protection of Capital Investors. Questions were asked about specific issues rather than overall policy. “Do we now want to become the Tesla of transport logistics?” asked Roland Klose from the DSW, the German Protective Association for Security Holdings, after the Post set up its electric car called Streetscooter at the Ruhrpark Congress Centre. The US car maker is more of a by-word for the development of electro mobility than others. Appel underlined the aspiration “to become the motor of electromobility and market leader in green logistics”. The company wants to double the production of the electric delivery vehicle Streetscooter to 20,000 by the end of the year. The Post has already found its first external customers for the delivery truck. The development was borne out of the lack of an electric vehicle on the market which fitted the specific needs of the Post.
Appel firstly confirmed to the shareholders that the Post will be delivering fresh food products for the US internet giant Amazon. Up to now Amazon Fresh has only been found in a few towns and cities in the US and the UK. First reports about this were heard in March. To begin with, the food products will be delivered in Berlin and then rolled out across Germany.
Deutsche Post will limit itself to small take-overs: “we do not wish to buy the big players,” says the Chief Executive. Appel dismissed the question from the shareholders as to whether competitors like as UPS and FedEx will soon be overtaking the Post as the world’s biggest logistics companies. “We are in a tremendous position”, he said.
Deutsche Post is extending its network beyond Europe and investing in the USA. The corporation is the world leader in India and is also active in Malaysia und Chile.
With 99.93 percent of the company’s equity capital the shareholders decided on the payment of a dividend of 1.05 Euro per share. This corresponds to an increase of 20 percent compared with last year and is the highest since flotation in 2000. This year the dividends for domestic shareholders will also be distributed tax-free. In response to the question of how long the taxable deposit account will be full enough to allow for tax exemption, Appel gave the all-clear: it will remain like this for several years.
At the end of the shareholder meeting, the Head of the Board of Directors Wulf von Schimmelmann announced that the next shareholder meeting in the coming year will take place in the World Conference Centre in Bonn (WCCB).
The smaller shareholders are wondering whether this change of location will bring china crockery with it - for the second year in a row they criticsed the use of plastic cups, plates and cutlery for the shareholders. Not even the china cups which were brought along were filled up by the service staff – as they could be misused as projectiles.
(Original text: Claudia Mahnke, Translation: Caroline Payne)