Pre-tax profits at the Irish arm of international distribution giant DHL last year fell 7% to €1.6m despite a 5% increase in revenues.
New accounts lodged by DHL Express Ireland Ltd (DHLI) show the firm recorded the drop in pre-tax profits, as revenues rose 5% to €84.32m in 2015.
The increase in the firm’s revenues came after DHLI restructured its business here in 2010 to scale back its domestic delivery service, including the closure of five DHL service centres with the loss of 300 jobs. It recorded an operating profit of €1.86m.
Meanwhile, interest payments and other financial expenses totalled €275,000.
The directors say that the company “continues on a successful profit path which was initiated in 2009 with the strategy to scale back domestic delivery services and to refocus on core international air and road express business.
This marks the fifth consecutive year of profit for the company.”
They say the increase in revenues in 2015 was “primarily driven by the continued improvement in core international air express volumes and service”.
The report states: “Continued growth of business to consumer deliveries has, as expected, impacted upon the DHL cost position throughout 2015 but this has been off-set by on-going improvements in operational productivity and efficiency.”
Numbers employed by the firm last year continued to increase from 327 to 337, with 190 people employed in management and administration and 147 staff in operations.
The directors are listed as Bernard McCarthy, Michael Farrell, and Philip Couchman.
Pay for directors last year decreased from €672,000 to €657,000. Pay included €125,000 of benefits under a long-term incentive scheme.
Staff costs at the firm last year decreased marginally from €18.58m to €18.24m.
The directors say that the company will continue to focus on its core international air and road express business this year.
It says it is “seeking to provide the best service offer to its customers at the lowest operating cost”.
The profit last year takes account of non-cash depreciation costs of €849,000.
The filings show that the company’s “other operating charges” in the firm’s operations last year increased from €60m to €63.3m.
The directors says that ongoing growth was made possible by “a dedicated focus on the needs and requirements of the Irish customer base who are supported by DHL’s locally based award-winning customer service centre and sales teams”.
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