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Deutsche Post has no plans to divest letter mailing amid parcel system overhaul, says CEO

Deutsche Post has no plans to divest its letter sending by mail business, Chief Executive Tobias Meyer stated after the logistics huge announced on Monday it would overhaul the group's structure and make its German parcel business a standalone legal entity.

This is not a step towards separating the German letter organization. If we wanted to do that, there would be other methods to attain it, Meyer told Reuters by phone.

The letter and parcel organization in Germany are inextricably connected, he said.

While the company's management structure, with its 5 divisions, is simple, its hidden legal structure has ended up being complicated and overlapping, Meyer said, including that the restructuring strategies were focused on simplifying that complex legal structure.

DHL's post and parcel division uses around 190,000 people in Germany and runs through 82 mail centres and 38 parcel hubs. In the very first half of 2024, the division produced 8.4 billion euros ($ 9.34 billion) in income, contributing approximately 20% of the group's general income of nearly 41 billion euros.

In addition to restructuring, Meyer stated he intends to drive income growth, targeting a 50% increase by 2030 compared to 2023 levels. The brand-new method would concentrate on fast-growing areas and industries, along with the booming e-commerce sector, he said.

The majority of this sales growth is to be attained naturally ... we will definitely also make acquisitions, but the majority of the growth is to be attained naturally, he said.

(source: Reuters)