Royal Mail: parcels volumes up, letters down in 2017

25 January 2018

Royal Mail has reported that its parcel volumes were up 6% and letter volumes down 5% for the nine months up to 24 December.

In a trading update, Moya Greene, the CEO of Royal Mail, said: “We have had a good performance over the important Christmas period thanks to the hard work and dedication of our people. They pulled out all the stops to deliver a great Christmas for the UK.

“We remain the number one facilitator of e-commerce in the UK due to our significant investments to improve our customer offering. Parcel volumes in the nine months were up 6%, with 149m parcels handled over the December trading period. Letters performance was better than expected with addressed letter volumes down 5%. GLS delivered another strong performance with volumes and revenue up 10%. Overall, Group revenue was up 2%.

“Given our performance to date, we expect to see broadly similar volume and revenue trends in UK parcels and letters for the full year as in the nine months. In GLS, we expect underlying revenue growth for the full year to be broadly in line with the first half.”

While parcel volumes were up 6%, revenue was up by 4%.

Royal Mail added: “In UK parcels, the overall trends in the first nine months were broadly unchanged from the first half. 

“Parcel volumes were up 6%, with growth largely driven by a good performance in Royal Mail account parcels. Royal Mail Tracked 24/48 and Tracked Returns services saw continued strong volume growth of 31%.”

We’ll have more in the February issue of The SubPostmaster. 