Royal Mail sees Christmas parcel boost as £3.6bn takeover nears completion
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The owner of Royal Mail, International Distribution Services (IDS), has announced it's on track for an annual profit comeback following a Christmas parcel surge, as the £3.6bn acquisition by Czech tycoon Daniel Kretinsky edges closer to completion. IDS reported that Royal Mail successfully delivered over 99% of items posted on or before the recommended deadline in time for the festive season. During the quarter ending December, Royal Mail saw a revenue increase of 2.4%, with parcel sales rising by 3.2% and letters by 1.4%.
Despite a 7% drop in addressed letter volumes, higher stamp prices helped balance the scales. Parcel volumes in the UK held steady at 334 million, but revenue climbed by 2.5% to £1.02bn due to price hikes, and international performance also improved, with revenues soaring by 6.6% to £227m. IDS is confident about achieving an adjusted operating profit for the fiscal year 2024-25, "despite the difficult market environment".
The takeover by Kretinsky's EP Group is set to be finalised by the end of Q1, following Government approval last month. European and American regulators have also given the green light, IDS confirmed on Tuesday. Martin Seidenberg, CEO of IDS, commented: "At Royal Mail, we have made more progress to adapt to customer demand. Successful execution of our union agreements is bringing increased operational flexibility, which together with increased automation, and thousands of new vehicles, is leading to improved reliability.".
