Seur: international business forms basis for optimistic outlook
The Spanish express company Seur has increased its sales revenues by 8.1% compared to the same period last year and remains bullish regarding its full year turnover. Seur’s positive outlook seems well founded: its alliance with France’s GeoPost has been particularly successful, driving significant growth in Seur’s international business.
Seur has also announced that the company foresees reaching E544.6 million turnover for the whole of fiscal 2004, which would represent a 9% increase year-on-year. This growth will be driven by increased sales from the company’s international business.
Seur has traditionally concentrated on its domestic market, though it enjoys a significant presence in neighboring Portugal. The lack of an extensive international coverage has made it very difficult for Seur to compete with global integrators and pan-European players in the international services segment. This, however, has not stopped the company from achieving a leading position in its home express market, with an estimated 17.8% market share.
Nevertheless, the entry of international players into the Spanish market, partly driven by ever closer economic ties within the European Union, has resulted in increased competition. Unsurprisingly, DHL has been at the vanguard of the internationalization of the Spanish express sector: it has significantly expanded its business in the Iberian Peninsula by acquiring and integrating local transport company Guipuzcoana Express. The combined results from the existing DHL International operation and Guipuzcoana would give DHL Iberia an estimated 17.9% market share, putting it on a par with Seur and another domestic force, MRW. Increased outbound delivery volumes, particularly to the rest of the EU, have also highlighted the growing importance of the international business segment.
Last summer’s agreement between Seur and GeoPost, part of La Poste, opened up a solution to the former’s international weakness. The agreement allows Seur to distribute its international shipments through GeoPost’s extensive European network, resulting in more coverage and shorter delivery times. The alliance with GeoPost has already borne fruit for Seur, which saw its international delivery volumes increase 23% in July compared to the same period last year, and this encouraging performance gives the company’s upbeat forecast a solid basis.
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