DPD Group: in the span of 2 years, revenues have increased by more than 60%
GeoPost/DPDgroup has announced record annual results, with a 14.8% increase in revenue, more than 2 billion parcels delivered worldwide and an operating profit above 1 billion euros for the first time in its history.
In an environment still impacted by the global health crisis, which contributed to the strong growth dynamics of e-commerce, GeoPost/DPDgroup played its part to support the rebound of economy activity across the world.
In 2021, the company launched its “Together & Beyond” strategic plan, with the aim to make GeoPost/DPDgroup the international reference in sustainable delivery and a leading enabler of the e-commerce acceleration.
In 2021, GeoPost/DPDgroup built on the momentum of 2020 and delivered strong operational and financial performance. The company consolidated its development in key segments, while continuing its international expansion:
- €14.7 billion in revenue, up 14.8% from 2020, already a record year
- Operating profit above €1 billion (€1.057 billion), up 25% from 2020
- 2.1 billion parcels delivered worldwide, equivalent to 8.4 million parcels per day
- GeoPost/DPDgroup broke its daily volume record with 12.2 million parcels handled in Europe on Cyber Monday in November 2021 (+2% versus 2020)
- Strengthening of the company’s position in Europe and internationally, with the takeover of Speedy AD in Bulgaria and DPD Romania and the acquisition of TIPSA in Spain, with the increase in its equity stake in Ninja Van (Southeast Asia) and with an equity investment in Aramex (Middle East)
- Developed out-of-home delivery with the acquisition of 25% of PUDO24, a network of lockers in Spain and Portugal, and the deployment up to 70,000 Pickup points (lockers and parcel shops) in 31 countries
- Accelerated growth in specific market segments such as healthcare and food services, through organic growth and acquisitions such as Epicery (majority stake) in France and BK Pharma Logistics in the Netherlands
Yves Delmas, CEO and COO Europe of GeoPost/DPDgroup, said:
“The results achieved in 2021 are impressive and consolidate GeoPost/DPDgroup’s powerful growth momentum: in the span of two years, revenues have increased by more than 60% and the company’s operating profit has more than doubled. This remarkable performance was made possible by the daily commitment of each and every member of our team. These results are a testament to the exceptional work of Boris Winkelmann, Chairman and CEO of GeoPost/DPDgroup, whose tragic death last December deeply moved us all.”
A market environment leaning towards normalcy
2021 was once again shaped by the global health crisis, which impacted consumer habits and behaviour and continued to support strong growth in e-commerce in Q1, with a 34% increase in volumes of parcels handled by GeoPost/DPDgroup. From Q2 to Q4, with the end of the lockdown in most countries, business growth returned to near pre-Covid-19 levels at 7%, and over the full year, volumes increased by 14% vs 2020.
As illustrated by GeoPost/DPDgroup’s 2021 e-shopper barometer, some pandemic trends are here to stay, such as the growth of the food segment: a full 35% of regular e-shoppers have ordered fresh food and beverages online since January 2021.
In 2021, GeoPost/DPDgroup started to successfully implement its 2025 strategic plan
As part of La Poste Groupe’s strategic plan, GeoPost/DPDgroup has outlined its transformation path to 2025, with the ambition to become the international reference in sustainable delivery and a leading enabler of the e-commerce acceleration, as well as achieving a turnover of €252 billion. This trajectory is mainly based on 3 pillars:
- Expand core activities
- Accelerate initiatives in strategic segments
- Conquer new horizons
Expanding core activities
In 2021, GeoPost/DPDgroup continued to strengthen its core business through significant operations such as the takeover (69.8%) of Speedy AD in Bulgaria and DPD Romania, the acquisition of 100% of TIPSA in Spain, 100% of Fast+Furious in South Africa, and the merge of Geis parcel activities in DPD Czech Republic and Slovakia.
GeoPost/DPDgroup is now the leading international parcel delivery network in Europe, with strong positions in most countries:
- 1 in France, Italy, Spain, Poland, Ireland, Slovakia, Lithuania, Latvia,
- 2 in Germany, the UK, Austria, Belgium, Portugal, the Czech Republic, Bulgaria and Estonia,
- 3 in Russia, Switzerland, Croatia, and Slovenia.
GeoPost/DPDgroup also invested an additional €562 million to expand the company’s delivery capacity, including for the construction of new hubs (DPD Benelux, DPD France and Chronopost) and depots (DPD Germany, DPD UK, DPD France and Chronopost).
Accelerating initiatives in strategic segments: out-of-home, healthcare, and food services
In 2021, GeoPost/DPDgroup continued to deploy its out-of-home delivery network and consolidated its growth in healthcare and food services, two expanding sectors.
Last year was marked by the deployment of the network of Pickup points (lockers and parcel shops), with for example the acceleration of the Shop2Shop offer (focused on C2C), or the acquisition of 25% of PUDO24, a network of lockers in Spain and Portugal. In the long term, GeoPost/DPDgroup plans to offer the best coverage in Europe with 100,000 Pickup points, with the aim of providing up to 90% of the European population with access to a Pickup point in less than 10 minutes. This deployment is already well under way, with 70,000 Pickup points active in 31 countries as of the end of December 2021, including through subsidiaries such as Fermopoint in Italy and partnerships such as the one with PostNord in Scandinavia
GeoPost/DPDgroup seized the momentum on healthcare by acquiring BK Pharma Logistics, a Dutch company specialised in the temperature-controlled transport of pharmaceutical products for major national and international healthcare companies, and by consolidating the development of its subsidiary Biocair, a specialist in the delivery of pharmaceutical, biotechnology and life science products, which confirmed its strong growth trajectory with a 70% increase in revenue in 2021.
GeoPost/DPDgroup continued its growth strategy in the food services sector by acquiring a majority stake in Epicery, a French digital marketplace providing home delivery for fresh, local and high-quality products. With this strategic acquisition, GeoPost/DPDgroup expanded its solutions, particularly in the increasingly popular direct-to-consumer model. Online purchase of food product was one of the fastest growing segments in 2021. The health crisis has accelerated forecasts for online food purchase by almost 3 years. New trends are emerging, such as the demand for organic products, consumer preference for fair trade, and meal delivery. These trends are illustrated by the rapid developments of GeoPost/DPDgroup’s food delivery platforms such as DPD fresh in Belgium, SEUR Frio in Spain and Chronofresh in France, which grew by 41% and generated €90 million turnover. Overall, GeoPost/DPDgroup’s food segment grew by 48% in revenue in 2021 compared to 2020.
New urban services have also been developed with Stuart (expansion in Poland and Portugal), as well as with the acquisition of CitySprint, the leading company in same-day delivery services in the UK.