GLS ups profits, eyes Europe, express growth
GLS, Royal Mail’s European parcels company, again grew rapidly last year and is planning to expand in Southern Europe and broaden its portfolio with more express services, according to CEO Rico Back.
In 2006, the parcel logistics operator increased revenues by 8.7% to EUR 1,595 million and improved its operating profit (EBITA) by 15.4% to EUR 179.4 million, he told the German transport newspaper DVZ in an interview. Volumes grew by 6.9%, including an increase of 20.1% in cross-border shipments.
In the financial year ending March 31, 2006, GLS increased operating profits by 37% to GBP 100 million (EUR 146.8 million), its revenues rose 13.6% to GBP 1,037 million (EUR 1,522.6 million), and volumes grew 14% to 293 million parcels. GLS said in May 2006 that it aimed for turnover of EUR 1.6 billion in 2006/07.
Back said that he aimed to strengthen GLS’ business in Italy and Spain this year. In Italy, the operator is currently represented through a franchisee. Back recently told German media that GLS is in talks to acquire a Spanish company. A start-up business is planned in Romania.
The GLS chief executive also said that the operator planned to expand its express services this year but did not provide any further details. GLS launched a small air express operation last autumn, linking Germany and the UK, and said that this would be extended to more European countries.
Back told the DVZ that GLS had no plans to enter the German mail market once it was liberalised due to the dominance of Deutsche Post and mail substitution by electronic communications. “There is no growth there. That is why the mail market is unattractive really,” he said.
