La Poste sees 11.5% jump in profits

La Poste has reported an operating profit of €975m for 2016, which was 11.5% up on the previous year. Operating revenue was €23.3bn – an increase of 1.1%.

Focusing on the divisions, La Poste said that revenue for the Services-Mail-Parcels business unit recorded a 0.9% decline. Services and Mail revenue, which accounted for 80% of the business unit’s total revenue, recorded a 2.0% decrease to €9.147bn. La Poste said that this reflected “declining addressed mail volumes (-5.2%9) as well as an unfavourable mix/product effect, which were partially offset by several positive factors: the price increase that took place on 1 January 2016 (+3.4% on average), growth in international (+€46m) in particular from China, expanded postmen services (+€10m) and the launch of new services such as the driving licence written exam”.

La Poste added: “Parcels (Colissimo) achieved a 3.6% increase in revenue to €1.659bn. Business was sustained throughout the year, driven by growth in volumes (+6.6%9), particularly during the last quarter. This increase was partially offset by an adverse price/customer mix. The subsidiaries positioned in the direct marketing, logistics and energy transition markets, posted a total 4.2% increase in revenue, amounting to €548m.

“The GeoPost business unit, which operates under the DPDgroup brand in the BtoB and BtoC deferred and express parcel market in France and abroad, continued its sharp growth with revenue up 8.6% (+9.3% at constant scope and exchange rates) to €6.166bn.

“This performance is due to growth in volumes (+11.2%10 with 1,119 million parcels delivered in 2016), driven by a wider product and service offerings at home, outside home, and in new market segments such as temperature-controlled product transportation in the healthcare/pharmaceutical and food product industries.”

(As Post&Parcel reported earlier this week, DPD Germany has recently announced a new partnership with Hello Fresh for grocery deliveries in Germany.)