Omniva reports 16% revenue increase
Omniva has reported that its revenue for the first nine months of 2017 were up 16% at €74.2m.
Commenting on the latest quarter, Joona Saluveer, chairman of the management board of Omniva, said: “Due to the seasonal nature of the postal business, our Q3 volumes are usually low both in terms of international and parcels business shipments, but this year, our parcels business volumes continued to grow.”
Saluveer said that the end of Q3 was characterised by a growth of e-commerce parcel volumes, which have “arrived considerably sooner compared to previous years”.
“The first seasonal volumes usually come about in mid-October,” Saluveer explained, “but this year, the number of shipments began increasing during the second half of September, when our parcel volumes reached a level comparable to that of last year’s Christmas period.”
Focusing on the business divisions, Omniva said: “Although the nine-month sales revenue of postal services was stable with 1% in profit, its proportion in the sales revenue of the group fell from 36.2% to 31.5%. At the same time, the Baltic parcels business has become the business area with the largest proportion with a sales revenue of 33.6% of the total sales revenue of the company. The growth of the Baltics business was the result of fast growth in Latvia and Lithuania, 61% and 26%, respectively, compared to the first nine months of the previous year.”
Omniva saw the biggest growth in its international business, which grew by 43% over the nine months and now accounts for nearly a third of its turnover.
Saluveer said the positive results in terms of parcel volumes and international business “confirmed that entering the Baltic market first and the global logistics business later was the right decision”.
“In seven–eight years, the volume of Chinese e-commerce will reach an estimated 1bn parcels per day. This means one parcel per week for every person in the world – Omniva plans on being an active participant in this business when it happens,’ said Saluveer.
Picking out some of the highlights from Q3, Omniva said that its pilot project with Starship Technologies and Daimler to use robots for last mile deliveries in Kakumäe had been “exciting for customers” and had “garnered attention both among logistics companies across the world and in media”.
The company also concluded a contract with Eventus Ehitus and Nordecon Betoon (NOBE) for the construction of its new logistics centre, which will be completed in the autumn of 2018.
