Royal Mail annual revenue tops £10bn
Royal Mail’s revenue for the year ended 25 March was up 2% to break through the £10bn barrier, driven by parcels growth.
In a statement issued today (17 May), the company reported a revenue of £10.172bn, up from £9.776bn. The adjusted operating profit after transformation costs was up 6% at £581m.
Commenting on the results, Moya Greene, the outgoing Chief Executive Officer, said: “It has been another successful year, despite the challenging environment.
“Group revenue is now over £10bn, a significant milestone, thanks to our geographical diversification and focus on growth.
“GLS had another strong year. Its revenue grew organically and through targeted acquisitions in higher growth markets.
“Parcel volume growth in UKPIL was our best for four years.
“We delivered a resilient letters performance.
“We continue to focus on cost avoidance and parcel revenue growth in the UK and through GLS.
“The good cash generation characteristics of our business will support our progressive dividend policy.”
Focusing on the business units, revenue at GLS was up 10% at £2.557bn but down slightly at UKPIL to £7.615bn.
UKPIL’s parcel revenue grew 4% and parcel volumes were up 5%. Letter revenue declined by 4% and letter volumes were down 5%, in line with expectations.
Looking forward to the coming year, Royal Mail said that UKPIL parcel volume and revenue growth rates are “anticipated to be at least the same as 2017-18”, while addressed letter volume declines of 4%-6% a year (excluding election mailings) are likely to continue medium-term.