InPost – strong growth even with e-commerce in decline

Leading European parcel locker operator InPost increased sales 94% in the first financial quarter to PLN 1.542 billion (£282.5 million). Operating profit grew by 23% to PLN 409.1m (£75 million).

This was helped by parcel volume growth of 68% – handling 164.2 million parcels across the three countries in which it operates. Growth outpaced the market in France, the UK and Poland.

As part of its growth plans, InPost added 1,905 automated parcel machines (APMs) to its network, taking its network to 22,272.

In the UK, despite national e-commerce volumes dropping by more than 20%, the parcel locker company saw volumes passing through its network increase by 157%, even exceeding the record volumes of Q4, 2021. France InPost ßmeanwhile saw an 8% volume growth while the e-commerce market dropped in volumes by 16%.

“Pressure on purchasing power strained ecommerce growth rates on most European markets in the first quarter, and while we expect this to continue throughout the year, we also believe we’ve found a formula to continue growing faster than our competitors even in this difficult market,” said InPost CEO Rafał Brzoska.

In Poland InPost is already the dominant player in the market, with 48% of market share as of 2021. It grew parcel volumes by 16% in the period, and thanks to investment now 57% of Poles live within a seven minute walk of an APM site. It added 912 APMs to its Polish network in the period, and the number of users of its machines in the country grew 13% year on year to 15.3 million. It also more than doubled the number of APM sites in France from the end of 2021.

“Having 57% of Poles in close proximity to an APM site has clearly made a lasting improvement in the consumer experience in e-commerce in the country, particularly for the growing number of customers whose priorities include sustainability in delivery solutions,” Brzoska said, referring to figures showing InPost lockers can cut CO2 emissions by as much as 90% compared to door-to-door deliveries. “Our parcel locker solution uses substantially less energy and labour per package than door-to-door delivery. Our mission now is to build awareness and roll out that elevated convenience and sustainability proposition to consumers and merchants across our European markets.”