La Poste reports €975m profits

French postal operator La Poste has reported an 11.5% increase in profits over the last year to €975 million for the year end 2016. La Poste’s operating revenue was €23.3 billion, an increase of 1.1%.

Among its divisions, La Poste said that its Services-Mail-Parcels business saw a 0.9% decline. Services and Mail revenue, which accounted for 80% of this section’s revenues, saw a 2% decrease in revenues to €9.15 billion. According to La Poste, 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 said, “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.”  
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