- 18 May 2017
- Transport / Logistics Services
Owner of the delivery company Hermes and international retailer and services provider Otto Group has reported an increase in profitability as well as revenues for the financial year 2016-17.
Otto Group released a statement that says its overall revenues for the financial year were up by 3.4% to €12.5 billion, that the Group says was “the equivalent of 5% turnover growth on a like-for-like basis”.
In addition, Otto Group has said that it will “target its investment towards Group companies which are trusted to achieve especially good performance and high growth in business models recognised as having future potential”.
As a result, Otto Group will be concentrating on key e-commerce areas and it also identified Hermes Europe as one of its “focus companies with high investment and growth expectations”.
The Otto Group statement added that the Hermes Group raised external sales by 4.9% to €1.574bn in FY 2016-17. “Adjusted for exchange-rate fluctuations, the Hermes Group in fact grew by 11.3%,” added the Otto Group.
For Hermes this is good news. While a medium sized delivery firm in a market dominated by giants, its revenues growing by double digits suggests a healthy and successful business that is exploiting the e-commerce delivery sector well. While other delivery businesses (notably DX Group) are failing, it seems that there is room to grow sustainably and well in what is a very crowded and competitive market.
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