Royal Mail full year profits up, revenues steady

In its financial statement for 2021-22, Royal Mail reports group revenues up by 0.6% to £12.712 billion and adjusted operating profit up by 8% to £758 million.

Among the divisions, Royal Mail’s domestic operations saw profits up by 20.9% to £416 million though revenues fell by 1.6% to £8.514 billion. Its international operation GLS saw profits up by 4.4% to £4.219 billion, though operating profits fell 4.5% to £342 million.

Excluding international volumes, parcel volumes grew 31% compared to pre-pandemic levels, though they were down 7% year on year. Addressed letter volumes actually grew by 3% year on year, though they were down 18% compared to 2019’s pre-pandemic levels. GLS’s parcel volumes grew steadily by 4%, led in part by a growth in B2B volumes.

Simon Thompson, Chief Executive, Royal Mail said: “It has been a year of progress, but there is much more to do. Over 50% of parcels are now processed automatically, the delivery of two new parcel hubs are on track, and we are reinventing our services and digital experiences to make sending and receiving even easier in an online age.

“But as we emerge from the pandemic, the need to accelerate the transformation of our business – particularly in delivery – has become more urgent. Our future is as a parcels business, so we need to adapt old ways of working designed for letters and do it much more quickly to a world increasingly dominated by parcels.

“The last two years has shown us all how quickly customer needs can change. Our focus now is to work at pace with our people and our trade unions to reinvent this British icon for the next generations, so that we can give our customers what they want, grow our business sustainably and deliver long-term job security for our great team. We have no time to waste.”

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