Triple digit profit growth at Royal Mail

Group operating profit grew strongly by 116% to £702 million at Royal Mail for the full financial year 2020-21.

Amongst the highlights, parcels revenues grew by 38.7% and its international parcels business GLS grew by 27.8% to £4.04 billion.

Keith Williams, Non-Executive Chair, commented: “The Group has delivered a pleasing set of results in what has been an unprecedented year. This is in no small part thanks to the dedication of our colleagues across the Group who have played a key role keeping people and businesses connected. The Group has demonstrated that it can effectively harness market growth opportunities
even in difficult circumstances and revenues previously forecast for three years’ time have been delivered this year. However there is still much to do. We need to accelerate the transformation of Royal Mail and continue to build on GLS’ strengths.”

“As the outlook for 2021-22 contains a number of uncertainties that could significantly influence volumes and costs it is difficult to provide specific guidance for 2021-22 for Royal Mail. Instead we have provided information on costs and some sensitivities to assist in quantifying potential outcomes for the year ahead. GLS is expected to perform in line with the guidance given in March 2021. Despite this uncertainty, there are grounds for optimism. The opportunities are there. We must harness them.”

Simon Thompson, Chief Executive, Royal Mail said: “Last year stood out as one of remarkable change at Royal Mail. It has been challenging at times, but we have learnt that we can deliver results and change at lightning pace when we are united by a common purpose. From starting to deliver on Sundays through to trialling drones – We’re changing. And it’s working.

“Looking ahead, we must remain laser focused on accelerating the pace of change, being brilliant for our customers, and doing all this in an increasingly efficient way.”

Martin Seidenberg, Chief Executive, GLS added: “GLS has delivered a strong performance including an exceptional margin. Our ‘Accelerate GLS’ strategy, which builds on our strengths, has already delivered benefits in 2020-21 and will unlock further growth opportunities in the future.”

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