- 30 October 2020
- Transport / Logistics Services
UK delivery company Yodel has reported first quarter (Q1) sales and volume growth of 16% compared to the same period in financial year 2019-20. Revenues are projected to be between £500-£520 million for the full year.
In a trading statement, Yodel summarised its results that includes plans for a new Northern super-hub, hiring 3,000 temporary staff for the coming peak season, and growth in business despite the difficulties of the pandemic. Yodel said in the statement, “Our high quality, flexible business model has again proven resilient in the face of rapidly changing customer behaviours. Despite experiencing peak trading levels, our business has proven resilient and flexible, maintaining full operational capacity throughout the COVID-19 crisis, including a transition to working from home for office-based colleagues.”
Mike Hancox, CEO of Yodel, commented: “Our 2019 accounts reflect a business entering a major turnaround. What they do not show, however, is the unprecedented, profitable growth we have experienced in recent months. Thanks to the adaptability of our network and the tireless efforts of our colleagues, we have performed exceptionally well so far this year and expect EBITDA will deliver a strong positive result in FY21.
“The e-commerce market has seen a significant shift primarily driven by the COVID-19 pandemic, which accelerated the market forward by 3-4 years. Of course, our overriding priority throughout this period has been the safety of our colleagues and the public, and we have worked exceptionally hard to ensure we have a COVID-19 safe and functional work environment. In addition, our network has become a vital part of keeping the country moving.
“Not only have we increased our usual volumes in the right areas over this period, announcing new and extended partnerships with major retailers, but we have also supported key workers and the government with essential COVID-19 testing.
“Prior to the pandemic, we had been streamlining our operations to focus on more profitable traffic that our network is well-positioned to handle. As a result, we have become a leading partner for delivering a broad range of parcels and an expert in everyday premium items.
“While the economic impact of COVID-19 will continue to present challenges, we believe that the growth in volume we have seen in recent months is here to stay and we are investing in a new Northern Super Hub to ensure our network is fit to handle the long term growth we are targeting. We are in an ideal position to meet shifting consumer demands as we enter a dramatically new landscape.”