Royal Mail and GLS owners International Distribution Services (IDS) reported steady revenue growth over Q3, 2024 with strong growth in Royal Mail’s domestic Tracked 24/48 product. Across the company it had revenues up 0.8% y-o-y to £3,619m with both Royal Mail and GLS reporting steady growth in revenues.
Overall, IDS CEO Martin Seidenberg was pleased with the results, saying, “I am proud of my colleagues at Royal Mail and GLS who went above and beyond for our customers this Christmas.”
Royal Mail – Tracked 24/48 sees strong growth
The UK USO operator Royal Mail reported revenues up 2.4% y-o-y in the quarter to £2,335m. Its overall parcel revenues were up 3.2% to £1,250m thanks in part due to volumes growing 2.0% to 395m. Seidenberg continued, “At Royal Mail, we have made more progress to adapt to customer demand.”
One highlight in the quarter was the growth in the use of the domestic Tracked 24/48 products, whose volumes were up 19% y-o-y. Seidenberg said of this, “In particular I’m pleased with the strong growth in Tracked volumes.”
GLS – after adjustments, still in positive growth
Though the headline revenues were down 2.0% y-o-y to £1,284m in the quarter, IDS leadership pointed out that after adjusting for acquisitions and disposals, the segment saw revenues up 2.5% y-o-y. One of those disposals was the US freight business, and the company stated that the US parcel business saw improved profitability in the quarter as a result.
In Europe there is a mixed picture with some economies, notably Italy and Germany seeing weaker overall growth and others stronger growth. Seidenberg said in the last quarter he feared that Germany is on the brink of recession, and the poor performance of GLS Germany continued in this quarter. However he pointed out “GLS saw good export volume growth and strong performances in Spain and Poland. While the market backdrop remains difficult, we are focused on strategic delivery and mitigation of inflationary pressures.”
Given the UK, US and Europe’s economies’ generally weak growth figures, it appears that IDS are doing well in what remain challenging conditions. This sets the company in good stead for the probable takeover by its major shareholder EP Group in the coming year.
Author: Richard Shrubb
Source: Ti Insights
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