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Royal Mail revenues rise despite tough quarter

by LLB Editor
21st Jul 21 8:02 am

Royal Mail has reported that revenue in the three months to the end of June grew by 12.5 per cent before its annual general meeting today.

Year-on-year parcel volumes decreased 13 per cent as it came up against a tough comparative period when it was boosted by Covid-19 restrictions. On a two-year basis parcel volumes increased 19 per cent.

Keith Williams, Chair, commented: “The first quarter saw a strong revenue performance across the Group, with both Royal Mail and GLS reporting higher revenues than the prior year.

“For Royal Mail, as expected, parcel volumes decreased and letter volumes increased compared to the exceptional
period last year encompassing the UK’s first lockdown, when non‐essential retailers closed for the first time. We are
starting to see evidence that the domestic parcel market is re‐basing to a higher level than pre‐pandemic, as consumers
continue to shop online.

“For GLS, as expected, parcel volume growth continued albeit at a slower rate, due to the exceptionally strong
comparators from the same period in 2020‐21.

“As pandemic restrictions continue to ease there is still uncertainty about levels of COVID transmission, the impact on
consumer behaviour and economic factors such as GDP growth and inflation, all of which will impact on future
performance. We continue to expect fluctuations in volumes as we emerge from COVID restrictions, which we will need
to manage accordingly. Nonetheless we are encouraged by the revenue performance across Royal Mail and GLS in the
first quarter, and notwithstanding the current uncertainty, remain confident about the full year.”

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