Royal Mail shares dip after full year results released

Royal Mail shares slipped by just under 5% this morning following the release of their results for the full year ended 25 March 2018. Adjusted operating profit was down 2.5% to £694 million, although they saw a 2% increase in revenues. Royal Mail say that adjusted operating profit before transformation costs was £694 million, up one per cent on an underlying basis

Incoming Royal Mail CEO Rico Back’s old company, GLS performed well with growth both through acquisitions and organic growth seeing revenue was up 15%. Parcel volumes in the UK also saw a strong performance with a 4% revenue rise whilst letter revenue dropped 4%. Parcel volumes rose 5% and letter volumes fell by 5%.

“It has been another successful year, despite the challenging environment. Group revenue is now over £10 billion, a significant milestone, thanks to our geographical diversification and focus on growth.

GLS had another strong year. Its revenue grew organically and through targeted acquisitions in higher growth markets. Parcel volume growth in UKPIL was our best for four years. We delivered a resilient letters performance.

We continue to focus on cost avoidance and parcel revenue growth in the UK and through GLS. The good cash generation characteristics of our business will support our progressive dividend policy.”
– Moya Greene, CEO, Royal Mail

70% of Royal Mail parcels now carry a barcode

An interesting snippet from the report for ecommerce retailers is that over 70% of Royal Mail parcels now carry a barcode. If you’ve not yet moved to barcoded labels then you’re definitely falling behind in terms of the service your competitors are offering.