Royal Mail announces 20% revenue increase on pre-pandemic levels

Royal Mail has announced today that its revenues have risen by 20 per cent compared to pre-pandemic levels.

The postal organisation saw its first quarter group revenue rise by 20.2 per cent compared to the same period in 2020, and by 12.5 per cent compared to the same period last year.

The amount of parcels sent via Royal Mail during the period decreased by 13 per cent compared to last year, but were still 19 per cent higher than in 2019.

Keith Williams, chair of Royal Mail, 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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