19th Jul 2016 06:16
LONDON (Alliance News) - Postal service and logistics operator Royal Mail PLC on Tuesday said trading in the first quarter of its financial year was in line with its expectations.
In the three months to June 26, group revenue for the FTSE 100-listed company grew 1.0% year-on-year. Revenue in its UK parcels and letters business declined 1.0%, with parcel revenue rising 2.0% but letter revenue down 3.0%.
Parcels volumes grew 2.0% in the quarter, helped by growth in import and account parcels business and improving trends in the consumer and SME segments. Letters volumes were down 2.0%, reflecting the timing of direct delivery volumes in the quarter the prior year and mailings associated with the UK's European Union referendum. Excluding these effects, letters volumes fell around 4.0% the quarter.
GLS, Royal Mail's pan-European logistics business, saw revenue grow 13% in the quarter, with volumes rising by the same amount. Trading for the unit was boosted by the timing of Easter and other public holidays in Europe.
"In what is traditionally a quieter trading period for the business, we saw no material change in overall trends," said Chief Executive Moya Greene.
"We continue to face the challenges caused by the current low inflationary environment and our highly competitive markets. We remain, however, very focussed on operational and financial efficiency and delivering a high quality service for all our customers," Greene added.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
RMG.L