International Distributions Services plc (IDS.L), the parent company of Royal Mail and GLS, announced on Wednesday that its third-quarter performance was consistent with expectations across both segments.
Royal Mail is poised to achieve an adjusted operating profit by fiscal 2025, despite challenging market conditions. This forecast marks a pivotal step in Royal Mail's recovery, following two years of financial losses.
In its trading report for the quarter ending December 2024, IDS highlighted a successful festive season throughout the Group. The statement emphasized ongoing enhancements in both the operational and financial realms of Royal Mail, establishing a robust platform for future development.
Royal Mail has demonstrated exceptional reliability, ensuring that over 99 percent of items dispatched on or before the last recommended mailing dates were received in time for Christmas. The company experienced substantial growth in tracked parcel services during the festive period, with Tracked 24/48 volumes increasing by 19 percent year-on-year to reach 188 million parcels.
GLS also performed in line with expectations, experiencing significant export volume growth.
Keith Williams, Chair of IDS plc, commented, "The performance in Q3 underscores the sustained progress of the Group over the past five years. Royal Mail had previously lagged in implementing necessary changes to accommodate shifting consumer preferences towards more parcels and fewer letters, which affected profitability. Over these five years, both management and staff have tackled a 35 percent decline in letter volumes and continued parcel growth, necessitating substantial investments and operational changes."
The company has announced plans to expand its network to over 21,000 drop-off locations by March 2025, including approximately 1,500 lockers.
Concerning the offer from EP UK Bidco Limited, IDS anticipates that the Recommended Offer will be finalized or declared unconditional in the first quarter of 2025, pending the fulfillment or waiver of required conditions.
The material has been provided by InstaForex Company -
www.instaforex.com
