Feb 11, 2021
Online boom sends Royal Mail parcel volumes to record and boosts earnings
Royal Mail has forecast higher full-year operating profit after the pandemic-induced surge in online shopping led revenues to jump by a fifth and push the postal service to handling a record volume of parcels. The company gave expectations for full-year adjusted operating profit to be "Well in excess" of £500m. It had suspended its profit forecast earlier in the fiscal year given the pandemic uncertainty. Royal Mail has struggled to modernise its operations to make the most of the surge in ecommerce and parcel delivery before and during the pandemic, held back by its legacy operations that are geared towards delivering letters. It acknowledged extra costs from tighter Covid-19 restrictions and "Additional handling and sorting costs" from the higher than anticipated parcel volumes. Get alerts on Royal Mail PLC when a new story is published.
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