Royal Mail said first quarter revenues rose 12.5% in the first quarter as people continued to shop online with Covid lockdown restrictions still in place, although UK parcel volumes had started to slip as curbs were lifted.
Parcel volumes at the firm’s UK business were down 13% year on year in the three months to June 30, but were up 19% on the pre-pandemic 2019 quarter.
“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,” Royal Mail said on Wednesday ahead of its annual shareholder meeting
Parcel volume growth at the firm’s international GLS unit continued, although at a slower rate, due to “exceptionally strong” comparators from the same period in 2020-21.
Royal Mail said there was 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.”
