Evri, the UK’s third-largest parcel delivery company, has more than doubled its annual pre-tax profits, achieving £119 million for the 53 weeks ending February.
The surge follows a “record year” for deliveries, with parcel volumes up 14.9 per cent to over 730 million, buoyed by a £32 million investment in customer service and rising demand for online second-hand goods.
The company, formerly known as Hermes, saw revenues climb 15.2 per cent to £1.7 billion, while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by a third to £292 million. These figures highlight a remarkable turnaround after a difficult 2022, during which Evri faced backlash for delayed Christmas deliveries, citing staff shortages, Royal Mail strikes, and adverse weather as contributing factors.
Chief executive Martijn de Lange credited the company’s success to strategic investments and strengthened retailer partnerships. “The company’s best ever year was underpinned by significant investment in our operations and customer service, as well as deepening our relationships with retailers and forging new partnerships,” he said.
Evri, now owned by Apollo Global Management following a £2.7 billion acquisition in July, continues to expand. Revenues for the first half of the new financial year reached £865 million, a 10.6 per cent year-on-year rise.
The UK remains Europe’s busiest parcel delivery market, with forecasts predicting a 10 per cent year-on-year increase in parcels delivered over the festive period. Research from FedEx and Effigy Consulting anticipates 1.29 billion parcels will be delivered in the UK during the final three months of the year, outpacing Germany’s 1.08 billion and France’s 524 million.
Evri is preparing for this seasonal surge, with its strong performance positioning the company well to meet growing demand. Despite group-level pre-tax losses narrowing to £10.5 million from £43.2 million last year—attributed to financing costs and one-off charges—Evri’s operational growth cements its role as a key player in the UK’s parcel delivery market.
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Evri doubles profits after record year for parcel deliveries