MRM.COM:Q1 Trading Update 2024/25

[POSTMAN]

https://www.myroyalmail.com/news/2024/0 ... ate-202425

This morning we released our trading update for the three months to the end of June 2024, which includes the important General Election period.

We have maintained our positive momentum, with good parcel volume growth, supported by further improvements in quality of service and revenue growth in both letters and parcels.

That said, during the same three month period last year we were still feeling the after effects of industrial action, so growth was depressed at that time and we should not expect the same level of growth through the remaining quarters of the year. We also benefited this quarter from the General Election taking place sooner than we expected.

The summary of our performance is:

• Total parcel volumes increased by 11% but addressed letter volume declined by 4%, highlighting again the need for urgent action to reform the Universal Service

• Parcel revenue increased by 10.1% while total letter revenue increased by 11.2%

During the General Election we delivered more postal votes and candidate mail than in any previous election:

• Deliveries of postal vote returns increased by 50% and delivery of candidate mail increased by 30% compared to the 2019 General Election

• In total we delivered 50.8 million poll cards, 7.3 million completed postal votes and 184 million pieces of candidate mail

• We delivered everything that was handed to us on time, giving us great confidence as we look ahead to peak.

We continue to make improvements, but we must keep up the pace

We have seen some positive results in the first quarter of the year, which demonstrates that our approach is working and our priorities are the right ones.

We are putting the foundations in place for growth through improved quality, the extension of the network window and removing half of our domestic flights. We have also expanded our out-of-home offering into more than 3,300 Collect+ stores and 400 lockers so far, growing to 5,000 stores in the coming weeks and 1,500 lockers by the end of the year.

It is vital that we keep up the pace of improvement as we enter the second quarter if we are to stay on track for the year.

Thank you

Thank you to everyone across Royal Mail for the hard work that has gone into delivering a good start to the year, and in particular the extra effort that went in ensuring we played our part in delivering democracy.

Let’s keep our sights focussed on delivering the plan we have already set ourselves to get back to profitability. This includes improving quality whilst controlling our costs.

With this focus, we can build on our performance and ensure that Royal Mail can reach its full potential.

Find our market announcement here.
Clean link... https://www.internationaldistributionse ... 8-7-24.pdf

[qwerty2]

“Total parcel volumes increased by 11% but addressed letter volume declined by 4%, highlighting again the need for urgent action to reform the Universal Service”

So they can cut thousands of jobs

[Barnacle]

Revenue from parcels increased but revenue from letters increased even more, that’s despite decreasing in volume, according to this latest missive.

It’s dripping in BS.

[broughts]

Still blaming the strikes that was over 18 months ago why not blame COVID as well it’s easy to make profits when u put stamp prices up slash delivery staff and ot and just fail fail fail

[clashcityrocker]

Revenue from parcels increased but revenue from letters increased even more, that’s despite decreasing in volume, according to this latest missive.

It’s dripping in BS.

How exactly is it bullshit?
Letters (excluding election) declined by 4%.
Letter revenue including election increased.

[Barnacle]

Revenue from parcels increased but revenue from letters increased even more, that’s despite decreasing in volume, according to this latest missive.

It’s dripping in BS.

How exactly is it bullshit?
Letters (excluding election) declined by 4%.
Letter revenue including election increased.

That was meant to be read along with the post above it actually.

These trading updates are always fluff pieces to please the market and then when the financial report is released it’s a different take.

[Mr Rush]

Letters (excluding election) declined by 4%.

Did they miss a zero off that? Would anyone at the coalface even notice a 4% decline (besides the inevitable extra lapsing)? Would it be perceptible on a graph?

Letters went down 4% yet letter revenue increased 11.2%. And somehow this proves the USO must be dismantled posthaste. Again, are these typos?

We delivered everything that was handed to us on time

Nice deflection.

[DiamondSmiles]

Another nice bonus coming your managers way soon no doubt.

[funkflex55]

Letters (excluding election) declined by 4%.

Did they miss a zero off that? Would anyone at the coalface even notice a 4% decline (besides the inevitable extra lapsing)? Would it be perceptible on a graph?

Letters went down 4% yet letter revenue increased 11.2%. And somehow this proves the USO must be dismantled posthaste. Again, are these typos?

We delivered everything that was handed to us on time

Nice deflection.

I haven't noticed it. Maybe it's because the area is affluent and gets a lot of post. Maybe it's because I'm moved from walk to walk continuously doing 2,3,4 days of mail. Maybe it's Maybelline.

[norris9]

Total parcel volumes increased by 11% but addressed letter volume declined by 4%, highlighting again the need for urgent action to reform the Universal Service[/list]

My round averages 60 parcels daily, so an 11% increase amounts to an extra 7 parcels a day.

I have no idea how many letters I average a day. Let's have a random guess of 650. So a 4% drop amounts to 26 less letters. Who knows what that would amount to in number of houses you go to less. Let's have a guess at 7 less houses....

So instead of going to 7 houses with letters, you are now going to 7 houses with parcels.....parcels take longer to deliver, so we are getting busier?

[Barnacle]

Total parcel volumes increased by 11% but addressed letter volume declined by 4%, highlighting again the need for urgent action to reform the Universal Service[/list]

My round averages 60 parcels daily, so an 11% increase amounts to an extra 7 parcels a day.

I have no idea how many letters I average a day. Let's have a random guess of 650. So a 4% drop amounts to 26 less letters. Who knows what that would amount to in number of houses you go to less. Let's have a guess at 7 less houses....

So instead of going to 7 houses with letters, you are now going to 7 houses with parcels.....parcels take longer to deliver, so we are getting busier?

And parcels cost more to deliver so does that 11% increase really amount to much and since the costs of parcels are buried within the costs of mail delivery, do any of these numbers mean anything much?

[TopperGas]

Total parcel volumes increased by 11% but addressed letter volume declined by 4%, highlighting again the need for urgent action to reform the Universal Service[/list]

My round averages 60 parcels daily, so an 11% increase amounts to an extra 7 parcels a day.

I have no idea how many letters I average a day. Let's have a random guess of 650. So a 4% drop amounts to 26 less letters. Who knows what that would amount to in number of houses you go to less. Let's have a guess at 7 less houses....

So instead of going to 7 houses with letters, you are now going to 7 houses with parcels.....parcels take longer to deliver, so we are getting busier?

And parcels cost more to deliver so does that 11% increase really amount to much and since the costs of parcels are buried within the costs of mail delivery, do any of these numbers mean anything much?

RM charges more to delivery parcels? If we're not making higher profits, or at least lower losses, something is drastically wrong with our pricing model

It's interesting to see GLS growth is now over half of RM's, as it was always apparently RM holding the group back.