Omniva Group has reported steady growth for both its parcel and information logistics businesses for 2016.
Last year the total commercial revenue of Omniva grew by 27% to 95.8m (US$102.1m), which was mainly influenced by the hike in volume of international e-commerce and logistics services.
Despite this, the net profit of the group for the year was 1.16m (US$1.23m), down 20% compared with the previous year. This could be credited to its 3% decline in revenue from postal services, which the company only offers in Estonia where Omniva is based. This is due to a decrease in the volume of letters being sent.
Aavo Kärmas, CEO at Omniva, said, “The volume of letter services decreases by 1015% each year. In 2016, the volume of domestic letters decreased by 12%, and deliveries of advertisements and periodicals by 2% and 3%, respectively.”
It was better news elsewhere in the business, with Omniva’s domestic market on the Baltic region growing to produce a 17% rise in sales revenue from parcel business services compared with the previous year, with the increase particularly notable in Latvia where there was a growth of 90%.
The parcel machine service grew in all three Baltic states, representing a growth of 42%. The service grew by 25% in Estonia, 92% in Latvia, and 90% in Lithuania. Altogether, Omniva delivered 40% more parcels to its customers via parcel machines in 2016 than it did in 2015.
“In 2016, the Group invested in the installation of new parcel machines in the Baltic region, in the establishment of a new logistics center, and in the development of a new logistics information system,” said Kärmas.
“The main investments were made for the purpose of major projects, which will ensure more efficient business processes and a more customer-friendly service in the future.”
Last year, Omniva also started building the most advanced logistics center in the Baltic area to handle the growing volume of parcel business. The future logistics center is located in the vicinity of Tallinn, near the airport and important traffic intersections. It will be completed in the autumn of 2018.
“We took account of the growth forecasts for the next ten years regarding the volume of parcels. This will ensure that the new logistics center will be able to handle significantly larger volumes. In addition to the new building, we will also invest in a state-of-the-art sorting technology,” added Kärmas.
April 3, 2017