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Operations

InPost reports strongest year-on-year volume growth of 2022

mmBy Elizabeth BakerNovember 11, 20223 Mins Read
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Automated parcel machine (APM) service provider InPost Group has reported nine months of accelerating volume growth and expansion of its locker network across all core markets.

According to the company, Q3 was the strongest year-on-year (YoY) volume growth of 2022 across all core markets. From July 1 to September 30 (Q3), the total parcel volume was up 32% YoY, with revenue up 32.6% to zł1.6bn (US$372m).

In the UK, Q3 volumes grew 227% compared with the same period in 2021, enabled by a dense network of APMs in London, Birmingham and Manchester, where 46% of residents are within a seven-minute walk of an InPost APM. A new locker-to-locker service in the UK also experienced a 45% repeat customer use, after only two months since the launch. The UK also saw a 30% increase in C2X volumes over Q2 2022. In Poland, there was a 26% YoY volume growth for Q3 driven by both APM and to-door parcel growth, and France saw a 34% YoY volume growth for Q3, which was mainly attributable to C2C growth in InPost’s French subsidiary Mondial Relay and a weak base.

The company continued investment in growth in this period, with 2,064 APMs deployed in Q3, taking the total number of APMs across InPost’s network to 26,330. There are 19,254 APMs in Poland, 1,653 in France and 4,333 APMs in the UK. In Q3, InPost also introduced sustainable services such as parcel sharing and EcoBox orders and returns; expanded ECOreturns; and launched package-less returns with Amazon. According to the company, APMs in Poland already reduce CO2 emissions by 53kg daily – on an annual basis, this is the equivalent benefit to planting 3,000 trees.

In light of these results, the company has stated that the nine months of volume growth and profitability outperformance bode well for full-year outcomes. However, since mid-October trading has shown a moderation of growth rates, indicating the long-anticipated pressures on the Polish consumer are starting to materialize. Nonetheless, future margins are expected to be supported by the implementation of annual contractual price increases, a process that will continue into 2023. As a result, InPost management remains confident about the medium- and long-term prospects to gain further market share across all markets.

Rafał Brzoska, founder and CEO of In Post, said, “InPost’s growth continues to accelerate across each of our core markets. Consumers’ desire for convenience and flexibility attracts them to our services, while e-commerce merchants seek the sustainable and cost-effect solutions we provide. With inflationary pressures continuing to challenge merchants, the need for improved courier productivity and a seamless last-mile automated solution has never been greater.

“As we strive to deliver continued growth across Poland, France and the UK in Q4 and into 2023, we remain confident that the fundamental drivers for out-of-home delivery remain in place. This confidence underpinned our decision to invest in the expansion of our APM network in Q3, adding 2,064 new APMs, comprising 239,000 individual lockers, to our network, bringing our total network to 26,330 [APMs].”

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