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Operations

Hermes turnover rises 9%

James MuirBy James MuirMay 14, 20202 Mins Read
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Turnover at Hermes for FY 2019/20 increased 9%, making it one of the best years in the company’s financial history.

For the year ending February 29, turnover was €3.5bn (US$3.8bn) as Hermes companies expand their customer base and acquire new clients.

Among clients with smaller shipment volumes, Hermes’ business in Germany grew 20% bringing the total number of shipments across the Hermes Group to 928 million in 2019/20.

Kay Schiebur, chair of the supervisory board of Hermes Europe, said, “Continued investments in a dense network of modern locations and in new technologies were significant factors in this success. In addition, innovative and customer-centered solutions for final-mile delivery have helped us to unlock further opportunities for growth.”

He added, “However, this positive business development cannot disguise the fact that the sector is subject to significant structural pressures in terms of pricing and costs. Consequently, offering sustainable pricing arrangements to our commercial customers and continuing to drive forward innovation in last-mile delivery remain key challenges.”

Hermes Group invested over €100m (US$108m) including opening a distribution center at Munster Osnabruck International Airport in Germany.

Another premises near Bremen is set to start operations in October 2020, and a logistics center for furniture and bulky items opened in Ansbach on March 24.

In France, Mondial Relay opened a logistics hub in Lyon capable of processing 200,000 shipments per day in time for Black Friday.

In the UK, the largest distribution center in Europe is set to be completed in 2022 with a €69m (US$74m) investment in the construction of a new site in Barnsley.

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