Omniva increases operating profit by 68% in 2021

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Post and logistics company Omniva has announced that total revenue was €40.3m (US$45.1m) for the period October-December 2021 – a €10.3m (US$11.5m) increase on the third quarter, July to September 2021.

Last year, the group’s total operating income increased by 10% to €148.7m (US$166.5m) compared to the previous year. According to the company, the increase was primarily affected by the €14m (US$15.6m) increase in revenue from parcel services, including a 47% increase in parcel services revenue in Latvia and 40% in Lithuania.

The earnings before interest, taxes, depreciation and amortization (EBITDA) of the group in 2021 amounted to €28.2m (US$31.5m), increasing by 36% year-on-year. The group earned an operating profit of €16m (US$17.9m), growing by 68% during the year, which was a significantly better result than was forecast. Operating expenses totaled €132.7m (US$148.5m), an increase of 5%.

The company also reported that the result was affected by increased e-commerce revenues in Estonia, Latvia and Lithuania as well as global and local shopping holidays at the end of the year. These factors increased the domestic and international parcel service volumes of the group.

According to Omniva’s data, almost 40% of the annual volume of registered domestic letters was sent in November and December. The local elections in October also increased the volume of direct mail.

As a result of Covid-19, parcel machines grew in popularity, as they offered an outdoor non-contact channel that can be used with gloves and contactless payment. For this reason, the company plans to install new parcel machines in Latvia and Lithuania. In the future, it also plans to expand its network in rural areas in Estonia.

Mart Mägi, chairman of the management board of Omniva, said, “2021 was a year of rapid development for the company. We launched the automatic customs declaration system, expanded the network of parcel machines in the Baltics and introduced the ‘several parcels in one locker’ solution. We successfully managed the parcel and mail volumes that increased several times during the shopping holidays at the end of the year.

“While making investments and working hard to make our services more customer-friendly, Omniva also increased its profit and turnover. The growing e-commerce positively affected the volume of parcel services and increased revenue both in the Baltics and domestically. We are optimistic about the new year. Last year, we developed the group strategy for the next period, which focuses on improving fast and high-quality customer service in the domestic market and in the Baltics, offering smart logistics solutions and automating work processes.”

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