Baltic postal operator Omniva has reported sales of 74.2m (US$86m) for the first nine months of 2017 a 16% gain over the same period last year. The increase has been attributed to growing international volumes as well as earlier seasonal parcels.
Joona Saluveer, chairman of the management board of Omniva, said, “Due to the seasonal nature of the postal business, our Q3 volumes are usually low both in terms of international and parcels shipments. But this year our parcels business volumes continued to grow.
“The first seasonal volumes usually come in mid-October, but this year the number of shipments began increasing during the second half of September, when our parcel volumes reached a level comparable to last year’s Christmas period.”
Although the nine-month sales revenue for mail services was stable with 1% in profit, its proportion of revenue in the group fell from 36.2% to 31.5%. At the same time, the Baltic parcels business grew to 33.6%, making it the largest source of revenue for the company. The success of the Baltic business was the result of fast growth in Latvia and Lithuania, at 61% and 26% respectively, over the first nine months of the previous year.
Omniva’s Information Logistics Business and international business grew the fastest in the first nine months of 2017, by 36% and 43% respectively. International business now forms nearly a third of Omniva’s turnover. The nine-month sales revenue for international business in 2016 made up about 26% of the total sales revenue. In the first nine months of 2017 it was already 31%.
“In seven to eight years, the volume of Chinese e-commerce will reach an estimated one billion parcels per day,” explained Saluveer. “This means one parcel per week for every person in the world Omniva plans on being an active participant in that business when it happens.”
In Q3 of 2017, two of Omniva’s strategic focus projects reached important milestones. A contract was finally concluded for the construction of a new logistics center with procurement winners Eventus Ehitus and Nordecon Betoon (NOBE), after which construction works began. The center is the largest investment made by Omniva, with a total cost of 17.2m (US$20m). It is scheduled for completion by fall 2018.
November 6, 2017
