German parcel logistics group Hermes achieved record revenues and volumes in the year endingFebruary 28, 2009, and is targeting strong growth for its new transport logistics business this
year.Hermes Logistik GmbH & Co. KG (HLG) increased its turnover, excluding minority holdingsand foreign subsidiaries, by 3.9% to €1,018 million and increased volumes by 3.1% to 252 millionshipments in 2008-09. The company extended its Parcel Shop network to more than 14,000 retailoutlets for parcel drop-off or collection, and increased its workforce by 273 to 3,468 employees.
“We performed very well in the last business year despite the worsening economic situationfrom the second quarter onwards, higher diesel prices and tough competition in the German parcelmarket, and achieved a record result both in turnover and shipment volumes,” declared managingdirector Hartmut Ilek. Hermes had grown more strongly than the overall market, he pointed out.
E-commerce remains the main growth driver in the parcels business, Ilek stressed. “Theinternet will become the most important order channel in the distance selling market in the comingyears. Large and small shippers have therefore invested in their online shops, and we are profitingfrom this in different ways at the same time.” The number of online shippers using the“Profipaketservice” for volumes of more than 1,000 parcels a year increased by 50% last year. Inaddition, two-man home deliveries of large consumer goods such as furniture and household equipmentincreased by 5.3% to 2.2 million items.
This year the company is aiming for strong growth for its new freight transport companyHermes Transport Logistics GmbH (HTL), which split off from the parcel operator Hermes LogistikGruppe Deutschland GmbH on May 1. HTL aims to generate revenues of about €220 million in its firstyear, mostly in the German market, and will expand into neighbouring markets such as France,Britain, Italy, Poland, Austria and Benelux with FTL services. In the second half of the year, HTLplans to offer air and sea freight forwarding services, primarily for shipments from Asia/China toEurope.
“HTL will develop into a general logistics services provider with an integrated businessmodel, offering customers transport services on land, water and in the air,” said managing directorFrank Rausch. HTL would benefit in particular from its years of experience as an in-house logisticsprovider for Otto Group, shipping goods such as textiles and electronics from the Far East toGermany, Rausch pointed out. Potential customers include existing HLG parcel customers.
In the core parcels business, HLG is planning further infrastructure investment this year,including a new hub in Hanover and possibly an additional distribution centre in south-westGermany. “We want to further increase volumes in the private and business customer segments thisyear with our customer-oriented services. This is shown by the start in the new business year whichhas so far gone very satisfactorily and better than expected,” Ilek added.
In addition, Hermes Germany aims to intensify its cooperation with sister companies inBritain, Austria and Italy in order to grow its cross-border business. The new Hermes Europeorganisation currently being set up will in future coordinate all the activities of the EuropeanHermes companies and holdings.
