Polish mail and parcels group Integer.pl has generated double-digit revenue growth but stagnating profits so far this year and sold off a stake in subsidiary InPost to finance its further growth which includes a new European cross-border delivery service.
The listed company increased revenues by 13% to PLN 495 million (€116.5m) over the first nine months of 2015 but operating profits (EBITDA) stagnated at PLN 21 million (€5m) and net profits dropped 7% to PLN 8.8 million (€2.1m).
In the July – September third quarter, which generated sales revenues of PLN 159 million, the group increased its overall parcel volumes by 26%, with the new Polish courier service reaching 900,000 parcels delivered since June. The average daily volume has risen to 24,000 parcels for more than 1,340 business clients.
In cooperation with Allegro – one of the biggest e-shopping platforms in Poland – InPost has introduced ‘Allegro Courier InPost’ which is the alternative solution for consumers who order goods online. The service provides cost-effective and fast door-to-door delivery, including parcel tracking.
At the same time, the group continued to expand its international parcel locker network with more than 300 new installations in core markets such as Poland, UK, France, Italy and Canada. The group’s lockers are now present in Poland, the UK, France, Italy, Ireland, Iceland, Lithuania, Latvia, Estonia, Russia, Czech Republic, Slovakia, Colombia, Canada, Australia and Saudi Arabia.
“The third quarter of 2015 was a very intensive time in terms of preparations for the pre-Christmas e-shopping season. That is why we are expanding the network of InPost parcel lockers in Poland and increasing the capacity of already working terminals which have the highest rate of use. Due to our expansion strategy by the end of 2015 we plan to have 1800 terminals in the Polish market – this is important especially as the utilization of InPost parcel lockers in December is expected to exceed 100 percent again,” said Rafal Brzoska, CEO of Integer.pl Group.
“We are also highly satisfied with the courier services in Poland and we aim at developing the company to the volumes ensuring valuation at PLN 400-500 million within 12-18 months,” he added.
Meanwhile, subsidiary InPost floated on the Warsaw Stock Exchange on October 13 after Integer.pl sold off $121 million worth of shares in the company representing a 42% stake. The funds raised by the IPO will be used to finance the further development of the easyPack parcel lockers network.
“The IPO of InPost is a very important driver for the global expansion of InPost parcel lockers. Funds from the IPO are invested in easyPack and increase the share capital of Integer.pl Group in the company. Thanks to them we will be able to continue the policy of dynamic expansion and further deployment of terminals in our strategic markets – the UK, France, Canada and Italy. We assume that one of them can achieve break even in the first half of 2016. Certainly a strong pre-Christmas e-shopping season will have a decisive influence on this,” Brzoska added.
To boost its international growth, InPost last month introduced a new international delivery service ‘InPost Cross Border’ in partnership with logistics platform Sheepla. This offers ‘door-to-door’ deliveries from Poland to 15 European countries as well as to InPost parcel lockers in the Czech Republic and Slovakia.
The new service accepts parcels for cross-border delivery via InPost couriers and InPost parcel lockers, and is dedicated to both business as well as individual clients. The service is easily available online via inpost.pl/crossborder for every InPost Parcel Manager user, a free platform for consignment management that can be integrated into webshops.
The InPost Cross Border service was launched with the option for delivery to a specified postal address in the following 15 European countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Spain, the Netherlands, Ireland, Germany, Portugal, Slovakia, Sweden, the United Kingdom and Italy. The range of countries covered by the service will be systematically expanded. However, in the Czech Republic and Slovakia InPost also delivers consignments to InPost parcel lockers.
"By automating the delivery, the world has become much smaller, and the collection of goods ordered online is much more convenient than ever before. The global perspective for e-commerce is also starting to be realised. Improving cross-border service has been our priority for a long time and the latest InPost service represents part of a long and carefully planned process. InPostCrossBorder is a response to the growing demand for international logistics services and reducing the delivery costs,” explained Brzoska.
The net cost of an InPost Cross Border door-to-door delivery ranges from €9 to €17.50 for shipments up to 5 kg. There is also the option, currently available in Czech Republic and Slovakia, for delivery to one of the InPost parcel lockers, the net cost of which is between €8 (parcels up to 5 kg) and €13 (parcels from 10-20 kg). Customers also have the option to track consignments and receive electronic confirmation of delivery.
