European parcels group GLS said today it is targeting growth inexpress, B2C and international shipments, will invest €94 million this year in infrastructure andservices, and is seeking more global partnerships.
Outlining its 2007/08 results and plans for the new business year, theRoyal Mail subsidiary said it achieved strong sales and volume growth and profits in line withexpectations.
GLS increased its sales by 9.2% to €1.75 billion while parcel volumesincreased 7.7% to a new record of 335 million. Operating profits (EBITA) of €172 million were “inline with expectations”. In the year ending March 2007, the company had made an operatingprofit (EBITDA) of €179.4 million. Royal Mail stated in early May that GLS made an operating profitof £114 million in 2007/08, compared to £115 million one year earlier.
“Our results include long-term investments, including a new company in Romaniawith 16 locations, and the restructuring of our networks in France and the Benelux,” CEO Rico Backpointed out. GLS invested approximately €47 million in capital expenditure in 2007/08. In additionto France and Romania, new hubs and depots were opened in Austria and Poland, and additionalfranchise depots were acquired in Italy.
“The newly established GLS Romania is growing and developing according toplan,” Back said. The integration of GLS Belgium Distribution (formerly ABX BELGIUM Distribution)into the GLS system is also progressing as planned. “In the Benelux region, we are building twoseparate networks for freight and parcels. Process conversion, including modifying the depots andharmonising the IT network, will be completed by the end of 2009.”
For 2008/09, GLS aims to increase sales by about 5.7% to €1.85 billion, withdouble-digit international growth rates and domestic growth above overall market growth rates. GLSis expecting the European CEP market to grow at a moderate rate of about 3.5%. “The increase in ourinternational shipments is testimony to the strength of our European network and our high qualitystrategy,” Back said.
In 2008/09, GLS is planning network investments totalling €94 million, withsignificant investments in Germany, Poland, the Netherlands and France. The focus will be onrolling out industrial parcel production processes throughout the network as well as implementingnew solutions for the “last mile” in B2C business. Other priorities will be the expansion of theGLS national and international express product offering, and GLS will continue to pursue globalpartnerships such as the recent cooperation agreement with Gati in India.
“In appraising investments, GLS will consider their environmental impact. Inview of the challenges posed by climate change, we are increasing our activities in this area,”Back pointed out. “It is our aim to reduce the Group’s CO2 emissions by 20 per cent per parcelin the next five years. Through new technologies and pro-active measures, we want to promote theuse of renewable energy sources and use resources in a more efficient and environmentally friendlymanner.” The CO2 reduction target covers the 2008-2013 period.
The GLS network covers 36 European states through subsidiaries andpartners, with 32 central transhipment points, 680 depots, 13,000 employees and 19,700 vehicles inoperation. It provides worldwide distribution through contractual partnerships.
