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Royal Mail has shipped 117 million more parcels than last year during lockdown as the pandemic triggered a boom in ecommerce.
The postal specialist said parcel volumes were up 38% while its domestic account parcel volumes, which exclude Amazon deliveries, saw 64% growth.
However the letters market continues to be a drag for the group, which is under attack from an activist. The firm said 788 fewer letters, a 33% fall, were sent in the period from March 30 to June 28. The company said low levels of business activity were also an issue.
It told investors: “As the UK starts to come out of lockdown we are not seeing any change as yet in customer behaviour. Our customers are wanting more parcels delivered to their homes and are sending fewer letters. We are working as quickly as we can to adapt our business to meet our customer needs.
“The initiatives announced on 25 June, namely the integration of Parcelforce into Royal Mail, the management restructure and actions on non-people costs in Royal Mail, alongside Group capex reduction initiatives, are all underway.”
Royal Mail said last month it was cutting 2,000 management jobs as it attempts to save £130 million in costs from next year.
The Standard last week reported that Czech energy tycoon Daniel Kretinsky had bought another big chunk of Royal Mail, lifting his shareholding up to 12.1% as part of his gamble that the company’s shares are drastically cheap.
The billionaire known as the Czech Sphinx for his secretive ways now owns a stake worth £222 million after his vehicle, Vesa Equity, upped its stake from 11% and taking its holding up to 1 million shares.
Royal Mail shares have plunged as people have stopped sending letters and union disputes have battered confidence in the firm and chief executive Rico Back was ousted in May with a £1 million payoff.
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