26 May Royal Mail annual results
Royal Mail’s annual results were announced on May 20th 2021 for the financial year 20/21.
The company announced an adjusted operating profit of £344m for the period, with parcel revenue growth more than offsetting the decline in letter revenue.
The impact of COVID-19 saw a significant reduction in letter volumes, with addressed letter volumes (excluding elections) 20% lower year on year. However, performance improved throughout the year as more business activity resumed; in the first quarter addressed letter volumes (excluding elections) fell by around a third but improved to a 13% decline in the fourth quarter.
Business mail, despite also being negatively impacted, was more resilient throughout the year. Advertising mail saw volume reductions of almost two thirds during the first quarter of the year, recovering to a 23% decline in the fourth quarter.
The Consumer and SME channels also saw volumes improve over the course of the year. Total letter revenue declined by 12.5% year on year.
April 2021 trading
Royal Mail said in its trading update that a forward view on performance was difficult to provide in such a volatile macro environment, but trading performance in the first month of 2021-22 remained strong.
Revenue was up 24.1% and benefited from a positive mix, with parcel volumes down 2% and addressed letter (excluding elections) volumes up 25% on the same period last year.
As lockdown restrictions are further removed in the coming weeks some volatility is expected.
With parcel volume declines and letter volume growth, April is an example of the unusual trends it expects to see emerge during 2021-22.
For more information on Royal Mail’s trading results please visit https://www.royalmailgroup.com/en/investors/investor-news/