Royal Mail pre-tax profits hit £726M amid COVID-fueled online shopping

Royal Mail pre-tax profits hit £726M amid COVID-fueled online shopping

Pre-tax profits of British multinational courier firm, Royal Mail, reportedly spiked to £726 million in the latest financial year to 28th March 2021. This is in comparison to a profit of £180 million which was recorded a year earlier.

According to sources close to the matter, these figures are attributed to the pandemic-fueled boom in online shopping. The COVID-19 pandemic offered an upsurge in the demand for the delivery of parcels and triggered a turnaround in the fortunes of the company.

As per Royal Mail, trading stayed strong in April, which is the first month of the new financial year. Valuations depicted a year-on-year upsurge of 24%, with the volumes of parcel falling 2%. The company further added that it was difficult to provide guidance on financial prospects for the present year.

This was because of considerable short-term uncertainty regarding economic growth and public health. Back in December, the company ended a dispute, spanning two years, with workers regarding job security, hours of work, and pay.

According to Royal Mail’s Chief Executive, Simon Thompson, this time the previous year, the company anticipated that the UK business would be loss-making. However, a lot has altered in a year. Thompson also underscored that last year stood out as one that depicted substantial change at Royal Mail.

Even though, it has been challenging at times, the company has learnt that it can provide change and results at the pace of lightning when its workforce is united by a common purpose, added Thompson.

For the record, Royal Mail’s revenues depicted an escalation of 16.6% to £12.6 billion and the performance was propelled by an upsurge of 39% in parcels revenue. This more than counterbalanced a decline of 12.5% in revenues from the company’s letters delivery operation.

As stated by Royal Mail, it is set to introduce a new dividend policy at the rate of 20p per share commencing this financial year.