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International Distributions Services (IDS) investor relations material

International Distributions Services Q3 24/25 TU earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 24/25 TU earnings summary15 Jan, 2025

Executive summary

  • Achieved strong operational and financial performance in Q3 2024, with Royal Mail on track to return to adjusted operating profit for FY 2024-25 after two years of losses.

  • Royal Mail delivered over 99% of items on time during the Christmas period, with tracked parcel volumes up 19% year-over-year.

  • GLS performed in line with expectations, with export volume growth and strong results in Spain and Poland, despite challenges in Italy and Germany.

Financial highlights

  • Group revenue for Q3 2024 was £3,619m, up 0.8% year-over-year; Royal Mail revenue rose 2.4% to £2,335m, and GLS revenue declined 2% to £1,284m.

  • For the nine months ended December 2024, group revenue increased 5.5% to £9,972m; Royal Mail revenue grew 7.5% to £6,256m, and GLS revenue rose 2.1% to £3,716m.

  • Royal Mail total parcel volumes grew 2% in Q3 and 6% for the nine-month period; addressed letter volumes declined 7% in Q3 and 6% for the nine months.

  • GLS saw 1% parcel volume growth in Q3 and 3% for the nine months; revenue growth in Euros (excluding acquisitions/disposals) was 2.5% in Q3 and 4.9% for the nine months.

  • US parcel business profitability improved following the disposal of the freight business.

Outlook and guidance

  • Royal Mail remains on track to return to adjusted operating profit (before voluntary redundancy costs) for FY 2024-25, a key milestone in its turnaround.

  • The recommended offer by EP UK Bidco Limited is expected to become unconditional in Q1 2025, subject to conditions.

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Frequently asked questions

International Distributions Services plc operates as a postal and delivery services company through its key subsidiaries Royal Mail and GLS. It provides parcel and letter delivery, logistics, and e-commerce distribution services in the UK and internationally. The company serves consumers, businesses, and government clients. The company is headquartered in London, United Kingdom, and its shares are listed on the LSE.

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