Amsterdam, 27th May 2010. The GLS Group today announced its results for the year ended 31 March 2010. Despite the economic crisis, the pan-European parcel, express and logistics service provider reported only a slight decline in the number of parcels delivered. However, revenues and profits declined reflecting price pressure.

The number of parcels delivered fell slightly from 350 to 345 million whilst revenues fell from € 1.8 billion to € 1.7 billion. EBITA declined by 15.3 percent to 132 million euros representing an EBITA margin of 7.9 percent which compares with a prior year 8.7 percent.

“The results reflect tough price competition as competitors have responded to the world-wide economic recession by seeking to maintain volumes with price reductions”, says Rico Back, CEO of the GLS Group. “In some European countries and regions this has led to considerable price declines, a trend which must now be reversed.” 

 

Investments and price increases planned

A fast and reliable parcel service requires well trained staff, a strong physical network and the use of modern technology. Back: “GLS offers high quality parcel services and to support this, we continuously invest in our business even in difficult economic times. However, customers who require high quality have to be prepared to pay for it. This is why we will raise our prices in all countries.” In 2010/11, the GLS Group plans to invest approximately € 50 million. Investments will be made in the physical network infrastructure such as land, buildings and conveyor equipment as well as IT harmonization and development. “Modern IT solutions play a decisive role in making it easier to communicate with consignors and consignees”, says Back. “In addition, we will continue to optimise our processes without compromising quality."

 

Cautious, but optimistic forecast

In the current year, GLS expects the economy and the CEP market to show only a slight recovery. “The crisis is not over. Markets will change and there may be consolidation; business insolvencies and take-overs across sectors are expected in the year ahead“, says Rico Back. “In view of the still uncertain economic situation we think business will stagnate in 2010/11. Nevertheless, the GLS Group will continue to strengthen its European network to support the high quality service offered and to prepare the ground for the eventual economic upturn when it comes.”

The GLS Group in Europe

General Logistics Systems B.V., Amsterdam (GLS), is a pan-European company providing reliable, high-quality parcel and express services as well as value-added logistics solutions. The company offers its services through wholly owned and partner companies in 36 European states, and is globally connected via contractual agreements. The GLS system consists of 38 central transhipment points, 665 depots and 12,500 employees. Some 16,950 vehicles transport 345 million parcels annually for 220,000 customers throughout Europe. In 2009/10, GLS achieved revenues of 1.7 billion euros. GLS stands for “European Leader in Quality“. This is something that everyone working for GLS strives to achieve every day.