The Hermes Group has reported an increase in its turnover by 9.0% to €3.5bn for the FY 2019/20. In total, Hermes transported 928m of shipments. The company has recorded particularly strong growth in France, where the number of shipments handled by Mondial Relay rose by 51%.
Throughout 2019, Hermes has further consolidated its strong position in the three largest European markets of Germany, the United Kingdom and France.
The company has continued to promote the growth of alternative drive systems. Hermes UK, for example, said it has switched 100% of its vehicle fleet in London to electric vehicles.
Hermes Germany has also teamed up with partners to initiate a pilot project to set up parcel stations in tube and train stations in Hamburg. Locker stations have also become increasingly important in France and the United Kingdom.
Furthermore, Hermes is increasingly establishing itself as a solution provider to clients with smaller shipment volumes such as through its ProfiPaketService. This segment has grown by around 20% in Germany compared to the previous year.
“The Hermes Group has again recorded above-average growth for 2019, both in terms of turnover and shipment volumes, and has done so in a highly dynamic and competitive market environment. We are pleased that, in respect of profit performance, it proved to be one of the best financial years in Hermes’ history. The Group has also recorded increased volumes and turnover from cross-border shipments, in particular from China and the USA,” explained Kay Schiebur, Otto Group Services Executive Board Member and Chair of the Supervisory Board of Hermes Europe.
However, the start of the new financial year has been shaped by the coronavirus pandemic. The crisis has affected individual national subsidiaries to varying degrees due to the different protective measures implemented by the authorities in each country. For example, in light of the COVID-19 restrictions introduced by the French government, Hermes shut down its entire ParcelShop network in France, which had a knock-on effect on shipment volumes and revenues. With lockdown regulations now being relaxed, it has begun to ramp up its activities again.
Hermes confirmed that in the United Kingdom, its business model has shown itself to be stable throughout the coronavirus crisis, with its national subsidiary recording considerable growth in shipment volumes.
For Hermes Germany, shipment volumes initially fell in March before rising by almost 40% in April compared to original forecasts, thereby returning to the pre-Christmas period level. Despite this rapid growth, more than 90% of all shipments within Germany continued to be delivered the next day, the same levels achieved before the coronavirus outbreak.
Currently, the company does not consider it possible to accurately forecast the extent to which the crisis will impact the Hermes Group and its global operations.
Source: Hermes Group
