Evri targets one billion parcels a year by 2030 after record results

In its latest annual report Evri has revealed that its parcel volumes in 2023/24 rose by 15% to over 730 million, with over 99% of standard parcels delivered on-time.

The report also revealed that, in the 53 weeks to 29 February 2024, Evri’s profit before tax more than doubled to £119m (2022: £51m) with EBITDA up 33.7% to £292m, whilst revenue rose by 15.2% to £1.7bn.

The parcels delivery firm, which was acquired by Apollo Funds in August this year, attributed its performance in 2023/24 to new retail client wins, a £32m investment in operations and customer services in the period and the recruitment of over 6,500 couriers.

During the year Evri strengthened its long-term relationships with more than two-thirds of the UK’s biggest retail brands, including JD Sports, Next, and Marks & Spencer.

The company also signed several new strategic partnerships in 2023-24, including a deal signed in May 2023 with Amazon to become an accredited Seller Fulfilled Prime carrier delivering parcels for all merchants on Amazon’s website.

This was followed by a significant deal with Post Office in Novemebr 2023, which allows customers to send, collect, and return Evri parcels over the counter in more than 2,550 Post Office branches.

In the same month Evri inked a new partnership with Tesco, to allow customers to collect Tesco Clubcard points every time they send a parcel with Evri.

The report also revealed that during 2024-25, Evri extended its out-of-home pick-up and drop-off locations to over 16,000 sites.

Looking ahead, the report revealed plans to invest around £57m this year to meet growing demand for services and to further improve its operations and the customer journey.

This includes adding capacity to its Barnsley Super Hub, as well as investment in technology and data analytics to improve tracking, operational planning and cyber security.

The company is also on track to nearly double investments in its operations in fiscal year 2024-25, including a “significant” capital allocation to technology, data and analytics initiatives, designed to continuously improve the customer experience.

Evri is also driving forward its sustainabilty agenda, announcing a £19m multi-year investment in sustainability to drive the company’s ambitions, which includes growing its fleet of e-cargo bikes to 3,000 over the next decade.

Turning to this year’s performance the report revealed continued strong parcel volumes, during the first half of 2024-25, with group revenue for the 26 weeks ended 31 August 2024 up 10.6% to £865m, compared to the prior year.

Parcel growth in H1 has been across client segments, with online marketplaces, including pre-loved platforms and value-led market entrants, continuing to help grow volumes.

The report said: “We have seen significant contribution from the positive conversion of the new business pipelines, the continued growth of SME volumes and an improvement in the performance of our UK corporate segment, following a period of post-COVID-19 market normalisation.

“The stronger market conditions we have seen in recent months, support a more positive outlook in the general consumer backdrop, compared to the last two years. We remain on track to report growth in revenue and adjusted EBITDA in 2024-25, supported by higher volumes.

Martijn de Lange, Evri chief executive, said: “Evri had a record year - delivering more parcels than ever with over 99% arriving on time, a reflection of the ongoing dedication and hard work of our colleagues and couriers.

“The company’s best-ever year was underpinned by significant investment in our operations and customer service, as well as deepening our relationships with retailers and forging new partnerships.

“The growth of online marketplaces including value-led market entrants and the rising popularity of pre-loved fashion, which shoppers see as an affordable and sustainable option, have reshaped shopping habits.

“Our differentiated, flexible business model and focus on service means the business is well placed to take advantage of new consumer trends, such as these. This unique model together with the business’ track record of growth, and progress in executing our ambitious business plan were key factors that attracted Apollo Funds to acquire Evri in August.

“We are confident of further success under our new owner, who is committed to accelerating our growth strategy. We have been pleased to sustain the strong trading momentum into the current financial year, as we have continued to deliver double-digit revenue growth amid a more positive outlook for ecommerce in the UK and overseas in the short and long term.”

Apollo Partner Alex van Hoek, added: “Evri has an innovative model, great technology and purpose-built infrastructure for reliable, lower emissions delivery in the fast-growing e-commerce market.

“Evri puts the customer first, and we are pleased to see this continue to come through in their results, whether measured by on-time parcel volumes, new strategic partnerships, or investments in operations.