Russian Post increased revenues by 8.2% to RUB 119.7 billion (€1.75 billion) in the first nine months of 2016 and reduced parcel prices for corporate customers and e-retailers during the Black Friday week from 21-28 November.
Russian Post explained that the revenue increase is due to the growing volumes of incoming international shipments. During the January-September period, the postal operator processed approximately 145.7 million international shipments (including import, export and transit) with product enclosures (parcels, small packages, EMS shipments). This is nearly twice as much as during the first nine months of 2015 when 78.5 million international shipments were handled.
At the same time, Russian Post’s net profit was amounted to RUB 1.2 billion (€17.51 million) which is above the expected results.
The postal operator said that its financial performance was improved, among other things, by the automation and optimisation of processes and an increase in “activity efficiency” and a 7% increase in the average monthly output per worker from RUB 39,200 (€572.27) during the first nine months of 2015 to RUB 41,800 (€610.23) in the first nine months of 2016.
Russian Post noted that RUB 5.2 billion (€75.9 million) were spent during the nine-month period on increasing employee wages in production. The next stage of wage increases for production personnel kicked off in December 2015.
This way, the company effectively "advanced" the wage increases for employees at postal offices, drivers and production staff at logistics centres in 2016 predicting profitability by the end of the year, which is enough to cover the increase in salary costs.
During the 21-28 November week, titled “Real Black Friday”, Russian Post reduced charges imposed on the declared product value of parcels by 0.5% – 4% for parcels of all corporate customers shipping valuable goods. This offer also benefited e-retailers participating in the nationwide online sale Real Black Friday from 24-25 November.
“Depending on the volume increases of corporate customers during the Black Friday week, Russian Post will consider the introduction of permanent price discounts from January 2017,” Sergey Malyshev, Deputy General Director Russian Post, Parcels and Express, said.
Russian Post acts as a strategic partner and a logistics operator of the Real Black Friday online sale. In addition to reducing tariffs on the declared product value of parcels, the company is actively developing its infrastructure and improving the quality of logistics services. This year, Russian Post has established new norms for the delivery times of parcels by road within Russia which fully meet the market criteria and aim to reduce the delivery times by an average of 30%. In some areas, the delivery times increased even more.
Russian Post continued launching new services on the last mile to ensure that the process of receiving parcels takes minimal time and is as comfortable as possible for customers. For this purpose, Russian Post created over 420 specialised centres for picking up and dropping off parcels in 169 cities and 140 courier delivery points in 134 cities.
As its latest service, EMS Russian Post has launched a new service for domestic shipments “EMS Optimal” which guarantees delivery within Moscow on the next working day after ordering. Customers can receive their parcels either via a courier or at one of the 84 pick-up and drop-off centres of Russian Post. Parcels ordered by 8pm can already be picked up at the centre from 8am the next working day. The service applies to parcels that meet the requirements for weight and dimensions. The maximal weight is 20 kg, and the size of one parcel side cannot exceed 60 cm.
The cost of sending a shipment weighing up to 5 kg amounts to RUB 160 (€2.33) for corporate clients, with an additional RUB 35 charged for each subsequent kilogram. Private customers can send a parcel for RUB 180 (€2.62) in the own packaging, with each subsequent kilogram costing RUB 40. If a customer wants the parcel to be delivered by a courier, this service will cost RUB 230 (€3.35) for corporate customers and RUB 250 (€3.65) for private individuals.
The most important thing in this service is that it opens up additional business opportunities, particularly for the delivery of goods for online shoppers, Russian Post stressed. Now, each online shop delivering to a pick-up and drop-off centre can use it as an additional option for customers to pick up their parcels which saves times for customers.
"The very name of the service indicates the optimal price-quality ratio, which is key for our solution. Putting a demanded and comfortable service at an affordable price on the market is always a new opportunity that will not only create more favorable conditions for doing business in Moscow, but also increase its competitiveness. Urgent documents and parcels can now be delivered within Moscow as quickly as possible to meet the most advanced international standards,” Malyshev concluded.
