Portuguese postal group CTT generated double-digit growth in its parcels business last year but suffered a heavy drop in profits.
CTT’S Express & Parcels unit increased revenues by 12.3% to €151 million and reported a slight operating profit of €2.1 million compared to a slight loss in 2017.
In Portugal, the parcels business increased revenues by nearly 15% to just over €90 million, thanks to full-year consolidation of logistics firm Transporta which was acquired in May 2017 and contributed €13.8 million in 2018. CTT’s volumes in Portugal increased by nearly 12% to just under 20 million parcels last year, driven by e-commerce growth.
In Spain, subsidiary Tourline Express increased revenues by 8% to €55 million last year as volumes grew by 13%. The company opened a new hub in Madrid last September to expand its handling capacity.
The mail business, which still dominates CTT’s overall finances, increased revenues fractionally to €532 million last year despite a 7.6% drop in addressed letters. The company benefited from a 42% rise in international inbound mail revenues resulting from higher terminal dues payments and heavier items.
Overall, including financial services, CTT reported stable revenues of €717 million last year but profits slumped due to higher costs, with EBIT down 18% at €38.7 million and net income down 28% at €19.6 million.
